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RR-F4/Business and the Business Environment/Module Booklet/a business environment 1.pptx

Company legal structures

Private sector companies

The part of an economy in which goods and services are produces and distributed by individuals and organisations that are not part of the government or state bureaucracy.

A variety of legal structures exist for private sector business organisations depending on where they are located. Individuals can conduct business without necessarily being part of any organisation. The main types of businesses in the private sector are;

Sole trader

the business is owned by just one person. There are no legal formalities needed but once set up they must pay tax and national insurance contributions.

A partnership is when more than one owner shares the responsibility of the business. There are no legal formalities though a deal of partnership may be drawn up which is a contract about the roles and procedure to be divided between the partners. All the active partners all have unlimited liability

Private limited company

Private limited company - They must set out the company’s sector and constitutional procedure in the memorandum of association and the articles of association. They are registered for VAT if turnover exceeds £150,000. Maximum number of members in a private company is restricted to 50 members. It has limited liability with private shares. Private companies may issue stock and have shareholders. However their shares do not trade on public exchanges and are not issued through an initial public offering. In general the shares of these businesses are less fluid

Public limited company

A Public limited company is where shares are open to the public. It is one whose membership is open to general public. The minimum number required to form such a company is seven but there is no upper limit. Such companies can advertise to offer its shares to the general public through a prospectus. These public limited companies are subjected to greater supervision of control. It has limited liability. A public limited company’s stock can be acquired by anyone and holders are only limited to potentially lose the amount paid for the shares. Because of large numbers of investors the risk of loss is divided

A franchise is where a business owner pays a corporation to use their name and receives advice and marketing for the business

A cooperative is where all workers have equal pay and make joint business decisions

Cooperatives

It is owned by and operated for the benefit of those using its services. Cooperatives have been successful in a number of fields including the processing and marketing of farm products, the purchasing of other kinds of equipment and raw materials, in wholesaling, retailing, credit and banking

Voluntary organisation

A voluntary association or union also sometimes called a voluntary organisation or unincorporated association is a group of individuals who voluntarily enter into an agreement to form a body or organisation to accomplish a purpose

Charitable organisation

A charitable organisation is a type of non profit organisation. It may be in areas serving the public interest

RR-F4/Business and the Business Environment/Module Booklet/BIS - A Guide to Legal Forms for Business.pdf

A GUIDE TO LEGAL FORMS FOR BUSINESS

NOVEMBER 2011

Guide to Legal Forms

Unincorporated legal forms:

The distinguishing feature of unincorporated forms is that they have no separate legal personality. There are three main forms:

Sole Trader This is the simplest way to set up and run a business: ownership and control of the business rests with a single individual. Being a Sole Trader is inherently risky because the individual is not separate from the business and has sole unlimited personal liability for the business, its debts and contractual obligations, and any claims against it. They own all the assets of the business and can dispose of them as they wish, and may employ staff and trade under a business name. However it is unlikely that sole trader status will be suitable for businesses which need more than a small level of external investment – being unincorporated limits borrowing and prevents the business raising equity finance by issuing shares.

Regulation for the Sole Trader is minimal: there is no requirement for a formal constitution for the business, and no need to register or file accounts and returns with Companies House. Sole Traders are treated as self-employed by HMRC and must register and make an annual self assessment tax return – profits from the business are treated as personal income subject to income tax and national insurance contributions.

Unincorporated Association Unincorporated Associations are groups that agree, or ‘contract’, to come together for specific purpose. They normally have a constitution setting out the purpose for which the association has been set up, and the rules for the association and its members. They are typically governed by a management committee. All members of the management committee will again have unlimited personal liability, unless they are specifically indemnified in the constitution. As for a Sole Trader, there is a limitation on raising finance, minimal regulation, and self-employed tax status for management committee members.

Partnership A Partnership is a relatively simple way for two or more legal persons to set up and run a business together with a view to profit. A partnership can arise, without any formal agreement, when people carry on a business in common, but typically there is agreement to trade as a partnership. Partners will usually draw up a legally binding partnership agreement, setting out such matters as the amount of capital contributed by each partner and the way in which they will share the profits (and losses) of the business.

Again the Partnership has no separate legal personality. Partners share the risks, costs and responsibilities of being in business. Because partners generally bear the consequences of each other’s decisions, partners usually manage the business themselves, though they can hire employees. Partners usually raise money for the business out of their own assets, and / or with loans, although again being unincorporated

limits borrowing in practice, and not being a company with a share capital prevents the business itself from raising equity finance by issuing shares.

Each partner is self-employed and pays tax on this basis on their share of the profits: The partnership itself and each individual partner must make annual self-assessment returns to HMRC, and the Partnership must keep records showing business income and expenses.

Legal persons other than individuals – such as Limited Companies or Limited Liability Partnerships – can also be partners in a partnership. They are treated like any other partner except that they have additional tax and reporting obligations – for example companies must pay corporation tax rather than income tax on their profits from the partnership.

Limited Partnership Not to be confused with a Limited Liability Partnership (see below) – a Limited Partnership has two sorts of partner: general partners and limited partners. The form is similar to a Partnership, with the main differences being that the limited partners may not be involved in the management of the business and their liability is limited to the amount that they have invested in the partnership. Note that limited partners are different from ‘sleeping’ partners in a Partnership or Limited Partnership, who do not take part in running the business but remain fully liable for its debts. Limited partnerships must register at Companies House, and do not come into existence until they are registered. Changes to the partnership must also be registered.

Trust Trusts are unincorporated and have no legal identity of their own. They are essentially legal devices for holding assets so as to separate legal ownership from economic interest. A trust holds assets on behalf of an individual or another organisation and governs how they are to be used. A trust is run by a small group of people called trustees who are legally responsible for the administration of the trust and personally liable for any debts or claims against it that cannot be met out of the trust’s own resources. Trusts make their own set of rules – enshrined in a trust deed – which sets the trust’s objectives and may be used to ensure that assets and profits are used for a particular purpose. Trusts do not typically raise finance – they simply manage assets and do not distribute profits. Trusts are often used in conjunction with unincorporated associations, which cannot themselves own property.

Incorporated legal forms

Limited Company The Limited Company is the most common legal form in use for running a business. Companies are ‘incorporated’ to form an entity with a separate legal personality. This means that the organisation can do business and enter into contracts in its own name.

On incorporation under the Companies Act 2006, a company is required to have two constitutional documents:

 a Memorandum, which records the fact that the initial members (the subscribers) wish to form a company and agree to become its members. The Memorandum cannot be amended; and

 Articles of Association – often just referred to as the Articles – which are essentially a contract between the company and its members, setting the legally binding rules for the company, including the framework for decisions, ownership and control. The Companies Act 2006 provides significant flexibility to draw up articles to suit the specific needs of the company, provided it acts within the law.

A Limited Company is owned by its members – those who have invested in the business – and as the name suggests they enjoy limited liability – i.e. the company’s finances are separate from the personal finances of their owners and as a general rule creditors of the business may only pursue the company’s assets to settle a debt. The personal assets of the owners are not at risk. There are two mechanisms for company membership:

Company Limited by Shares Most companies fall into category. Members each own one or more shares in the company and are therefore known as shareholders. Shareholders’ limited liability means that they only stand to lose what they have already invested or committed to invest (amounts unpaid on shares).

Company Limited by Guarantee Members of the company give a guarantee to pay a set sum if the company should go into liquidation.

A company must have at least one member. In a Company Limited by Shares, each share usually has a voting right attached to it so the members are able to vote on important decisions affecting the company. The arrangement is normally one share one vote, although many companies will create different classes of share with different voting rights attached. In a Company Limited by Guarantee the arrangement is usually one member one vote (OMOV).

Day to day management of a company is nominally separate from its ownership and undertaken by a director or board of directors, with the core principle that they act in the interest of the company and its members. However, directors may also be members, thus the simplest form of Limited Company is a single member who owns the whole company and is also its sole director. A company must have at least one director (public companies described below must have two) and at least one director must be a real person.

In a Company Limited by Guarantee, finance comes from the members, from loans or from profits retained in the business as working capital. A Company Limited by Shares can also raise capital from shareholders in return for a stake in the business – any profits from the business are usually distributed to shareholders in the form of dividends, apart from profits retained in the business as working capital. Limited Companies have a greater capacity to finance themselves with loans than unincorporated businesses, as they can use their assets as security for loans, creating a ‘charge’ over the company’s assets. These charges are registered at Companies House, providing transparency about the extent of a company’s secured credit. Lenders, including banks and building societies will therefore typically make incorporation a condition of providing a business loan.

The Limited Company form is subject to stricter regulatory requirements than unincorporated forms: greater accountability and transparency is the price to pay for the benefit of limited liability. Accountability is both to the company’s shareholders and also to the public who may wish to deal with the business. Companies are registered at Companies House, and it is the directors’ responsibility to maintain the company’s public records – including annual accounts and an annual return about the company – and to file them at Companies House. They must notify Companies House of changes in the structure and management of the business.

If a company has any taxable income or profits, it must tell HMRC that it exists and is liable to corporation tax. Companies liable to corporation tax must make annual returns to HMRC.

A Company Limited by Shares is either a Private Limited Company (Ltd) or a Public Limited Company (Plc). The key difference is that the Public Limited Company is permitted to offer shares for sale to the public. The Private Limited Company is the most common legal form used by the vast majority of businesses – ranging from a business with a single shareholder director to large companies which have attracted large investments of private equity capital. Public Limited Companies usually begin life as Private Limited Companies but later go public for the advantage that this provides in raising finance. A Public Limited Company must have at least two directors and a qualified company secretary. It must have issued shares to the public to a value of at least £50,000. Public companies attract stricter regulation than private companies to ensure transparency and protection for the public investor, who is often more separated from the management of the company than in a private company.

A Public Limited Company may also become a Listed Company by floating its shares on a recognised stock exchange, creating a wider market for its shares. Listed companies are subject to even greater regulatory requirements in the form of listing rules and information disclosure requirements put in place to ensure the market works and maintains its integrity.

Limited Liability Partnership (LLP)

A Limited Liability Partnership is a body corporate with a separate legal personality similar to a company. Unlike in a normal partnership, the members of an LLP enjoy limited liability as the name suggests – liability is limited to the amount of money they have invested in the business and to any personal guarantees they have given to raise finance. Each member takes an equal share of the profits, unless the members’ agreement specifies otherwise.

Much like a Partnership, each non-corporate member of an LLP needs to register as self- employed with HMRC, and both the LLP itself and each individual member must make annual self-assessment returns HMRC. Non-corporate members of an LLP pay income tax and national insurance contributions on their share of the profits. Additionally, LLPs must register and file accounts and annual returns at Companies House. At least two members must be “designated members” who hold additional responsibilities – it is they who appoint auditors and sign off and file the accounts at Companies House.

Limited Liability Partnerships have much more freedom than companies over arranging their internal affairs, for example in the way in which decisions are made, and the way in which profits are distributed to members.

Community Interest Company (CIC)

A Community Interest Company (CIC) is a form of company (limited either by shares or by guarantee) created for so called ‘social enterprises’ that want to use their profits and assets for community benefit. CICs are easy to set up and have all the flexibility and certainty of the company form, but with several special features which ensure they serve a community interest:

 First, all companies applying to be registered as CICs must submit a community interest statement to provide the CIC Regulator with evidence that they will satisfy a community interest test defined in law. The company must continue to satisfy the test for as long as it remains a CIC, and must report annually to the Regulator.

 Second, a CIC must have an “asset lock” which restricts the transfer of the company’s assets (including any profits generated by its activities) to ensure that they are used for the benefit of the community.

 Third, CICs are subject to caps on dividends and interest payable – to strike a balance between encouraging people to invest in CICs and the principle that the assets and profits of a CIC should be devoted to the benefit of the community.

Charitable Incorporated Organisation (CIO)

The Charitable Incorporated Organisation (CIO) is a new legal form which will be available to charities in England and Wales from 2012. Currently charities wanting to incorporate normally do so as a Company Limited by Guarantee – which means dual registration with Companies House and the Charity Commission and dual regulation under company law and charity law. CIO status will offer the benefits of incorporation, but the organisation will only be registered with the Charity Commission and regulated under charity law. The new form is expected to be used primarily by small and medium charities. Like any charity the organisation’s profits and assets will be locked in for charitable purposes. Note that charity law and regulation are devolved: similar legislation has been passed in Scotland, but not yet in Northern Ireland.

Industrial and Provident Society

An Industrial and Provident Society (sometimes referred to as an I&P, or IPS) may take one of two forms:

Co-operative Society (Co-op) A Co-operative Society is a membership organisation run for the mutual benefit of its members – serving their interests primarily by trading with them or otherwise providing them with goods, services and facilities – with any surplus usually being ploughed back into the organisation, although profits can be distributed to members. A Co-operative Society may or may not be a social enterprise, depending on its activities and how it distributes its profits.

A Co-operative Society is governed by rules, which must reflect the co-operative values and principles set out by the International Co-operative Alliance. The Alliance defines a co- operative as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise.

A Co-operative Society is incorporated – and so has a separate legal personality – and must register and submit annual accounts to the Financial Services Authority (FSA) rather than Companies House. As with a company, the members’ liability is limited to the amount unpaid on shares. They have a principle of open membership and can therefore raise funds by issuing shares to the public.

They are run and managed by their members, usually through a committee of officers, similar to a company’s board, that manages on members’ behalf. However, members always have democratic control on a “one member one vote” (OMOV) basis, regardless of size of respective shareholdings, under the co-operative values and principles.

Community Benefit Society (BenCom) A Community Benefit Society (BenCom) is similar to a Co-operative Society except that it conducts business for the benefit of the community, rather than the members of the society. Indeed a BenCom must be run primarily for the benefit of people who are not members of the society and must also be in the interests of the community at large. Profits are not distributed among members, or external shareholders, but returned to the community. BenComs also often apply an asset lock, which protects their assets for the future benefit of the community. It is unusual for the BenCom to issue more than nominal share capital (eg one share valued at £1 per member. If more than nominal share capital is issued or if members make loans to the BenCom, dividends and interest paid are capped at a reasonable rate needed for the business to retain the capital it needs.

A BenCom can be established as a charity, providing it has exclusively charitable objects that are for the public benefit, allowing them to raise capital through public grants and charitable trusts. If approved, they’re known as exempt charities – reporting only to the Financial Services Authority (FSA), not the Charity Commission. Charitable BenComs must have an asset lock.

Financial Mutuals There are three other types of mutual form, not covered in detail here, that specifically exist to provide financial services. These are also registered with the FSA.

 Building Society Building Societies are mutual financial services institutions, primarily providing residential mortgage lending, but also other financial services such as other forms of lending and investment, money transmission services, banking and insurance services. They are funded substantially by their members.

 Credit Union A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of providing credit at reasonable rates, and providing other financial services to its members.

 Friendly Society A friendly society is a voluntary mutual organisation whose main purpose is to assist members financially during sickness, unemployment or retirement, and to provide life assurance.

You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. Visit www.nationalarchives.gov.uk/doc/open-government-licence, write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected].

This publication is also available on our website at www.bis.gov.uk

Any enquiries regarding this publication should be sent to:

Department for Business, Innovation and Skills 1 Victoria Street London SW1H 0ET Tel: 020 7215 5000 If you require this publication in an alternative format, email [email protected], or call 020 7215 5000. URN 11/1399

0BGuide to Legal Forms

1BUnincorporated legal forms:

3BSole Trader
4BUnincorporated Association
5BPartnership
6BLimited Partnership
7BTrust

2BIncorporated legal forms

8BLimited Company
9BLimited Liability Partnership (LLP)

11BCo-operative Society (Co-op)
12BCommunity Benefit Society (BenCom)
10BFinancial Mutuals

RR-F4/Business and the Business Environment/Module Booklet/Harvard_Referencing.pdf

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ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Harvard Referencing and Citation Guidelines

Referencing:

This is a method used to demonstrate to the assessors that a learner has conducted a thorough

and appropriate literature search. Equally, referencing is an acknowledgement that you have

used the ideas and written material belonging to other authors in your own work. As with all

referencing styles, there are two parts: Citing and the Reference List.

Referencing list format:

This is your list of all the sources that have been cited in the assignment. The list is inclusive showing books, journals, etc., listed in one list, not in separate lists according to source type. The list should be in Alphabetical Order by author/editor/company name, etc. (No bullet

points or numbering)

PRINTED/PUBLISHED SOURCES

Book: by one Author

Author (surname), Initials. (Year) Title of book (Italic). Edition. (only include this if not the first edition) Place of publication (this must be a town or city, not a country): Publisher. Reference List: Where 1st edition

Baron, D. P. (2008) Business and the Organisation. Chester: Pearson. Where 3rd edition Redman, P. (2006) Good essay writing: a social sciences guide. 3rd ed. London: Open University in assoc. with Sage. In text reference:

According to (Baron, 2008) organization structure … Leading social scientist (Redman, 2006; Baron, 2008; Smith, 2008) have noted … Book: by two, three authors The required elements for a reference are: Author, Initials.(Year) Title of book. Edition (only include this if not the first edition). Place: Publisher.

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Reference List: Barker, R., Kirk, J. and Munday, R.J. (1988) Narrative analysis. 3rd ed. Bloomington: Indiana University Press. In text reference for the above examples:

A new theory (Barker and Munday, 1988) has challenged traditional thinking … Book: by four or more authors Author (surname), Initials. et al (Year) Title of book. Edition (only include this if not the first edition). Place: Publisher. Reference List:

Grace, B. et al. (1988) A history of the world. Princeton, NJ: Princeton University Press. In text reference for the above examples: Leading business fellows Grace et al (1988) noted that… Foreign Book Author (surname), initial. (Year) Title of Book [either as given or an English translation in square brackets] Place of publication Publisher Language of translation in round brackets Reference List: Borges, J. L. (1995) [Ficciones] Madrid: Alianza Editorial.

Book: Translated Author (surname), Initials. (Year) Title of book. Translated from (language) by (name of translator) Place of publication: Publisher.

Canetti, E. (2001) The voices of Marrakesh: a record of a visit. Translated from German by J.A.Underwood. San Francisco: Arion.

Multiple Books by same Author published in the same year Author (surname), Initals.(Year a/b/c) Title of book. Place: Publisher.

Reference List: Soros, G. (1966a) The road to serfdom. Chicago: University of Chicago Press. Soros, G. (1966b) Beyond the road to serfdom. Chicago: University of Chicago Press. In text reference for the above examples:

Soros (1966a) mentioned in his …………… According to Soros (1966b) modern literature……….

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Chapter of edited book or Secondary reference for Book and Journal

When an author refers to another author’s work and the primary source is not available

Chapter author(s) surname(s) and initials. Year of chapter. Title of chapter followed by In: Book editor(s) initials and surnames with ed. or eds. after the last name. Year of book. Title of book. Place of publication: Publisher. Chapter number or first and last page numbers followed by full-stop.

References List:

Smith, J. (1975) “A source of information.” In: W. Jones, ed. (2000). One hundred and one ways to find information about health. Oxford: Oxford University Press. Ch. 2. Samson, C. (1970) “Problems of information studies in history.” In: S. Stone, ed. (2002). Humanities information research. Sheffield: CRUS, pp. 44-68. In text reference for the above examples: (Smith, 1975) (Samson, 1970)

N.B. You are advised that secondary referencing should be avoided wherever possible and you should always try to find the original work

Journal Articles

Author (surname), Initials. (Year) Title of article. Full Title of Journal, Volume number (Issue/Part number), Page number(if single page then use ‘p’ if more than one page use ‘pp’) References List:

Boughton, J.M. (2002) The Bretton Woods proposal: an in-depth look. Political Science Quarterly, 42(6), pp.564-78.

Foreign Journal

Author (surname), initials. (Year) Title of article [square brackets] Journal title Edition Page number Language of translation (round brackets) References List:

Caballero, D. (2003) [Policing without borders] Cambi16. 1(668) pg. 24 (in Spanish)

Report

Author (surname), initials. (Year) Title of report (underline or italicise) Publisher Report code and number (in brackets) References List:

Dearing, R. (1996) Review of qualifications for 16 – 19 year olds: quality and rigour in A Level examinations. London: SCAA Publications (COM/96/467)

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Annual Report:

Corporate author, Year of publication. Full title of annual report (if available), Place of Publication: Publisher.

Marks & Spencer (2004) The way forward, annual report 2003-2004, London: Marks & Spencer. For an e-version of an annual report. The required elements for a reference are: Author or corporate author, Year. Title of document or page, [type of medium]Available at: include web site address/URL(Uniform Resource Locator)[Accessed date]

Marks & Spencer (2004) Annual report 2003-2004. [Online] Available at: http://www- marks-and-spencer.co.uk/corporate/annual2003/[Accessed 4 June 2005]. Theses Author (surname), initials. (Year) of submission. Title of theses (underline or italicise) Degree statement Degree-awarding body References List:

Hounsome, I. W. (2001) Factors affecting the design and performance of flexible ducts in trench reinstatements. Unpublished Ph.D. thesis. Napier University.

Newspaper

Article with author

Author (surname), initials. (Year) Article Title (underline or italicise) Name of Newspaper Date (day, month, year) Page number References List:

Ward, L. (2004) Diploma plan to reward lower and higher abilities. The Guardian.18th February, p.4.

Article without an author

Title of publication Year of publication (in brackets) Title of article (underline or italicise) Day and Month Page number References List:

The Guardian (2004) HSBC CEO has come down at last. 23rd November, p. 10.

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ELECTRONIC SOURCES

Electronic Book (e-book)

Author (surname), initials. (Year) Title of book (underline or italicise) Name of e-book supplier [Online] Available at: URL (Date accessed) References List:

Krug, B. and White, S. E. (2004) EBay secrets: how to create Internet auction listings that make 30% more money while selling every item you list. Amazon [Online]. Available at: http://www.amazon.com/exec/obidos/tg/detail/ (Accessed: 16 August 2004).

Articles in Electronic Journal

Author (surname), initials. (Year) Title of article (in quotation marks) Title of journal (underline or italicise) Volume, issue, page numbers Database Name [Online] Available at: URL of collection (Date accessed). References List:

Haliday, J. (2004) 'Ford dealers test custom cable ads', Advertising age,75 (42), pg. 6. Proquest [Online]. Available at: http://proquest.umi.com/ (Accessed: 23 November 2004).

Article in Internet Journal Database

Author (surname), initials. (Year) Title of article (underline or italicise) Title of Journal (underline or italicise) [Online] Volume, issue Available at: URL of web page (Date accessed). References List:

Lloyd, J. (2001) Blessed are the pure in heart: globalisation. New Statesman, 23 April [Online]. Available at: http://www.findarticles.com/p/articles(Accessed: 23 November 2004).

Online Material in the Internet without Date

Author (surname), initials. (Year) Title of article (underline or italicise) [Online], issue [Online] Available at: URL of web page (Date accessed).

References List:

Lloyd, J. (No Date) Blessed are the pure in heart: globalisation [Online]. Available at: http://www.findarticles.com/p/articles (Accessed: 23 November 2004).

Online Material from Internet without Author’s Name

Name of the Organisation, (Year) Title of article (underline or italicise) [Online] Available at: URL of web page (Date accessed).

References List: Marks & Spencer (2010) Marks and Spencer’s Corporate Strategy [Online]. Available at: http://www.m&s.co.uk/corporate/ (Accessed: 23 November 2004)

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Name of sender and email address, (Year) Message or subject title from posting line. [type of medium] Recipient's name and email address. Date sent: Including time. Available at: URL (e.g. details of where message is archived). [Accessed date].

Jones, P. ([email protected]), (2005) Mobile phone developments. [email] Message to R. G. Schmit ([email protected]). Sent Monday 7 June 2005, 08:13. Available at: <http://gog.defer.com/2004_07_01_defer_archive.html> [Accessed 7 July 2005]. N.B: Permission should be sought before these sources are quoted. Copies of such correspondence should be kept, as these may need to be submitted as an appendix in an academic submission

Images from the Internet

Author (surname), initials. (Year) Title of image (underline or italicise) [Online image] Available at: URL (Date accessed) References List:

Marshall, J. (2000) Cathedral clock. [Online image]. Available at: http://www.westminstercathedral.org.uk/art/art_cathclock.html (Accessed 23 November 2004).

OTHER SOURCES

Computer Programme

Author (surname), initials. (Year) Title of programme (underline or italicise) Version (in brackets) Form, i.e. Computer programme [in square brackets] Availability, i.e. distributor, address, order number (if given)

References List:

Sanders, B. and William, B. (2001) Java in 2 semesters. (version 2) [computer programme] Microsoft Inc. New York.

Atlas

As for books, using the title page to find the information

References List:

The times atlas of the world (2004) London: Times Books.

Video / Film

Title of programme/film (underline or italicise) Year of distribution (in brackets) Director [Videocassette] Place of distribution: distribution company

References List

All about Eve (1977) Directed by Joseph Mankiewiez [Film]. United States: Twentieth Century Fox.

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Television programme Title of programme (underline or italicise) Year of publication (in brackets) Name of channel Date of transmission (day/month/time)

References List

Coronation Street (2004) ITV1, 25 November. 19.00hrs.

Audiocassette/CD/DVD

Author (if available, if not use title first) Year of publication (in brackets) Title of recording (underline or italicise) [Audiocassette] Place of publication: publisher. References List

Buenos: world Spanish (1995) [Audiocassette or CD or DVD]. London: BBC Books.

QUOTATIONS AND CITING INSIDE THE TEXT

Citation: When you use another person’s work in your own work, either by referring to their ideas, or by including a direct quotation, you must acknowledge this in the text of your work. This acknowledgement is called a citation. It is important that information taken from another author’s work is properly cited and referenced, giving credit to the original author. This includes the use of direct quotations as well as summaries, paraphrased information, statements and conclusions. If you do not cite information in the correct way you will be accused of plagiarism. This allows the reader to find the source of all the ideas including direct quotations that are presented in your work in the list provided in the Reference List. The information given at this point should be the author, and the date of the publication. The aim is to keep it short so that it does not detract from the text. There are a range of ways of presenting this and situations that might dictate the style.

You can incorporate references and quotations in a number of ways. The following examples use the Harvard Referencing.

Short quotations of a sentence or two are enclosed with quotation marks (“…”) and included in the main text.

Short Quotation

In this example, you are making a direct quote. Up to two lines can be included in the body of the text and must include the page number.

Smith (2003, p. 11) states that “Harvard referencing has to be done accurately”

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Longer Quotation

This should be indented in a separate paragraph. If part of the quotation is omitted, then this can be indicated by three dots.

Cottrell (1999, p. 10) in discussing plagiarism states that, plagiarism is using the work of others without acknowledging your sources of information or inspiration. This includes: using words more or else exactly as they……….

N.B: Longer quotations are separated from the text, placed in their own paragraph and do not need to be enclosed in quotation marks. Avoid long quotations as they will be picked up by (Turnitin) as plagiarism. Long words for quotation should be avoided but it is acceptable to include them if they are presented in the following way.

Citations (inside the text)  If the originator’s name occurs naturally in the sentence, the year of publication

should follow in brackets. Example

Smith (2003) found that…or, In a recent study Smith (2003) argued that…

 If the author’s name would not naturally be included in the sentence add the author’s

name and year of publication in brackets i.e. Example

Management theories have become much more diverse (Anderson, 1996)

 For publications by two authors:

Example

In a recent study (Smith & Jones, 2003) it was argued that…

 If you are referring to a particular page or section of a work and the author’s name

would naturally be included in the sentence the date and page numbers follow in brackets i.e.

Example

In a recent study Smith (1996, p.26) argued that….

@ICTM PAGE 9 OF 9

 If the author’s name will not normally be included in the sentence all information is given in brackets i.e.

Example

In a recent study (Smith, 1996, p.26) it was argued that…

 In cases where the name of the author cannot be identified, the item should be referred to by title:

Example

Figures in a recent survey (Tourism trends, 2003. p. 12) showed that…

 In cases where the date of an item cannot be identified, the item should be cited:

Example

The earliest report (Smith, no date, p. 231) showed that…

 If the author and date are unknown:

Example

 When you refer to a corporate publication e.g. a company report, use the Company

Name: Example

A survey (Tourism trends, no date) showed that…

The recession affected………..(Hanson Trust plc, 1990)

RR-F4/Business and the Business Environment/Module Booklet/Unit 1 BBE SoW - Feb 18.pdf

Page 1 of 5

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT Pearson BTEC HND in Business (RQF)

Unit 1 Business and the Business Environment Scheme of Work

Session: February 2018

This unit is aimed at achieving the following learning outcomes: LO1: Explain the different types, size and scope of organisations LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure. LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations. LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors.

Programme Title: TNA67 Pearson BTEC HND in Business

Level:

Unit number and Title Unit 1 Business and the Business Environment

Unit Type Core

Level 4

Unit Level and Credit Value Level 4 15 Credit

Sessions Learning Outcomes Session Activities

Session 1 Lecture 2 hours Tutorial 2 hours

LO1: To introduce the Unit’s content and the Unit assessment

Introduction to the Unit learning outcome, Syllabus, and assignment briefing Reading, Academic Skill, citation and referencing, group formation.

Session 2 Lecture 2 hours Tutorial 2 hours

LO1: Explain the different types, size and scope of organisations and their legal structures

Different types of organisations: Profit and not for profit and non-government

organisations (NGOs).

Sample activities: Question and answer activity on types of organisations

Group activity: Question and answer activity on

different forms of business

Session 3 Lecture 2 hours Tutorial 2 hours

LO1: Explain the different types, size and scope of organisations and their legal structures Topics: Different types of organisations Legal structures associated with different forms of business

Legal structures associated with different

forms of business

Micro, small, medium-sized enterprises (SMEs).

Sample activities: Question and answer activity on types of organisations

Group activity – Legal structures associated with

different forms of business: sole traders, partnerships

and private limited companies

Session 4: Lecture 2 hours Tutorial 2 hours

LO1: Explain the different types, size and scope of organisations Topic: Size and scope of organisations

Differences between large, medium-sized and small

organisations including objectives and goals, market

share, profit share, growth and sustainability.

Global growth and developments of transnational,

international and global organisations. Differences between franchising, joint ventures and licensing. Industrial structures and competitive analysis. Sample activities: Group activity - each group compares the objectives and goals, market share, profit share, growth and

Page 2 of 5

sustainability of any two organisations Class discussion – Why do organisations go global?

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Academic writing and formative feedback.

Session 5: Lecture 2 hours Tutorial 2 hours

LO1: Explain the different types, size and scope of organisations Topic: Market Forces

Market forces and economic operations, e.g., scarcity

and choice, supply and demand, income elasticity. Stakeholders and responsibilities of organisations to meet different stakeholder interests and expectations. Group exercise on stakeholder analysis Formative Feedback

Session 6: Lecture 2 hours Tutorial 2 hours

LO2: Understand the impact of market power on an economy Topic: The various functions within an organisation

The role of marketing, finance, human resource

management and operations within an organisational

context and the interrelationships. How functions relate to overall organisation mission and objectives. Group activity – Discussion of the interrelationships of the different departments

Session 7 Lecture 2 hours Tutorial 2 hours

LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure Topic: Organisational structure

Different structures depending upon the size and scope

of the organisation, including bureaucratic and post-

bureaucratic, parent, strategic business units (SBUs),

matrix and functional levels. Organisation structures and complexities of transnational, international and global organisations. Sample activities: Question and answer activity based on group work on different structures of organisations Group work – Discussion of complexities of transnational, international and global organisations

Session 8 Lecture 2 hours Tutorial 2 hours

LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations Topic: The context of the macro environment

The application of the PESTLE framework and

how organisations need to monitor and forecast

external influences. How the macro environment influences/impacts upon business activities: the impact of the digital revolution on production and consumption; the impact of social technologies; cybersecurity; emerging BRICS markets, the global shift in economic and social power and ethical and sustainable growth. Sample activities: Question and answer activity – what are the strengths weaknesses of PESTEL analysis? Discussion on how the macro environment influences/impacts upon business activities

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Academic requirements and formative feedback.

Session 9: Lecture 2 hours

LO3: Use contemporary examples to demonstrate both the positive and negative

How organisations go through the transformation process and overcome resistance to change in response to the changing market environment.

Page 3 of 5

Tutorial 2 hours influence/impact the macro environment has on business operations Topic: The context of the macro environment

Sample activities: Question and answer based on the transformation process Group discussion – How organisations overcome resistance to change in response to the changing market environment

Session 10: Lecture 2 hours Tutorial 2 hours

LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors Topic: Frameworks for analysis

Introduction to SWOT and/or TOWS analysis and how they can assist in the decision-making process within organisations. Sample activities: Pair work – Importance of SWOT/TWOS analysis Group activity – Undertake SWOT and/or TOWS analysis of a selected organization Class discussion – Does SWOT/TWOS analysis really assist in the decision-making process within organisations? Guest speaker from the Chamber of Commerce or from a local business person

Session 11 Lecture 2 hours Tutorial 2 hours

LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors Topic: Frameworks for analysis

Key external macro factors including the competitive environment and government intervention that influence organisations and business. Sample activities: Student debate – Is government intervention good for business?

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Review of academic requirements and submission format.

Session 12 Lecture 2 hours Tutorial 2 hours

Revision Session Presentations

Reserve class to cover any missing class and Presentations

Session 13 Study week

Format feedback

Session 14 Final Assignment Submission

Page 4 of 5

http://www.bookfeeder.com/pdfbook/business-its-environment-7th-edition.pdf Burns, T. and Sinfield, S (2016), Essential Study Skills: The Complete Guide to Success at University, Los Angeles, SAGE. Palmer, A. and Harftley, B. (2011), The Business Environment. 7th Ed., Maidenhead: McGraw-Hill. Weatherley, P. and Otter, D. (Eds) (2014), The Business Environment: Themes and Issues in a Globalised World. 3rd Ed. Oxford: Oxford University Press. Worthington, I. and Britton, C. (2014), The Business Environment. 7th Ed., Harlow Pearson. Swales, J. M and Feak, C, B. (2012), Academic Writing for Graduate Students, Ann Abor, The University of Michigan. Chapters in Books Business Environment - Chapter 1 (61 pages) http://www.newagepublishers.com/samplechapter/001610.pdf Elements of Business Environment – Chapter 1 http://www.arihantbooks.com/chapterdownloads/D530.pdf Business Environment - Chapter 3 http://download.nos.org/srsec319new/319EL3.pdf Videos The Business Environment youtube https://www.youtube.com/watch?v=PCBcdk9hAF0 What is Business Environment and its types? https://www.youtube.com/watch?v=_1a1E4xx6QQ Six Common Types of Businesses https://www.youtube.com/watch?v=ITlNYlK1X0I Episode 167: The External Business Environment https://www.youtube.com/watch?v=rFUs1wYKtKI Journals: Harvard Business Review (available in ICON Library) Economist (available in ICON Library News Papers The Financial Times Business http://www.ft.com/home/uk Evening Standard Business http://www.standard.co.uk/business/

http://www.bookfeeder.com/pdfbook/business-its-environment-7th-edition.pdf

http://www.newagepublishers.com/samplechapter/001610.pdf

http://www.arihantbooks.com/chapterdownloads/D530.pdf

http://download.nos.org/srsec319new/319EL3.pdf

https://www.youtube.com/watch?v=PCBcdk9hAF0

https://www.youtube.com/watch?v=_1a1E4xx6QQ

https://www.youtube.com/watch?v=ITlNYlK1X0I

https://www.youtube.com/watch?v=rFUs1wYKtKI

http://www.ft.com/home/uk

http://www.standard.co.uk/business/

Page 5 of 5

CITY A.M. Business http://www.cityam.com/ Pearson Resources: Student Portal: HN Global Please access HN Global for additional resources support and reading for this unit. For further guidance and support on presentation skills please refer to the Study Skills Unit on HN Global. Link to: https://www.highernationals.com/

http://www.cityam.com/

https://www.highernationals.com/

RR-F4/Business and the Business Environment/Module Booklet/Unit 1 Business and the Business Environment Assignment Brief Feb 2018 - ZH.pdf

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT Pearson BTEC HND in Business (RQF)

Unit 1 Business and the Business Environment

Assignment Brief Session: February 2018

Programme title TNA67 Pearson BTEC HND in Business

Unit number and title Unit 1 Business and the Business Environment

Unit Type Core

Unit Level and Credit Value

Level 4 15 Credit

Assessor (s) Dr Reza Aboutalebi; Mr Antony Dilleen, Mr Bekhzod Klichev, Mr Christopher Ngwasiri

Issue Date 3 March 2018

Final assignment submission deadline

11-16 June 2018

Late submission deadline

18-23 June 2018

The learners are required to follow the strict deadline set by the College for submissions of assignments in accordance with the BTEC level 4–7 submission guidelines and College policy on submissions.

Resubmission deadline TBA

Feedback

Formative feedback will be available in class during the semester.

Final feedback will be available within 2 weeks of the assignment submission date.

General Guidelines

 The work you submit must be in your own words. If you use a quote or an illustration from somewhere you must give the source.

 Include a list of references at the end of your document. You must give all your sources of information.

 Make sure your work is clearly presented and that you use correct grammar.

 Wherever possible use a word processor and its “spell-checker”.

Internal verifier Prof Zakir Hossain

Signature (IV of the brief) *

[email protected] Date 1/3/18

ICON College of Technology and Management Pearson BTEC HND in Business (RQF)

mailto:[email protected]

Assignment Brief – continued

Unit 1: Business and the Business Environment (L4) Session: February 2018

Coursework Recommended Word limit: 3,000–4,000

This Unit will be assessed by assignment. You are strongly advised to read “Preparation guidelines of the Coursework Document” before answering your assignment. ASSIGNMENT

Assignment Context and Business Scenario

You have been employed as a Business Analyst by a large UK-based organisation of your choice to investigate different types and sizes of business they will have to compete with. You are required to investigate and explain three different types of organisations, their size and

classification to highlight differences between them. This should include their legal structure, size

and scope, as well as their key stakeholders.

For one of the organisations you must then explain the various functions within the business and

create an organisational chart to explain the interrelationships between different functions. You

must also explain how this would be different in the other two organisations.

This will be presented as a report to the Chief Executive Officer and should include the following:

1. Introduction to provide an overview of different types of organisations and the growth of the

international business environment (LO1).

2. An explanation of each of the chosen organisations, including: background details of the

organisation; the products and services they supply; the size and scope of the organisation; their

vision, mission and business objectives; the organisational and legal structure; and information

about their stakeholders (LO2).

3. In detail, explain the functions for one of the chosen organisations, using an organisation

chart to show how the functions interrelate and an explanation of how they relate to structure

(LO2).

4. Use contemporary examples to demonstrate both the positive and negative influence/impact

the macro environment has on business operations (LO3).

5. Determine the internal strengths and weaknesses of specific businesses and explain their

interrelationship with external macro factors (LO4).

Assignment Brief – continued

What you must do

The following tasks are required to be carried out: LO1: Explain the different types of organisations, including their size and scope Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures and explain the size and scope of a range of different types of organisations [P1, P2]. To achieve M1, you should analyse how the structure, size and scope of different organisations link to the business objectives and product and services offered by your chosen organisation. LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure. Explain the relationship between different organisational functions and how they link to organisational objectives and structure [P3]. To achieve M2, you should analyse the advantages and disadvantages of t h e interrelationships between organisational functions and the impact that they can have upon organisational structure. To achieve D1, you should provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions. (NB: To obtain D1 you must meet both M1 and M2 criteria).

LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations Using PESTLE identify the positive and negative impact the macro environment has

upon t he business operations of your chosen organisation. You should support your

answer by specific examples from your chosen organisation [P4].

To achieve M3, you should apply the PESTLE model appropriately to support a detailed analysis of the macro environment that affects the operations of your chosen organisation. LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors. Using SWOT or TOWS conduct an internal and external analysis of your chosen organisation in order to identify its strengths and weaknesses and explain how strengths and weaknesses interrelate with external macro factors [P5, P6]. To achieve M4, you should apply appropriately SWOT/TOWS analysis and justify how they influence decision-making by your chosen organisation.

To achieve D2, you should critically evaluate the impact that both mi c r o an d macro factors have upon th e business objectives and decision-making of your chosen organisation. (NB: To obtain D2 you must meet both M3 and M4 criteria).

Assignment Brief – continued

Grading Criteria

Learning Outcome Pass Merit Distinction

LO1 Explain the

different types, size

and scope of

organisations.

P1 Explain different

types and purposes of

organisations; public,

private and voluntary

sectors and legal

structures.

P2 Explain the size

and scope of a range

of different types of

organisations.

M1 Analyse how the

structure, size and

scope of different

organisations link to

the business

objectives and product

and services offered

by the organisation.

D1 Provide a critical

analysis of the

complexities of

different types of

business structures

and the

interrelationships of

the different

organisational

functions.

LO2 Demonstrate the

interrelationship of the

various functions within

an organisation and

how they link to

organisational

structure.

P3 Explain the

relationship between

different organisational

functions and how they

link to organisational

objectives and

structure.

M2 Analyse the

advantages and

disadvantages of

interrelationships

between organisational

functions and the

impact that can have

upon organisational

structure.

LO3 Use

contemporary

examples to

demonstrate both the

positive and negative

influence/impact the

macro environment

has on business

operations.

P4 Identify the positive

and negative impacts

the macro environment

has upon business

operations, supported

by specific examples.

M3 Apply appropriately

the PESTLE model to

support a detailed

analysis of the macro

environment within an

organisation.

D2 Critically evaluate

the impacts that both

macro and micro

factors have upon

business objectives

and decision-making.

LO4 Determine the

internal strengths and

weaknesses of specific

businesses and

explain their

interrelationship with

external macro factors

P5 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses.

P6 Explain how

strengths and

weaknesses interrelate

with external macro

factors

M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision- making.

Assignment Brief – continued

Relevant Information Guide to student 1. Preparation guidelines of the Coursework Document

a. All coursework must be word processed. b. Document margins must not be more than 2.54 cm (1 inch) or less than 1.9cm (3/4 inch). c. The assignment should be in a formal business style using single spacing and font size 12. d. Standard and commonly used type face such as Arial should be used. e. All figures, graphs and tables must be numbered. f. Material taken from external sources must be properly referenced using the Harvard

referencing system. g. You should provide references using the Harvard referencing system. h. Do not use Wikipedia as a reference.

2. Plagiarism and Collusion

Any act of plagiarism or collusion will be seriously dealt with according to the College regulations. In this context the definition and scope of plagiarism and collusion are presented below: Plagiarism is presenting somebody else’s work as your own. It includes copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort. Collusion is copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism or collusion will be investigated and if found to have occurred will be dealt with according to the College procedure. (For details on Plagiarism & Collusion please see the Student Handbook)

3. Submission

a. Initial submission of coursework to the tutors is compulsory in each unit of the course. b. Student must check their assignments on ICON VLE with plagiarism software Turnitin to

make sure the similarity index for their assignment stays within the College approved level. A student can check the similarity index of their assignment three times in the Draft Assignment submission point located in the home page of the ICON VLE.

c. All Final coursework must be submitted to the Final submission point into the unit (not to the Tutor). A student would be allowed to submit only once and that is the final submission.

d. Any computer files generated such as program code (software), graphic files that form part of the coursework must be submitted as an attachment to the assignment with all documentation.

e. Any portfolio for a unit must be submitted as a hardcopy to the Examination Office. f. The student must attach a tutor’s comment in between the cover page and the answer in the

case of Resubmission. 4. Good practice

a. Make backup of your work in different media (hard disk, memory stick, etc.) to avoid distress due to loss or damage of your original copy.

Assignment Brief – continued

5. Extension and Late Submission and Resubmission a. If you need an extension for a valid reason, you must request one using an Exceptional

Extenuating Circumstances (EEC) form available from the Examination Office and ICON VLE. Please note that the tutors do not have the authority to extend the coursework deadlines and therefore do not ask them to award a coursework extension. The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick.

b. Late submission will be accepted and marked according to the College procedure. It is noted that late submission may not be graded for Merit and Distinction.

c. All Late coursework must be submitted to the Late submission point into the unit (not to the Tutor). A student will be allowed to submit only once and that is the final submission.

d. Only one opportunity will be given for reassessment (resubmission) will be permitted and the assessment will be capped at Pass for the unit. In addition, no resubmission will be allowed in any component of the assessment for which a Pass grade or higher has been achieved.

e. Repeat Units – A student who has failed to achieve a Pass in both Final/Late submission and in the Resubmission must retake the unit with full attendance and payment of the unit fee. The overall unit grade for a successfully completed repeat unit is capped at Pass for that unit. Units can only be repeated once.

6. Submission deadlines

Submission deadlines Online to the ICON College VLE Final Submission date: 11-16 June 2018 Late Submission date: 18-23 June 2018

Glossary:

RR-F4/Business and the Business Environment/Support/Academic Writing 2.pdf

Academic writing skills

Writing, referencing & using electronic resources

“Care in the choice of one’s words is the respect that the mind

pays

to the instrument of its own being”

Agenda

• Writing

– What is academic writing

• Referencing

– Books

– Articles

– Others

• Electronic resources

Academic writing

• What is it all about?

Writing

• Academic writing is Formal

– No exaggeration (Not: extremely important)

– Impersonal (no use of “I am”)

– Direct to the meaning

– No final judgment!! Always allow for arguing and

accepting other opinions!!

WHAT DOES FORMAL WRITING

LOOK LIKE?

• Focus on the issue, not the writer Keeping

your writing objective and impersonal can make

it more convincing.

– It will be argued that the benefits of sales

promotion outweigh the disadvantages.

– I will argue in this assignment that ...

Choose words with precise

meanings

• Avoid words with vague meanings

– Compare:

• The writer looks at the issue

– with

• The writer examines the issue.

• The second option is more formal.

– Formal choices:

• He states … maintains … argues

– Informal choices:

• He says … talks about …

Add some style

• Writing is a very logical exercise, adding

style to it will enhance clearness and

power of convincing…

– Phrases for transition

– Phrases for emphasis

– Phrases for counterpoint

Phrases for transition

• Regarding

• Admittedly

• Consequently

• As a result

• Ultimately

• According to

• For this reason

Phrases for emphasis

• Moreover

• In fact

• Additionally

• For example

• In point of fact

• As a matter of fact

• Indeed

Phrases for counterpoint

• Conversely

• On the other hand

• However

• Nevertheless

• Notwithstanding

• Nonetheless

• Yet

• Despite

• Although

• Instead

Referencing

• What does referencing mean?

• Why should I include references in my

work?

• How do I reference my work?

What does referencing mean?

• When writing an academic piece of work

you need to acknowledge any ideas,

information or quotations which are the

work of other people. This is known as

referencing or citing.

Why should I include references

in my work?

• You should include references in order to:

– acknowledge the work of others

– provide evidence of your own research

– illustrate a particular point

– support an argument or theory

– allow others to locate the resources you have used

• And most importantly:

– avoid accusations of plagiarism

How do I reference my work?

• Your references should be consistent and

follow the same format. Various systems

have been devised for citing references,

but most Schools use the Harvard system

Referencing while writing

• References will be cited in your work in

two places: -

– 1) Where a source is referred to in the text

(Citation)

– 2) In a list (the Bibliography/List of references)

at the end of the assignment.

Citing references in the text

• Citing the author in the text

• Whenever a reference to a source is

made, its author's surname and the year

of publication are inserted in the text as

in the following examples...

Citing references in the text Cont.

– Dogs were the first animals to be

domesticated (Sheldrake, 1999).

• If the author's name occurs naturally in the

sentence the year is given in brackets .>>

– Sheldrake (1999) asserts that dogs were the

first animals to be domesticated.

Using direct quotes

• If you quote directly from a source you must

insert the author’s name, date of publication

and the page number of the quotation.

– ‘The domestication of dogs long predated the

domestication of other animals.’ (Sheldrake, 1999,

p.5).

• The page number should be given at the end of

the quote, in separate brackets if necessary, as

in the example below.

– Sheldrake (1999) asserts that the ‘domestication of

dogs long predated that of other animals.’ (p.15).

Citing works by more than one

author

• If your source has two authors you should

include both names in the text.

– Anderson and Poole (1998) note that a

‘narrow line often separates plagiarism from

good scholarship.’ (p.16).

Citing works by three or more authors

• If there are three or more authors you should

include the first named author and then add ‘et

al.’ in italics followed by a full stop. This is an

abbreviation of ‘et alia’ which means ‘and others’

in Latin.

– In the United States revenue from computer games

now exceeds that of movies (Kline et al., 2003).

Citing works by the same author written

in the same year

• If you cite two or more works written in the same year by the same author, then you must differentiate between them in both the text and your List of references by listing them as a,b,c etc.

– Natural selection can cause rapid adaptive changes in insect populations (Ayala, 1965a) and various laboratory experiments have been conducted to assess this theory (Ayala, 1965b).

Citing secondary sources

• When citing secondary sources (i.e. an author refers to a work you have not read) cite the secondary source, but include the name of the author and date of publication of the original source in the text. Only the secondary source should be listed in your references. You should only cite secondary sources if you are unable to read the original source yourself.

– Sheff (1993) notes that Nintendo invested heavily in advertising (cited in Kline et al.,2003, p.118).

Writing a Bibliography or List of

references

• The List of references appears at the end of

your work and gives the full details of everything

that you have cited in the text in alphabetical

order by the author’s surname

Printed books

• Printed books should be referenced using the following format and punctuation.

– Author/editor’s surname and initials.,

– (Year of publication).

– Title of book: including subtitles. (in italics or underlined)

– Edition. (if applicable)

– Place of publication: (followed by a colon)

– Name of publisher.

• Reference to a book with one author

– Sheldrake, R., (1999). Dogs that know when

their owners are coming home: and other

unexplained powers of animals. London:

Arrow Books.

• Reference to a book with two authors

– Anderson, J. and Poole, M., (1998).

Assignment and thesis writing. 3rd ed.

Chichester: John Wiley & Sons.

Print journals and newspapers

• Print journals should be referenced using the following format and punctuation. – Author's surname, initials., (or Newspaper title where

there is no author,)

– (Year of publication).

– Title of article.

– Name of journal. (in italics or underlined),

– Date of publication (if applicable e.g. 18 June)

– Volume number (in bold) (if applicable)

– (Part/issue number), (if applicable)

– Page numbers.

Example

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. 332 (7552), 1224-1225.

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. Vol. 332, No. 7552, pp.1224-1225

E-journal article accessed via

website on the open Internet

• Britton, A., (2006). How much and how often

should we drink? British Medical Journal. 332

(7552), 1224-1225. [online] Available

from:http://bmj.bmjjournals.com/cgi/content/full/3

32/7552/1224 [Accessed 2 June 2006].

http://bmj.bmjjournals.com/cgi/content/full/332/7552/1224

Websites, web pages

• Websites, web pages and PDF documents downloaded from the Internet should be referenced using the following format and punctuation. – Author/editor’s surname, initials., or name of owning organization

e.g. University of London)

– (Year of publication).

– Title. (in italics or underlined)

– Edition. (if applicable, e.g. update 2 or version 4.1)

– [online]

– Place of publication: (if known)

– Name of publisher. (if known)

– Available from: <URL>

– [Accessed (enter date you viewed the website)].

References

– Holland, M., (2005). Citing references. [online] Poole:

Bournemouth University. Available from:

<http://www.bournemouth.ac.uk/academic_services/d

ocuments/Library/Citing_References.pdf> [Accessed

2 June 2006].

– University of Westminster, (2007). Harry Potter fans to

cast spell over Westminster. [online] London:

University of Westminster. Available from:

<http://www.wmin.ac.uk/page-14428> [Accessed 24

July 2007].

RR-F4/Business and the Business Environment/Support/Academic Writing Skills 1.pdf

Dr Marco Angelini,

UCL Transition Programme

With thanks to Dr Colleen McKenna for kind

permission in reproducing her material in this

presentation

Approaches to critical reading and writing

Outline for today

 Introduction

 Considering your writing practices

 Reading as part of writing

 Writing as part of thinking

 Planning

 Organising written work

 Looking at text

 Finding time to write

What type of writer are you?

The diver

The patchworker

The architect

The grand planner

Identifying your writing style

Previous writing experiences …

Reading as part of writing

Critical reading (and how it benefits your writing)

 Helps you determine what is and

what is not a robust piece of

research and writing in your field

 Helps you identify where existing

research has left a gap that your

work could fill

 Attention you pay to writing of others

helps you become more self-aware

of your own written work:

– Sufficient evidence to back up claims;

argumentation/reasoning; becoming

alert to your assumptions and how they

affect your claims

 Wallace and Wray, 2006

Critical reading?

How do you go about

reading an academic text

in your field?

Critical reading? Some possible approaches

How do you go about reading an

academic text?

 Use parts of the text: abstract,

contents, index, sub-headings,

graphs, tables, introduction and

conclusion

 Skim to get the gist of the argument

 Read with questions in mind

Critical reading? Some possible approaches

 Make notes/mind map/ use

highlighter

 Write a summary in your own words

 Write a brief critical response

 Keep note of bibliographic details

Critical reading/ critical writing

Handout – p. 12-13 Wallace and Wray

 As a critical reader, one evaluates

the attempts of others to

communicate with and convince

their target audience by means of

developing an argument;

 As a writer, one develops one's own

argument, making it as strong and

as clear as possible, so as to

communicate with and convince

one's target audience.

– Wallace and Wray, 2006

Free writing

 Way of using writing as a tool for

thinking

 Allows you to write without

constraints.

To do it –

Write continuously, in complete

sentences, anything that occurs to

you.

Free writing

Please write down EITHER

1. An idea / theme from your field

2. Use the topic:

‘what I enjoy about writing…’

Use a free writing technique to write

anything at all that occurs to you

about this topic.

This writing will not be shown to

anyone else.

Planning (Sharples)

 Plans should be flexible

 Through the writing process a deeper

understanding of topic is gained – thus,

planning is increasingly out of step as

writing develops:

– “The act of writing brings into being ideas

and intentions that the writer never had at

the start of the task or that could not be

expressed in any detail.”

Plans

 Free writing

 Notes/sketches

 Idea lists

– Ideas on post-it notes

 Mind map

 Skeleton paper with

sub-headings

 Outline

 Draft text

 Adapted from

Sharples, 1999

 What techniques do you use to

develop ideas in your writing

and/or signpost an argument?

Developing/sustaining argument

 ‘proving’ the thesis statement or

controlling argument

 Signposting argument (Giving the

reader cues; anticipating/referring

back)

 Using words which signal transition or

development – “However”,

“Nevertheless”, “Thus”, “Therefore”,

“Despite”

 Illustrating theoretical positions with

concrete examples

 Generalising from a particular set of

findings if possible

 Using subheadings

 Using/responding to counterarguments

and examples

 Anticipate next paragraph at end of

previous one

Signposting and making transitions

 Links between paragraphs – pick up point from the end of a paragraph at the start of next one.

 Conjunctions to express different kinds of meaning relations

– Temporal: when, while, after, before, then

– Causative: because, if, although, so that, therefore

– Adversative: however, alternatively, although, nevertheless, while

– Additive: and, or, similarly, incidentally

 Signposting through pronouns - this, these, those, that, they, it, them

 Adverbs: Firstly, secondly, etc

 Illustrative: For example, in illustration, that is to say,

Signalling conclusions

Citation

Examples of Citing

• The hip bone is confirmed to be connected to the thigh bone (Funny Bones, 1989).

• The cytoskeletal network acts like the strong bars within a scaffolding (Alberts et al., 1998)

• Slavic-Smith (2006) postulated three classifications for nucleoli in neurons

• It was shown in 2006 by Take That, that a successful comeback tour was possible [1].

Bibliographies

 Alberts, Bray, Johnson, Lewis,

Raff, Roberts & Walter. Essential

Cell Biology, 1st Edition, Garland,

1998

 Dickson, B (2002) Molecular

Mechanisms of Axon Guidance.

Science 298 1959-1964

 [1] www.bbc.co.uk/news

Writing tips

 Write a sentence for each paragraph you want

to write – you can then move them about easily

to form thread of argument

 Index tag the main points you want to use in

your references, so they can be found easily

while writing

 Write the introduction last

 Write the conclusion first

 Read what you have written aloud to see if it

sounds right

 Find best environment for you – when and

where do you work best

 Take a break before trying to do your final check

 Use a writing checklist

Making time for writing

 Write throughout the course

 Do free writing as frequently as

possible

 Snack and binge writing (Rowena

Murray)

 Writing groups

 Don’t wait until you feel ‘ready’ to

write…

Writing for learning

 Read regularly in the field. Find writers whose work you admire and study what and how they do things.

 View writing as part of a process rather than a product

 Find models of good writing in your discipline – analyse it; ask what works and what doesn’t; consider writing style; vocabulary; techniques – metaphor; explanation; signposting

 Reflect on your own writing practices

 Keep a notebook or learning journal

 Explore free writing

To sum up…

1. Asked ‘what type of writer are

you’? What are your writing

practices?

2. What are your approaches to

reading? How might you link

reading and writing?

3. Free writing as a means of

generating ideas

4. Thought about structure of the

essay at the paragraph level and

the overall level

5. Tried to relate these ideas back

to the outline.

Reference

Academic Writing Skills

Presentation - UCL https://www.ucl.ac.uk/transition/study-

skills.../Academic_Writing_Skills_11.pptx

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwiluJHzxJHXAhVBBBoKHRQjCzoQFggmMAA&url=https%3A%2F%2Fwww.ucl.ac.uk%2Ftransition%2Fstudy-skills-resources%2FAcademic_Writing_Skills_11.pptx&usg=AOvVaw3tPjWzxu-gowAkd1JhDCUx

RR-F4/Business and the Business Environment/Support/BBE - Lecture 1 Introduction.pdf

Lecture 1: Introduction of the Unit

Prepared by: Dr Gilbert Zvobgo

ICTM

 Aim of Session: To introduce the Unit’s content and the Unit

assessment

 1. Ground Rules

 2. Going over the Assignment Brief, including the assessment

criteria of the Unit

 3. Going over the Scheme of Work so that students see how

they could allocate their time wisely.

 4. Going over the Unit Specification so that students have an

overview of the syllabus (also available on ICON VLE).

 5. Library visit to help students check available books in their

Unit and to suggest those they want the College to purchase.

 6. Ask students to register with HN Global at:

Pearson Resources: Student Portal: HN Global (RQF)

https://www.highernationals.com/

 7. Help students understand the importance of academic

skills, academic writing, and referencing (citation and

references).

RR-F4/Business and the Business Environment/Support/BBE - Lecture 1 Material.pdf

24/4/17: April 2017 Semester Aim of Session 1: To introduce the Unit’s content and the Unit assessment The aim of this first lecture is to cover the following with the students: 1. The Assignment Brief, including the assessment criteria of the new Unit 2. To go over the Scheme of Work so that students see how they could allocate their time wisely. 3. To go over the Unit Specification so that students have an overview of the syllabus. 4. Library visit to help students check available books in their Unit and to suggest those they want the College to purchase. 5. To help students understand the importance of academic skills and referencing (citation and references).

RR-F4/Business and the Business Environment/Support/BBE - Lecture 11.pdf

Determine the internal strengths and weaknesses of

specific businesses and explain their interrelationship

with external macro factors.

Session 10 (LO4): Key external macro factors including the competitive environment and government intervention that influence organisations and business.

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the session students should be able to:

 Understand how the key external macro factors

including the competitive environment and government

intervention influences a business

 Microenvironment

 Includes those factors over which the business has

some control

 Made up of elements created by the people within the

business

 The internal environment is determined by the

interactions of the people within it

◦ Over time these forces interact with each other to give each business its unique characteristics

Comprised of following Components:

 Remote environment

 Industry environment

 Operating environment

Political Factors

Political constraints on firms:

• Fair-trade Decisions

• Antitrust Laws

• Tax Programs

• Minimum Wage Legislation

• Pollution and Pricing Policies

• Administrative jawboning

 Government acts as a watchdog over

business

 Provides direction in areas such as:

 antitrust,

 monetary policy,

 defense,

 human rights

 environmental matters

1. Prime interest rates

2. Inflation rates

3. Trends in the growth of the gross

national product

4. Unemployment rates

5. Globalization of the economy

6. Outsourcing

Present in the external environment:

 Beliefs & Values

 Attitudes & Opinions

 Lifestyles

Developed from:

 Cultural conditioning

 Ecological conditioning

 Demographic makeup

 Religion

 Education  Ethnic conditioning.

 Technological forecasting helps protect and

improve the profitability of firms in growing

industries.

 It alerts strategic managers to

impending challenges and

promising opportunities.

 The key to beneficial forecasting of technological

advancement lies in accurately predicting future

technological capabilities and their probable

impacts.

 Ecology refers to the relationships among human

beings and other living things and the air, soil, and

water that supports them.

 Threats to our life-supporting ecology caused

principally by human activities in an industrial

society are commonly referred to as pollution

 Loss of habitat and biodiversity

 Environmental legislation

 Eco-efficiency

 Porter propelled the concept of industry environment into the foreground of strategic thought and business planning.

 The cornerstone of Porter’s work first appeared in the Harvard Business Review, in which he explains the five forces that shape competition in an industry.

 Porter’s well-defined analytic framework helps strategic managers to link remote factors to their effects on a firm’s operating environment.

 The essence of strategy formulation is coping with competition.

 Intense competition in an industry is neither coincidence nor bad luck.

 Competition in an industry is rooted in its underlying economics, and competitive forces exist that go well beyond the established combatants in a particular industry.

 The corporate strategists’ goal is to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favor.

 Threat of Entry

 Economies of Scale

 Product Differentiation

 Capital Requirements

 Cost Disadvantages Independent of Size

 Access to Distribution Channels

 Government Policy

 Barriers to Entry:  economies of scale ◦ decrease in per unit costs as volume of

goods/services produced increases

 product differentiation ◦ uniqueness in quality, price, design,

brand image, or customer service that gives a product an edge over the competition

 capital requirements ◦ dollars needed to finance equipment supplies,

advertising, R&D, and the like necessary to start

 government regulation ◦ may bar or severely restrict potential new

entrants to an industry

A supplier group is powerful if:  It is dominated by a few companies and is more

concentrated than the industry it sells to  Its product is unique or at least differentiated, or if it has

built-up switching costs  It is not obliged to contend with other products for sale to

the industry  It poses a credible threat of integrating forward into the

industry’s business  The industry is not an important customer of the supplier

group

 Bargaining Power of Suppliers ◦ often controls how much they can :

 raise prices above their costs

 reduce the quality of goods and services

◦ is increased by patents and copyrights

◦ is increased by supplier-customer alliances

 which are advocated by total quality programs

A buyer group is powerful if:

 It is concentrated or purchases in large volumes

 The products it purchases from the industry are standard

 The products it purchases from the industry form a component of its product and represent a significant fraction of its cost

 It earns low profits

 The industry’s product is unimportant to the quality of the buyers’ products or services

 The industry’s product does not save the buyer money

 The buyers pose a credible threat of integrating backward

 Potential Effects of Customers ◦ they may drive down prices

◦ push for more or higher-quality products

◦ increase competition among sellers by playing one against each other

 Exhibit Bargaining Power to the Extent that: ◦ they purchase a large volume relative to the

supplier’s total sales

◦ the product/service represents a significant expenditure by the customer

◦ they pose a realistic threat of backward integration, for example: the purchase of one or more of its suppliers

◦ they have readily available alternatives for the same services/products

 By placing a ceiling on the prices it can charge, substitute products or services limit the potential of an industry

 Substitutes not only limit profits in normal times but also reduce the bonanza an industry can reap in boom times

 Substitute products that deserve the most attention strategically are those that are

◦ subject to trends improving their price-performance trade-off with the industry’s product or

◦ produced by industries earning high profits

 Goods/Services ◦ that can easily replace the firm’s goods/services

◦ I.e. Starbucks introduced a new drink called Frappuccino. It is a cold drink that can substitute for the more traditional hot coffee drink

Intense rivalry occurs when:

 Competitors are numerous or are roughly equal

 Industry growth is slow, precipitating fights for market

share that involve expansion

 The product or service lacks differentiation or switching

costs

 Fixed costs are high or the product is perishable, creating

strong temptation to cut prices

 Capacity normally is augmented in large increments

 Exit barriers are high

 Rivals are diverse in strategy, origin, and personality

 An industry is a collection of firms that offer similar

products or services.

 Structural attributes are the enduring characteristics

that give an industry its distinctive character.

 Concentration refers to the extent to which industry

sales are dominated by only a few firms.

 Barriers to entry are the obstacles that a firm must

overcome to enter an industry.

1. How do other firms define the scope of their

market?

2. How similar are the benefits the customers derive

from the products and services that other firms

offer? The more similar the benefits of products or

services, the higher the level of substitutability

between them.

3. How committed are other firms to the industry?

Also called competitive or task environment

 Includes competitor positions and customer profiling

based on the following factors:

◦ Geographic

◦ Demographic

◦ Psychographic

◦ Buyer Behavior

 Also includes suppliers & creditors and HRM

Access to personnel is affected by 4 factors:

 Firm’s reputation as an employer

 Local employment rates

 Availability of people with the needed skills

 Its relationship with labor unions.

 Differing external elements affect different strategies at different times and with varying strengths

 Only certainty is that the effect of the remote and operating environments will be uncertain until a strategy is implemented

 Many managers, particularly in less powerful firms, minimize long-term planning

 Instead, they allow managers to adapt to new pressures from the environment

 Absence of strong resources and psychological commitment to a proactive strategy effectively bars a firm from assuming a leadership role in its environment

 Importance and Effect of Competitors ◦ competitors are an important day-to-day

environmental force facing organisations

◦ rivalry among competitors leads to

 price cutting

 advertising promotions

 enhanced customer service or warranties

 improvements in product or service quality

 Activity for your critical thinking:

Each student chooses one of the above external

influences over business and prepare a speech within 5

minutes, telling why or how it may influence business

activity.

RR-F4/Business and the Business Environment/Support/BBE - Lecture 2 (1).pdf

01/05/2017

Different types, size and scope of organisations and

their legal structures

Session 2 (LO1): Different types, size and scope of

organisations

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the session, students should be able to

understand the different types of organisations (LO1):

 Profit and not for profit and non-government

organisations (NGOs).

 Small businesses - micro, small, medium-sized

enterprises (SMEs).

01/05/2017

Profit organisations

To be discussed in LO2

Non-profit organisations

 What makes an organisation a non-profit has to do with

purpose, ownership, and public support.

 These elements create:

◦ A mission that focuses on activities that benefit society and whose goal is not primarily for profit

◦ public ownership where no person owns shares of the corporation or interests in its property

◦ income that must never be distributed to any owners but is recycled back into the non-profit corporation's

public benefit mission and activities.

01/05/2017

Profit and Non-profit organisations

 What makes an organisation a non-profit has to do with

purpose, ownership, and public support.

 These elements create:

◦ A mission that focuses on activities that benefit society and whose goal is not primarily for profit

◦ public ownership where no person owns shares of the corporation or interests in its property

◦ income that must never be distributed to any owners but is recycled back into the non-profit corporation's

public benefit mission and activities.

 In contrast, a for-profit business seeks to generate income for

its founders and employees. Profits can be shared with

owners, employees, and shareholders.

Characteristics of traditional non-profit organisations:

 Purpose: To make a profit.

 Ownership: Is owned by the public. It belongs to no private

person, and no one person controls the organisation

 Control: Control of a non-profit lies with a governing board of

directors or trustees. The responsibility of that board is to see

that the organisation fulfils its purpose.

 Accountability: Are accountable to the public and must file

annual information returns with the government - regarding its

finances.

01/05/2017

Not for profit and non-government organisations (NGOs).

 Institutions that conduct their affairs for the purpose of

assisting other individuals, groups, or causes rather than

garnering profits for themselves.

 Are tax-exempt businesses that benefit the good of the public.

 Have no shareholders; do not distribute profits in a way that

benefits members, directors, or other individuals in their

private capacity.

Types of Not for profit : Charitable Organisations

These include a wide variety of institutions involved in

 Poverty assistance (soup kitchens, counselling centres,

homeless shelters, etc.)

 Religion (churches and their ancillary possessions, such as

cemeteries, radio stations, etc.);

 Science (independent research institutions, universities);

health (hospitals, clinics, nursing homes, treatment centres)

 Education (libraries, museums, schools, universities, and

other institutions)

 Promotion of social welfare;

 Preservation of natural resources

 Promotion of theatre, music, and other fine arts.

01/05/2017

Types of Not for profit : Advocacy Organisations

These groups attempt to influence legislative process and/or

political process, or otherwise champion particular positions

 May call themselves 'social welfare organisations' or perhaps

'political action committees.

 Not all advocacy is lobbying and not all political activity is

political campaign activity. Some of this type of programme

can be accomplished through a charitable organisation, but

that outcome is rare where advocacy is the organisation's

primary undertaking.

Types of Not for profit : Social/Recreational Organisations

 Examples: Country clubs, hobby and garden clubs, sports

tournament organisations all can qualify as non-profit

organisations, provided that they adhere to basic guidelines of

net earnings distribution, etc.

 Unlike other tax-exempt organizations, however, their

investment income is taxable.

Satellite organisations:

 Organisations are deliberately organised as auxiliaries or

subsidiaries of other organizations.“

 Examples: cooperatives, retirement and other employee

benefit funds.

01/05/2017

Benefits of non-profit organisations:

 Success depends on its reputation in community

 Customers can enhance or damage this reputation,

depending on level of satisfaction with service they receive.

 Meeting and exceeding expectations of donors, volunteers

and clients ultimately results in increased donations of

financial and human resources to the agency.

Errors made by non-profit organisations:

 Not listening to donor expectations

 Unwarranted assumption of a donor's willingness to

contribute

 Lack of follow-up after initial contact

 Inadequate research on potential donors and their ability to

contribute Inability to close presentation with donor

commitment

 Neglecting to establish rapport with potential donors prior to

solicitation

 Neglecting to tailor solicitation to individual donors

 Approaching potential donors without knowledge of how

donations impact them in the realms of tax deductions, etc.

01/05/2017

Definition of Terms

Small business

 An independent business managed by its owner or

part owners and having a small market share either

by number of employees or turnover.

www.planningportal.gov.uk/england/government/en/1

115310689529.html

Small to medium-sized enterprise (SEM)

Statistical definitions of an SME use one or

more of three defining measurements:

 number of employees;

 turnover;

 size of the balance sheet.

http://www.google.co.uk/url?sa=X&start=0&oi=define&q=http://www.planningportal.gov.uk/england/government/en/1115310689529.html&usg=AFQjCNGNxsSp93obzBnUPEkdl_nCiXztMw

01/05/2017

Small to medium-sized enterprise (SEM)

Department of Business Enterprise and Regulatory

Reform:

 Micro firm: 0-9 employees;

 Small firm: 0-49 employees (includes micro);

 Medium firm: 50-249 employees;

 Large firm: over 250 employees.

EU (1996):

An enterprise which employees fewer than 250 persons and

which has an annual turnover not exceeding EUR 50 million,

and/or an annual balance sheet of not exceeding UER 43

million (Article Two)

Table 1: Revised European SME definition

 Enterprise category Headcount Turnover (€)

 Micro <10 <2 million

 Small >50 <10 million

 Medium-sized <250 <50 million

Source: http://europa.eu/eur-lex/pri/en/oj/dat/2003/l_124/l_12420030520en00360041.pdf

01/05/2017

Reasons for SEMs revival in the UK

 Growth of the service sector

 Information technology

 Flexible specialisation and networks

 Subcontracting and fragmentation

 Public sector re-organisation

 Unemployment

 The enterprise culture

The role of SEMs in the UK economy

Bolton Report (1971)

 Productive outlet for enterprising and independent

individuals

 Most efficient form of business organisation in some

industries

 Specialist suppliers or subcontractors

 Competition to monopolistic large companies

 Innovators of new products/services and processes

 Breeding ground for new industries

 The seedbed for which tomorrow’s larger companies

will grow

01/05/2017

The role of SEMs in the UK economy

England

 88% of all business enterprises in the UK are based

in England, with 33% concentrated in London and

the South East.

 London, however, has the smallest SME base in the

UK, accounting for just 45% of employment.

 The South West has the highest SME base in

England, accounting for just over 70% of

employment.

(Statistical Press Release URN 04/402, Office for

National Statistics, 2004)

Wales

 Wales has the second highest SME base in the UK

(over 70%).

 The majority (94%) of the estimated 170,000

business enterprises are micro enterprises,

employing 31% of all employees.

 The majority of Welsh SME businesses are in the

services sector (including retail, hospitality, transport,

and financial and business services) and in the

construction industry.

(Size Analysis of Welsh Business SDR 69/2004, Office

for National Statistics, 2004; Statistical Press

Release URN 04/402, Office for National Statistics,

2004)

01/05/2017

Scotland

 SMEs provide 53% of all jobs and make up 99% of

all business enterprises.

 In 2004, the turnover of small and medium-sized

enterprises was over £70million.

 The highest numbers of Scottish SMEs are engaged

in the financial and business services sector.

(Scottish Economic Statistics, Scottish Executive/ONS

IDBR, 2005)

Northern Ireland

 Northern Ireland has the highest SME base in the

UK, accounting for nearly 80% of employment.

 The majority of businesses enterprises are micros,

which account for 50% of all businesses.

 Small businesses account for 9.5% of all businesses

and 9% of employment.

(Statistical Press Release URN 04/402, Office for

National Statistics, 2004)

01/05/2017

Advantages of Working for SEMs

 Breadth of experience

 Flexibility

 Involvement

 Control over career progression

 Early responsibility

 Identity and recognition

 Fast turn-around

 Speed of progression

 Camaraderie (rewarding)

Disadvantages of Working for SEMs

 Underemployment

 Hidden jobs

 Unstructured training

 Challenge

 Unstructured career route

 Salary

 Lack of protection - under UK law, SMEs < 22

employees do not have to recognise trade union

affiliations among their workers.

01/05/2017

References:

How Is a Non-profit Different From a For-Profit Business?

https://www.thebalance.com/how-is-a-nonprofit- different-from-for-profit-business-2502472

Non-Profit Organisation

http://www.authorstream.com/Presentation/majestic27 -593473-non-profitorganization/

http://www.checksure.biz/small_medium_enterprises.htm

http://www.dti.gov.uk/bbf/small-business/research-and-

statistics/statistics/page38563.html

RR-F4/Business and the Business Environment/Support/BBE - Lecture 2.pdf

01/05/2017

Different types, size and scope of organisations and

their legal structures

Session 2 (LO1): Different types, size and scope of

organisations

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the session, students should be able to

understand the different types of organisations (LO1):

 Profit and not for profit and non-government

organisations (NGOs).

 Small businesses - micro, small, medium-sized

enterprises (SMEs).

01/05/2017

Profit organisations

To be discussed in LO2

Non-profit organisations

 What makes an organisation a non-profit has to do with

purpose, ownership, and public support.

 These elements create:

◦ A mission that focuses on activities that benefit society and whose goal is not primarily for profit

◦ public ownership where no person owns shares of the corporation or interests in its property

◦ income that must never be distributed to any owners but is recycled back into the non-profit corporation's

public benefit mission and activities.

01/05/2017

Profit and Non-profit organisations

 What makes an organisation a non-profit has to do with

purpose, ownership, and public support.

 These elements create:

◦ A mission that focuses on activities that benefit society and whose goal is not primarily for profit

◦ public ownership where no person owns shares of the corporation or interests in its property

◦ income that must never be distributed to any owners but is recycled back into the non-profit corporation's

public benefit mission and activities.

 In contrast, a for-profit business seeks to generate income for

its founders and employees. Profits can be shared with

owners, employees, and shareholders.

Characteristics of traditional non-profit organisations:

 Purpose: To make a profit.

 Ownership: Is owned by the public. It belongs to no private

person, and no one person controls the organisation

 Control: Control of a non-profit lies with a governing board of

directors or trustees. The responsibility of that board is to see

that the organisation fulfils its purpose.

 Accountability: Are accountable to the public and must file

annual information returns with the government - regarding its

finances.

01/05/2017

Not for profit and non-government organisations (NGOs).

 Institutions that conduct their affairs for the purpose of

assisting other individuals, groups, or causes rather than

garnering profits for themselves.

 Are tax-exempt businesses that benefit the good of the public.

 Have no shareholders; do not distribute profits in a way that

benefits members, directors, or other individuals in their

private capacity.

Types of Not for profit : Charitable Organisations

These include a wide variety of institutions involved in

 Poverty assistance (soup kitchens, counselling centres,

homeless shelters, etc.)

 Religion (churches and their ancillary possessions, such as

cemeteries, radio stations, etc.);

 Science (independent research institutions, universities);

health (hospitals, clinics, nursing homes, treatment centres)

 Education (libraries, museums, schools, universities, and

other institutions)

 Promotion of social welfare;

 Preservation of natural resources

 Promotion of theatre, music, and other fine arts.

01/05/2017

Types of Not for profit : Advocacy Organisations

These groups attempt to influence legislative process and/or

political process, or otherwise champion particular positions

 May call themselves 'social welfare organisations' or perhaps

'political action committees.

 Not all advocacy is lobbying and not all political activity is

political campaign activity. Some of this type of programme

can be accomplished through a charitable organisation, but

that outcome is rare where advocacy is the organisation's

primary undertaking.

Types of Not for profit : Social/Recreational Organisations

 Examples: Country clubs, hobby and garden clubs, sports

tournament organisations all can qualify as non-profit

organisations, provided that they adhere to basic guidelines of

net earnings distribution, etc.

 Unlike other tax-exempt organizations, however, their

investment income is taxable.

Satellite organisations:

 Organisations are deliberately organised as auxiliaries or

subsidiaries of other organizations.“

 Examples: cooperatives, retirement and other employee

benefit funds.

01/05/2017

Benefits of non-profit organisations:

 Success depends on its reputation in community

 Customers can enhance or damage this reputation,

depending on level of satisfaction with service they receive.

 Meeting and exceeding expectations of donors, volunteers

and clients ultimately results in increased donations of

financial and human resources to the agency.

Errors made by non-profit organisations:

 Not listening to donor expectations

 Unwarranted assumption of a donor's willingness to

contribute

 Lack of follow-up after initial contact

 Inadequate research on potential donors and their ability to

contribute Inability to close presentation with donor

commitment

 Neglecting to establish rapport with potential donors prior to

solicitation

 Neglecting to tailor solicitation to individual donors

 Approaching potential donors without knowledge of how

donations impact them in the realms of tax deductions, etc.

01/05/2017

Definition of Terms

Small business

 An independent business managed by its owner or

part owners and having a small market share either

by number of employees or turnover.

www.planningportal.gov.uk/england/government/en/1

115310689529.html

Small to medium-sized enterprise (SEM)

Statistical definitions of an SME use one or

more of three defining measurements:

 number of employees;

 turnover;

 size of the balance sheet.

http://www.google.co.uk/url?sa=X&start=0&oi=define&q=http://www.planningportal.gov.uk/england/government/en/1115310689529.html&usg=AFQjCNGNxsSp93obzBnUPEkdl_nCiXztMw

01/05/2017

Small to medium-sized enterprise (SEM)

Department of Business Enterprise and Regulatory

Reform:

 Micro firm: 0-9 employees;

 Small firm: 0-49 employees (includes micro);

 Medium firm: 50-249 employees;

 Large firm: over 250 employees.

EU (1996):

An enterprise which employees fewer than 250 persons and

which has an annual turnover not exceeding EUR 50 million,

and/or an annual balance sheet of not exceeding UER 43

million (Article Two)

Table 1: Revised European SME definition

 Enterprise category Headcount Turnover (€)

 Micro <10 <2 million

 Small >50 <10 million

 Medium-sized <250 <50 million

Source: http://europa.eu/eur-lex/pri/en/oj/dat/2003/l_124/l_12420030520en00360041.pdf

01/05/2017

Reasons for SEMs revival in the UK

 Growth of the service sector

 Information technology

 Flexible specialisation and networks

 Subcontracting and fragmentation

 Public sector re-organisation

 Unemployment

 The enterprise culture

The role of SEMs in the UK economy

Bolton Report (1971)

 Productive outlet for enterprising and independent

individuals

 Most efficient form of business organisation in some

industries

 Specialist suppliers or subcontractors

 Competition to monopolistic large companies

 Innovators of new products/services and processes

 Breeding ground for new industries

 The seedbed for which tomorrow’s larger companies

will grow

01/05/2017

The role of SEMs in the UK economy

England

 88% of all business enterprises in the UK are based

in England, with 33% concentrated in London and

the South East.

 London, however, has the smallest SME base in the

UK, accounting for just 45% of employment.

 The South West has the highest SME base in

England, accounting for just over 70% of

employment.

(Statistical Press Release URN 04/402, Office for

National Statistics, 2004)

Wales

 Wales has the second highest SME base in the UK

(over 70%).

 The majority (94%) of the estimated 170,000

business enterprises are micro enterprises,

employing 31% of all employees.

 The majority of Welsh SME businesses are in the

services sector (including retail, hospitality, transport,

and financial and business services) and in the

construction industry.

(Size Analysis of Welsh Business SDR 69/2004, Office

for National Statistics, 2004; Statistical Press

Release URN 04/402, Office for National Statistics,

2004)

01/05/2017

Scotland

 SMEs provide 53% of all jobs and make up 99% of

all business enterprises.

 In 2004, the turnover of small and medium-sized

enterprises was over £70million.

 The highest numbers of Scottish SMEs are engaged

in the financial and business services sector.

(Scottish Economic Statistics, Scottish Executive/ONS

IDBR, 2005)

Northern Ireland

 Northern Ireland has the highest SME base in the

UK, accounting for nearly 80% of employment.

 The majority of businesses enterprises are micros,

which account for 50% of all businesses.

 Small businesses account for 9.5% of all businesses

and 9% of employment.

(Statistical Press Release URN 04/402, Office for

National Statistics, 2004)

01/05/2017

Advantages of Working for SEMs

 Breadth of experience

 Flexibility

 Involvement

 Control over career progression

 Early responsibility

 Identity and recognition

 Fast turn-around

 Speed of progression

 Camaraderie (rewarding)

Disadvantages of Working for SEMs

 Underemployment

 Hidden jobs

 Unstructured training

 Challenge

 Unstructured career route

 Salary

 Lack of protection - under UK law, SMEs < 22

employees do not have to recognise trade union

affiliations among their workers.

01/05/2017

References:

How Is a Non-profit Different From a For-Profit Business?

https://www.thebalance.com/how-is-a-nonprofit- different-from-for-profit-business-2502472

Non-Profit Organisation

http://www.authorstream.com/Presentation/majestic27 -593473-non-profitorganization/

http://www.checksure.biz/small_medium_enterprises.htm

http://www.dti.gov.uk/bbf/small-business/research-and-

statistics/statistics/page38563.html

RR-F4/Business and the Business Environment/Support/BBE - Lecture 3.pdf

01/05/2017

Different types, size and scope of organisations and

their legal structures

Session 3 (LO1): Legal structures associated with different

forms of business

Prepared by: Dr Gilbert Zvobgo

ICTM

 Analyse organisations of different types and identify their main features.

 Explain the advantages and disadvantages of each type of organisation.

 Relate each type of ownership to the degree of control.

 Distinguish between organisations in the Private and Public Sectors.

01/05/2017

Types of Organisations  Sole Traders

 Partnerships  Companies/Corporations  Charities

 Cooperatives  Franchises  Private Sector and Public Sector

 What is the difference between the public and private sectors?

 Can you name some organisations from both sectors?

01/05/2017

 The Private Sector comprises businesses owned and controlled by individuals or groups of individuals. In most countries, the majority of business activity is in the private sector.

 The Public Sector comprises organisations accountable to and controlled by central or local government. These usually

include:  Health and education services  Defense  Law and order  Welfare and social services.

THE ECONOMY

Private Sector Public Sector

Private Sector

Businesses

Sole

Trader Partnership

Limited

Companies

Cooperatives

Private

LTD

Public

LTD

01/05/2017

This is the most common form of business organisation. One person provides the finances and in return, has full control of the business and is able to keep all the profits.

 What are the advantages and disadvantages of a sole trader?

01/05/2017

 Easy to set up  Owner has complete control –not answerable to

anybody else.

 Owner keeps all profits.  Able to choose times and patterns of working.  Able to establish close personal relationships

with staff (if any are employed) and customers.  The business can be based on the interest and

skills of the owner

 Unlimited liability – all of the owner’s a assets are potentially at risk.

 Often faces intense competition from bigger

firms, for example, food retailing.  Difficult to raise additional capital.  Long hours often necessary to make business

profitable.  Lack of continuity- as the business does not have

separate legal status, when the owner dies, the business ends too

01/05/2017

Partnerships are agreements between two or more people to run a business together.

The Deed of partnership establishes the rights and privileges of the partners. This document includes issues such as voting rights, distribution of profits, the management function of each partner and who has the authority to sign contracts.

 What are the advantages and disadvantages of being in a partnership?

01/05/2017

Advantages

 Partners may specialise in different areas of business management.

 Shared decision making.  Additional capital injected by each partner.

 Business losses shared between the partners.

 Greater privacy and fewer legal formalities than corporate Organisations (companies)

 Unlimited Liability for all partners.  Profits are shared.

 There is, as with sole traders, no continuity and the partnership will have to be reformed in the event of the death of one partner.

 All partners are bound by the decision of any one of them.

 Not possible to raise capital from selling shares.

 A sole trader, taking on partners will lose independence of decision-making

01/05/2017

Characteristics of Limited Companies

 Limited Liability  Legal personality  Continuity  Capital is divided into shares  Companies are run by directors

Memorandum of Association + Article of Association

Registrar of Companies

Certificate of Incorporation

Trading Begins

01/05/2017

 Name of the company  Name and address of the company’s

registered office  The objectives of the company and scope of

its activities  The liability of members  The amount of capital to be raised and the

number of shares to be issued Note: A limited company must have a

minimum of two members.

 The rights of shareholders

 The procedure for appointing directors and scope of their powers

 The length of time directors should serve before reelection

 The timing and frequency of company meetings

 The arrangement for auditing company accounts

01/05/2017

 Tend to be relatively small companies.  Their business name ends in Limited or Ltd.  Shares can only be transferred privately and

all shareholders must agree to the transfer.  Private Limited Companies are often family

businesses owned by members of the family or close friends.

 The directors of these companies tend to be shareholders and are involved in the running of the business.

 Many manufacturing firms are Private Limited Companies rather than Sole Traders or Partnerships

 Shareholders have limited liability.

 More capital can be raised as there are no limits on the number of shareholders.

 Control of companies cannot be lost to outsiders.

 The business will continue even if one of the

owners dies.

01/05/2017

Disadvantages

• Profits have to be shared out amongst a much larger number of members.

• There is a legal procedure to set up the business. This takes time and costs money.

• Firms are not allowed to sell shares to the public This restricts the amount of capital that can be raised.

• Financial information filed with the Registrar can be inspected by any member of the public. Competitors could use this to their advantage

Memorandum of Association + Article of Association + Statutory Declaration

Registrar of Companies

Certificate of Incorporation

Publish of Prospectus

FLOTATION

01/05/2017

 A plc cannot begin trading until it has completed these tasks and has received at least 25% payment for the value of shares.

 It will then receive a Trading Certificate and can

begin operating.  The shares will be quoted on the Stock Exchange

 The Stock Exchange is a market where shares are

bought and sold.

Advantages

Huge amounts of money can be raised from the sale of shares to the public. Production costs may be lower as firms gain economies scale. Because of their size, a plc can sometimes dominate the market. It becomes easier to raise finance as financial institutions are more willing to lend to plcs.

01/05/2017

Disadvantages •Setting up costs can be very expensive. •Since anyone can buy shares, its possible for an outside interest to take control of the company. •All company accounts can be inspected by member of the public. •Because of their size they cannot always deal with customers at a personal level. •The way they operate is controlled by various company acts which aims to protect shareholders. •There is divorce of ownership and control which might lead to the interest of owners being ignored to some extent. •Plcs inflexible due to their size.

This is a common form of business organisation in some countries, especially in agriculture and retailing.

Features

 All members can contribute to the running of

the business, sharing the work load, responsibilities and decision making.

 All members have one vote at important

meetings.  Profits are shared equally among members.

01/05/2017

Disadvantages

 Poor management skills unless professionals are employed.

 Capital shortages

because no sale of shares to the non-member general public is allowed.

 Slow decision making if

all members are to be consulted

Advantages

 Buying in bulk.

 Working together to solve problems and make decisions.

 Good motivation of all members to work hard as they will benefit from shared profits.

This is a contract between two firms. The contract allows one of them, the franchisee, to use the name, logo and marketing methods of the other, the franchiser. The franchisee can separately, then decide which form of legal structure to adopt.

01/05/2017

 Age: Many businesses change their legal status as they become older.

 The Need for finance: A change in legal status may

be forced on the business.

 Size: The size of a business operation is likely to affect its legal status.

 Limited Liability: Owners can protect their own

personal financial position if the business is a Limited Liability company.

 Degree of control: Owners may consider retaining

control of the business as important.

 The Nature of the Business: The type of business activity may influence the choice of legal status.

The Public Sector is made up of organisations which are owned and controlled by central or local government or public corporations. They are funded by government and in some cases from their own trading ‘surplus’ or profit.

Public Sector businesses still have

important roles to play in certain areas of business activity.

01/05/2017

Public Goods

Non- Rivalry Non- Excludable

Consumption of the good/Service

by one individual does not reduce the

Amount available for others

It is impossible to exclude others

From benefiting from their use

These are services which are provided to all on the basis of need rather than ability to pay:

Examples of merit goods are:

 Education, Health Services, Social services, Public Libraries

RR-F4/Business and the Business Environment/Support/BBE - Lecture 4.pdf

01/05/2017

Different types, size and scope of organisations and

their legal structures

Session 4 (LO1): Size and scope of organisations

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the lesson you will be able to:

 Define the term “business objective” and give at least 5

examples of common objectives.

 Explore the differences between long and short term

objectives

 Explain how objectives may change over time.

 Understand the growth and developments of transnational,

international and global organisations.

 Understand differences between franchising, joint ventures

and licensing.

 Understand industrial structures and competitive analysis

01/05/2017

 Framing rules, policies and procedures.

 Helps in ascertaining the resource requirement.

 Provides direction to the activities.

 A set of well defined objectives enable a firm to assign

duties to the employees

 Provides the basic for measuring and evaluating employee

performance

 Help the managers in taking rational decisions.

 Universal application.

 Justifies the very existence of a company

 In your groups provide a list of up to ten business

objectives

01/05/2017

To operate in

an ethical &

sustainable

manner.

Aims you may have thought of…

Maximise

Profit To Survive To grow in

size

To increase

market

To increase

turnover

To gain a

good

reputation

to maximise

customer

satisfaction

What do these aims mean? Match the aim with it’s explanation.

Aim What does it mean?

To maximise

profits

Over time, a business will look to expand. It might do this by opening new

branches, or by broadening it’s product range.

To survive Businesses often want to increase the amount of money that they receive

from selling their product to the customers.

To grow It is important that businesses respect both the environment and the

society in which they operate. This means they should always pay fair

wages, provide good working conditions, and try to reduce pollution and

waste.

To increase

market share

Word of mouth is one of the most powerful forms of advertising for small

businesses, and it is important that customers think highly of their business

so they will return, and tell others to visit too.

To increase

turnover

To make as much profit as possible, which is the reward for taking risks.

To gain a good

reputation

All of the businesses in a particular market can claim a percentage of the

sales in that market. Many businesses aim to increase the percentage of

sales that they are responsible for.

To maximise

customers

At first it is important that the business is kept alive. It might not be making

any profit, but the costs aren’t too high either.

To operate in an

ethical and

sustainable

manner.

Businesses want to increase the number of customers who use their

business. This may mean attracting brand new customers, and trying to

steal customers from their competitors.

01/05/2017

What do these aims mean? Fill in the missing words from the choices below. Aim What does it mean?

To maximise

profits

To make as much _______ as possible, which is the reward for taking _______.

To survive At first it is important that the business is kept _______. It might not be making any

_______, but the _______ aren’t too high either.

To grow Over time, a business will look to expand. It might do this by opening new __________,

or by broadening it’s _________ range.

To increase

market share

All of the businesses in a particular market can claim a ____________ of the ______ in

that market. Many businesses aim to increase the percentage of sales that they are

responsible for.

To increase

turnover

Businesses often want to increase the amount of money that they receive from

_______ their product to the _____________.

To gain a good

reputation

Word of mouth is one of the most powerful forms of ______________ for small

businesses, and it is important that customers think highly of their business so they will

________, and tell others to visit too.

To maximise

customers

Businesses want to __________ the number of customers who use their business. This

may mean attracting brand new customers, and trying to steal customers from their

____________.

To operate in an

ethical and

sustainable

manner.

It is important that businesses ____________ both the environment and the society in

which they operate. This means they should always pay fair ________, provide good

working conditions, and try to reduce ____________ and waste.

Alive Risks Profit Return Customers Selling Wages

Product Branches Profit Costs Sales Respect

Competitors Percentage Advertising Increase Pollution

Short term objectives

Long term objectives

New business

Objectives of a New Business.

Complete the diagram, deciding which of the objectives you have just looked at would be long term, and which would be short term.

01/05/2017

ECONOMIC OBJECTIVES

•Profit earning

•Creation of customers

•Regular innovations

•Best possible use of resources

SOCIAL OBJECTIVES

•Production and supply of quality goods and services

• Adoption of fair trade practices

• Contribution to the general welfare of the society

Business Objectives

Cramlington Library

Wilf Smith (Joiner)

Jimmy Spiv

HUMAN OBJECTIVES

•Economic well being of the employees

•Social and psychological satisfaction of employees

•Development of human resources

•Well being of socially and economically backward people

NATIONAL OBJECTIVES

•Creation of employment

•Promotion of social justice

•Production according to national priority

•Contribute to the revenue of the country

•Self-sufficiency and Export Promotion

Business Objectives

Cramlington Library

Wilf Smith (Joiner)

Jimmy Spiv

01/05/2017

GLOBAL OBJECTIVES

•To raise general standard of living

•To reduce disparities among nations

•To make available globally competitive goods and services

Business Objectives

Cramlington Library

Wilf Smith (Joiner)

Jimmy Spiv

• Private firms that have established branch operations in

nations foreign to their headquarters’ country. Also known

as multinational enterprises (MNEs).

• A company that has operations in more than one country to

produce or sell products and services

• TNCs build their businesses by buying foreign firms in

mergers or acquisitions

E.g. Wal-Mart, Toyota Motor, Ford Motor , Tesco

Global Growth - TNCs

01/05/2017

•Most TNCs operate in a few industries (computers,

electronics….)

•Some dominate the marketing and distribution of basic and

specialized commodities

•For example: in raw materials, a few TCNs account for 85% or

more of world trade in wheat, maize, coffee…

•In manufacturing, pharmaceutical industry is dominated by just

six firms

Global Growth - TNCs

Are TNCs a problem or a solution?

For

•Raising living standards – TNCs invest in the economies of the

developing nations

•Transfer of technology – South Korean firms, e.g., Samsung

have learned to design products for foreign markets

•Political stability – investment by TNCs has contributed to

economic growth and political stability, e.g., China

•Raising environmental awareness – due to large corporate

image TNCs do respond to criticism, e.g., Co-op has ‘green

credentials’

•g

Global Growth - TNCs

01/05/2017

Are TNCs a problem or a solution?

Against

•Tax avoidance – many avoid paying full taxed in countries they

operate in through concessions

•Limited linkages – FDI does not always help developing nations

economies

•Sweatshops – workers are employed for long hours, low pay in

poor conditions

•Growing global wealth divide – selective investment in certain

global areas is creating a widening divide, e.g., Southeast Asia

vs. sub-Saharan Africa

•Environmental degradation – example of Bhopal, India disaster

in 1984

Global Growth - TNCs

Franchising

“A franchise operation is a contractual relationship between the

franchisor and franchisee in which the franchisor offers or is

obliged to maintain a continuing interest in the business of the

franchisee in such areas as know-how and training; wherein the

franchisee operates under a common trade name, format and/or

procedure owned or controlled by the franchisor, and in which

the franchisee has or will make a substantial capital investment

in his business from his own resources.”

Source: International Franchise Association

•g

Franchising

01/05/2017

What is Franchising

•Legal and commercial arrangement concerning the successful

business of a franchisor

•Use of franchisor’s trade name, format, system and/or

procedure under licence

•Means to raise capital and expand quickly

•Assistance to franchisee

– Marketing, management, advertising, store design,

standards specifications

•Payment by franchisee by way of royalty, licensee fee or other

means

•g

Franchising

Examples of Franchising

•g

Franchising

01/05/2017

Three main types of franchise

• Product distribution franchise - the franchisee merely sells

the franchisor’s products. Also includes some form of

integration of the business activities (McDonald’s, Starbucks

Coffee).

• Business format franchise - franchisee not only distributes

the franchisor’s products and services under the franchisor’s

trade mark, but also implements the franchisor’s format and

procedure of conducting the business (Subway)

• Management franchise -franchisee provides the

management expertise, format and/or procedure for

conducting the business (Hilton Hotel, UPS).

Franchising

Why a franchise?

•Leveraging on a recognised brand name

•Enhancing business image

•Ensuring consistent quality

•Attaining higher productivity/better motivated staff

•Access to good locations

•Economies of scale

•Reducing risks of failure

•Franchises offer ongoing support

– training

– national and regional advertising

– operating procedures and operational assistance

– supervision and management support

– increased spending power, access to bulk purchasing and economies

of scale

Franchising

01/05/2017

What is licensing?

•A business arrangement that occurs when the owner of

intellectual property (the licensor) contracts to permit another

party (the licensee) to use the intellectual property.

– Trademarks, service marks, trade names, copyrights

•Licenses issued for distribution of goods, services, software,

and digital information.

Licensing

Meaning of joint venture

•A joint venture is an arrangement where two or more business entities combine their resources to pursue a single project or transaction.

•It is usually a temporary partnership without the use of a firm name.

•It is limited to carryout a particular business plan, in which the persons concerned agree to contribute capital and to share profit (or losses).

•The parties in a joint ventures are known as co- venturers.

•Their liability is limited to the venture concerned for which they agree to contribute capital and share profit or losses

•It is a temporary partnership which comes to an end after the completion of a

particular venture.

•It is for a specific venture, so it is a particular partnership.

•The partnership is without the use of a firm name.

•The main purpose it to make profit and to distribute it among all co-

venturers. Loss, if any, will also be borne in agreed ratio or equally if no

agreement regarding ratio has been made.

Joint ventures and licensing.

01/05/2017

Licensing

Franchising

Licensing

 Licensing is an arrangement in

which a company (licensor)

sells the right to use

intellectual property or produce

a company's product to the

licensee, for royalty.

 The licensor has control on the

use of intellectual property by

the licensee, but has no

control on the licensee's

business.

Franchising

 Franchising is an arrangement

in which the franchisor permits

franchisee to use business

model or brand name for a fee,

to conduct business, as an

independent branch of the

parent company (franchisor).

 Franchisor exerts considerable

control over franchisee's

business and process.

•International joint ventures

– Widely used

– Reduce risks of expanding into foreign environments

– May be legal requirement of local joint venturer in some foreign

countries

– Local partner's contribution likely to be in the form of specialized

knowledge about local conditions

– Subject to clashes of different cultures

Complementary production

• Joint use of assets or inputs to produce outputs which cannot be

attributed to any single input

• Synergy — output is more than sum of inputs

• Complementary asset defined as one whose value in production

process depends upon combination with other assets/technology

• Problem arises when complementary assets have different owners

Joint ventures

01/05/2017

Reasons for failure

– Inflexibility problems similar to other long-term contracts

– Implementation requires substantial commitments of

managerial resources

– Inadequate preplanning

– Disagreement between parties

– Joint ventures do not last as long as planned

• About 70% are disbanded before scheduled maturity

• On average they do not last as long as one-half the

term of years stated in agreement

Joint ventures

Issues in Defining an industry

•What part of the industry corresponds to our firm’s goals?

•What are the key ingredients of success in that part of the industry?

•Does our firm have the skills needed to compete in that part of the industry?

•Will the skills enable us to seize emerging opportunities and deal with future threats?

•Is our definition of the industry flexible enough to allow necessary adjustments to our business concept as the industry grows?

Industrial structures and competitive analysis

01/05/2017

Characteristics of Industry Structure

•Structural attributes – Enduring characteristics giving an industry its distinctive character

•Variations among industries involves examining

• Concentration – Extent to which industry sales are dominated by only a few firms

• Economies of Scale – Savings firms within an industry achieve due to increased volume

• Product Differentiation – Extent to which customers perceive products of firms in industry as different

• Barriers to Entry – Obstacles a firm must overcome to enter an industry

Industrial structures and competitive analysis

Variables in Identifying Competitors

•How do other firms define the scope of their market? • The more similar the definitions of firms, the more likely the firms will

view each other as competitors

•How similar are the benefits the customers derive from the products and services other firms offer?

• The more similar the benefits, the higher the level of substitutability between them

•How committed are other firms to the industry? • To size up commitment of potential competitors to industry, reliable

intelligence data are needed concerning potential resource commitments

Industrial structures and competitive analysis

01/05/2017

Forces Driving Industry Competition

Suppliers

Substitutes

Industry Competitors

Rivalry Among

Existing Firms

New

Entrants

Buyers

Bargaining power

of suppliers

Threat of substitute

products or services

Bargaining power

of buyers

Threat of new entrants

The Firm’s External Environment

THE FIRM

Operating Environment (Global and Domestic)

•Competitors •Labor

•Suppliers

•Customers •Creditors

Remote Environment (Global and Domestic) •Economic •Social

•Political

•Technological

•Ecological

RR-F4/Business and the Business Environment/Support/BBE - Lecture 5.pdf

14/05/2017

Different types, size and scope of organisations and

their legal structures

Session 4 (LO1): Market Forces and economic operations

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the lesson you will be able to:

 Define the term “business objective” and give at least 5

examples of common objectives.

 Explore the differences between long and short term

objectives

 Explain how objectives may change over time.

 Understand the growth and developments of transnational,

international and global organisations.

 Understand differences between franchising, joint ventures

and licensing.

 Understand industrial structures and competitive analysis

14/05/2017

 The law of demand holds that other things equal, as the price of a good or service rises, its quantity demanded falls.

◦ The reverse is also true: as the price of a good or service falls, its quantity demanded increases.

The demand curve has a negative slope, consistent with the law of demand.

14/05/2017

 The law of supply holds that other things equal, as the price of a good rises, its quantity supplied will rise, and vice versa.

 Why do producers produce more output when prices rise?

◦ They seek higher profits

◦ They can cover higher marginal costs of production

14/05/2017

The supply curve has a positive slope, consistent with the law of supply.

14/05/2017

 In economics, an equilibrium is a situation in which: ◦ there is no inherent tendency to change,

◦ quantity demanded equals quantity supplied, and

◦ the market just clears.

Equilibrium occurs at a price of $3 and a quantity of 30 units.

14/05/2017

 A shortage occurs when quantity demanded exceeds quantity supplied.

◦ A shortage implies the market price is too low.

 A surplus occurs when quantity supplied exceeds quantity demanded.

◦ A surplus implies the market price is too high.

 A change in any variable other than price that influences quantity demanded produces a shift in the demand curve or a change in demand.

 Factors that shift the demand curve include: ◦ Change in consumer incomes ◦ Population change ◦ Consumer preferences ◦ Prices of related goods:

 Substitutes: goods consumed in place of one another

 Complements: goods consumed jointly

14/05/2017

This demand curve has shifted to the right. Quantity demanded is now higher at any given price.

The shift in the demand curve moves the market equilibrium from point A to point B, resulting in a higher price and higher quantity.

14/05/2017

 A change in any variable other than price that influences quantity supplied produces a shift in the supply curve or a change in supply.

 Factors that shift the supply curve include:

◦ Change in input costs

◦ Increase in technology

◦ Change in size of the industry

For an given rental price, quantity supplied is now lower than before.

14/05/2017

The shift in the supply curve moves the market equilibrium from point A to point B, resulting in a higher price and lower quantity.

Supply and Demand - Econweb - Econweb Online …

https://view.officeapps.live.com/op/view.aspx?src =http%3A%2F%2Fwww.econweb.com%2FMacroWelc ome%2Fsandd%2Fppt%2F03_econweb_sd.ppt

Economics 1 - Lecture 2: Demand and Supply

https://www.youtube.com/watch?v=ZR2255CEhvk

Econ 2.1 Demand and Supply Explained (1 of 2)

https://www.youtube.com/watch?v=LwLh6ax0zTE

http://ingrimayne.com/econ/DemandSupp ly/quiz4ai.htm

http://www.econweb.com/MacroWelcome/sandd/ppt/03_econweb_sd.ppt

https://view.officeapps.live.com/op/view.aspx?src=http%3A%2F%2Fwww.econweb.com%2FMacroWelcome%2Fsandd%2Fppt%2F03_econweb_sd.ppt

https://www.youtube.com/watch?v=ZR2255CEhvk

https://www.youtube.com/watch?v=LwLh6ax0zTE

http://ingrimayne.com/econ/DemandSupply/quiz4ai.htm

14/05/2017

Supply and Demand: Sample Quiz

http://ingrimayne.com/econ/DemandSupply/quiz 4ai.htm

http://www.econweb.com/MacroWelcome/sandd/ quiz/index.html

http://www.sparknotes.com/economics/micro/su pplydemand/review/quiz.html

http://www.quiztron.com/tests/economics_- _unit_5_-_quiz_81410.htm

 We know when P

holding other factors constant

http://www.econweb.com/MacroWelcome/sandd/ppt/03_econweb_sd.ppt

http://www.econweb.com/MacroWelcome/sandd/quiz/index.html

http://www.sparknotes.com/economics/micro/supplydemand/review/quiz.html

http://www.quiztron.com/tests/economics_-_unit_5_-_quiz_81410.htm

14/05/2017

 if price doubles

how much does Qd fall? ◦ by 10%

◦ by 50%

◦ by 300%?

 price elasticity tells us

example

 mocha latte at Starbucks

 price rises from $3 to $5 per cup

 Qd falls from 15 to 5 cups per hr.

14/05/2017

% change in Qd

% change in P

new Qd - initial Qd

average Qd x 100

midpoint method

14/05/2017

5 cups - 15 cups

(5+15)/2 cups x 100

-10 cups

10 cups x 100 = -100%

new P - initial P

average P x 100

midpoint method

14/05/2017

$5 - $3

($5+$3)/2 x 100

$4 x 100 = 50%

% change in Qd

% change in P

-100%

50% = -2

14/05/2017

% change in Qs

% change in P

 bunch of roses

 P = $40/bunch, Qs = 6 (million bunches)

 P = $60, Qs = 15

14/05/2017

15 - 6

(6+15)/2 x 100

10.5 x 100 = 86%

60 - 40

(60+40)/2 x 100

50 x 100 = 40%

14/05/2017

% change in Qs

% change in P

86%

40% = 2.15

 impact of income changes on demand

 size of shift

in the demand curve

when income changes

14/05/2017

% change in Qd

% change in income

 > 0 normal good

 < 0 inferior good

 income increases 10%

 Qd jewelry increases 35%

14/05/2017

% change in Qd jewelry

% change in income

35%

10% = 3.5

 Resources are scarce ◦ People have less resources than they would like

 Choices ◦ Must be made among limited set of possibilities

◦ Have more one thing means have less something else (trade-off)

14/05/2017

 Labor – scarce ◦ Time limitations

◦ Number of skilled workers – limited

 Economics – study ◦ Use limited means to pursue unlimited ends

 Opportunity cost of any decision ◦ Value of next best alternative - forgone

 Principle of opportunity cost economics ◦ Options available

 Households & businesses

 Governments & entire societies

◦ Given - limited resources

◦ Study logic of

 How people can make optimal decisions

 From among competing alternatives

14/05/2017

 With limited resources ◦ Decision - have more of one thing

 Have less of something else

 Relevant cost of any decision ◦ Opportunity cost

 Value of next best alternative - given up

 Optimal decision making ◦ Based on opportunity-cost calculations

 Market - functions well ◦ Goods with high opportunity costs have high money

costs

◦ Goods with low opportunity costs have low money costs

◦ Might not be identical: Forgone wage of college education

 Optimal decision ◦ Best serves objectives of decision maker

◦ Selected by explicit or implicit comparison with possible alternative choices

14/05/2017

 Outputs – produced by firm or economy ◦ Goods & services it produces

 Inputs - used by firm or economy ◦ Labor, raw materials, electricity, other resources

◦ To produce outputs

 Example: One business firm – Farmer ◦ Fixed supply of inputs

◦ Given technology

◦ Produce two outputs

 Produce more of one output

 Produce less of the other

14/05/2017

Production possibilities open to a farmer

Bushels of Soybeans

Bushels of Wheat

Label in Figure 1

40,000 30,000 20,000 10,000

0 38,000 52,000 60,000 65,000

A B C D E

 Production possibilities frontier (PPF) ◦ Different combinations of various goods

◦ Given

 Available resources

 Existing technology

◦ Slopes downward to right (Why?)

◦ Points: on or inside

 Attainable

◦ Points: outside

 Cannot be achieved

14/05/2017

 A production possibility frontier (PPF) is a curve or a boundary which shows the combinations of two or more goods and services that can be produced whilst using all of the available factor resources efficiently.

 PPF normally drawn as concave to the origin - because extra output resulting from allocating more resources to one particular good may fall, i.e., as we move down the PPF, as more resources are allocated towards Good Y, the extra output gets smaller – and more of Good X has to be given up in order to produce the extra output of Good Y. This is known as the principle of diminishing returns. Diminishing returns occurs because not all factor inputs are equally suited to producing different goods and services

 Video ◦ The Economic Problem: Scarcity and Choice (MBA

SBM-ITB)

◦ https://www.youtube.com/watch?v=SA7pj7fHspA

 Quiz

 Case Study

https://www.youtube.com/watch?v=SA7pj7fHspA

14/05/2017

The Fundamental Economic Problem - Scarcity and Choice ...

www2.hawaii.edu/.../Chapter%203%20- %20The%20Fundamental%20Ec...

See also the following reading material:

http://www.cengage.com/resource_uploads/static_reso urces/0324221150/8690/0324335733_03_lr.pdf

Production Possibility Frontier ("PPF")

http://www.tutor2u.net/economics/revision-notes/as- markets-production-possibility-frontier.html

http://www2.hawaii.edu/~huihe/TEACHING/UHECON131/Chapter 3 - The Fundamental Economic Problem - Scarcity and Choice.ppt

http://www.cengage.com/resource_uploads/static_resources/0324221150/8690/0324335733_03_lr.pdf

RR-F4/Business and the Business Environment/Support/BBE - Lecture 6.pdf

BUSINESS AND THE BUSINESS

ENVIRONMENT

Understand the impact of market power on an

economy

Session 6 (LO2): The various functions within an organisation

Prepared by: Dr Gilbert Zvobgo

ICTM

Objectives of the Session

By the end of the session students should be able to

– Explain the role of marketing, finance, human resource management and operations within an organisational context and the interrelationships.

– Explain how functions relate to overall organisation mission and objectives.

The Role of Marketing

• Strategic Marketing:

– Marketing activities that affect corporate,

business, and marketing strategic plans.

The Role of Marketing

Marketers orient everyone in the organization

toward markets and customers.

Marketers analyze the current situation,

identify trends in the marketing environment,

and assess the potential impact of these trends.

Marketers development corporate, business,

and marketing strategic plans.

The Role of Marketing

• Marketing

Management:

– Relates to specific

product marketing

strategies.

• Networks:

– Comprise strategic

alliances among

suppliers, distributors,

and the marketing firm.

Corporate Strategy Decisions

• Corporate Vision

• Corporate Objectives & Resource Allocation

• Corporate Growth Strategies

• Business-unit Composition

Corporate Vision

• Corporate Vision:

– The basic values of an organization.

– The vision specifies what

the organization stand

for, where it plans to go,

and how it plans to get

there.

What Comprises Corporate Vision?

• Markets

• Products and services

• Geographic domain

• Core competencies

• Organizational objectives

• Organizational philosophy

• Organizational self-concept

• Desired public image

Core Purpose: A Company’s Reason for Being

• 3M: To solve problems innovatively.

• Hewlett-Packard: To make technical contributions for the advancement and welfare of humanity.

• Mary Kay Cosmetics: To give unlimited opportunity to women.

• Merck: To preserve and improve human life.

• Sony: To experience the joy of advancing and applying technology for the benefit of the public.

• Wal-Mart: To give ordinary folks the chance to buy the same things as rich people.

Core Purpose

• Core Competency:

– A bundle of skills that are possessed by

individuals across the organization.

Questions Leading to an Effective Corporate Vision

1. Which customers will you be serving in the future?

2. Through which channels will you reach customers in the future?

3. Who will be your competitors in the future?

4. Where will your margins come from in the future?

Questions Leading to an Effective Corporate Vision

5. In what end-product markets

will you participate in the

future?

6. What will be the basis for your

competitive advantage in the

future?

7. What skills or capabilities will

make you unique in the

future?

Corporate Objectives and Resource Allocation

• Corporate objectives specify the

achievement of desired levels of

performance during particular time

periods.

Corporate Objectives and Resource Allocation

Corporate objectives and

resource allocation affect

marketers in 2 basic ways:

1) In setting the

objectives for different

organizational levels.

2) Providing guidance

for the development

and Implementation of

marketing strategies.

Corporate Growth Strategies

Market

Penetration

Market

Development Diversification

Product

Development

Products

Same New

M a

rk e

N e w

S a m

Business-Unit Composition

• Strategic Business Unit

(SBU):

– Focuses on “a single product

or brand, a line of products, or

mix of related products that

meets a common market need

or a group or related needs,

and the unit’s management is

responsible for all (or most) of

the basic business functions”

Business-Unit Composition

• Companies often organize around

competency-based SBUs to

establish Sustained Competitive

Advantage.

Business Strategy Decisions

• The basic objective of a business strategy is

to determine how the business unit will

compete successfully.

Business Strategy Decisions

• Dimensions of

Strategy:

– Market scope.

– How broadly the

business views its

target market.

– Competitive

advantage.

• Competitive

Advantage:

– The way a business

tries to get consumers

to purchase its

products over those

offered by

competitors.

General Business Strategies

• Easyjet

• Jet Blue

• Conair

• Alaskan Airlines

• Midwest

• American

• Delta

• United Jet Blue

• Southwest

Market Scope

Focused Broad

C o

m p

e ti

ti v e

A d

v a

n ta

g e

D if fe

re n

ti a

ti o n

L o

w p

ri c e

Marketing Strategy Decisions

A Marketing

Strategy Addresses:

• Selection of a

target market.

• Development of a

marketing mix. Functional strategies

are at the

business-unit level.

Operating strategies

are at the product level.

Business & Product Marketing Strategies

Target market Segmented or mass approach Specific definition of target market

Product Number of different products Specific features of each product

Price General competitive price level Specific price

Distribution General distribution policy Specific distributions

Marketing

communications General emphasis on marketing Specific marketing

communications tools communications program

Decision Area Business Marketing Strategy Product Marketing Strategy

Executing Strategic Plans with Teamwork

1. Cross-Functional Teamwork

2. Marketing Teamwork

3. Co-Marketing Alliances

Business Function Orientations

Function Basic Orientation

Marketing To attract and retain customers

Production To produce products at lowest cost

Finance To keep within budgets

Accounting To standardize financial reports

Purchasing To purchase products at lowest cost

R&D To develop newest technologies

Engineering To design product specifications

Vision, mission and objectives

The Vision Statement (The Dream)

• Vision communicates what organisation believes are the ideal conditions for your community – how things would look if the issue important to you were perfectly addressed.

• It is brief proclamation that convey the community's dreams for the future.

Examples

• Healthy children

• Safe streets, safe neighbourhoods

• Every house a home

• Education for all

• Peace on earth

Vision

• A future view of what an organization would like to become

– Be the hospital of choice in the region

– Be national recognised as a best research center in the field

– Etc…

The Mission (What and Why)

• Purpose for the organization’s existence

• Represents fundamental and unique aspirations that make the organisation different from others: who we are, what we do

• Guides the planning process

• All sub-units should be focused on the organization’s mission and how they contribute toward accomplishments.

Scope of the Mission

• Defines the type of activities and services that will be performed

• Should be clearly identified (detailed) to help employees and customers understand the priorities of the organization

• Serves as basis for development of certain goals and objectives

Scope of the Mission An organization's mission statement describes what the group is going to do, and why it's going to do that. Mission statements are similar to vision statements, but they're more concrete, and they are definitely more "action- oriented" than vision statements

Examples of mission statements

• IBM: We want to be the best service organisation

in the world

• Walmart: To give ordinary folk the chance to buy

the same things as rich people

• To develop a safe and healthy neighbourhood through collaborative planning, community action, and policy advocacy.

Goals and Objectives

Once an organisation has developed its mission statement,

its next step is to develop the specific objectives that are

focused on achieving that mission. Objectives refer to

specific measurable results for the initiative's broad goals.

An organization's objectives generally lay out how much of

what will be accomplished by when.

• Goal—explains how the mission will be realised;

describes what is to be accomplished

• Objectives—specify how and when goals will be met

Example: By the year 2006, increase by 30% the percentage of families that own their home.

Strategy (The How)

• Strategies explain how the initiative will reach its objectives.

• Generally, organisations will have a wide variety of strategies that include people from all of the different parts, or sectors, of the community.

• These strategies range from the very broad, which encompass people and resources from many different parts of the community, to the very specific, which aim at carefully defined areas.

Broad: A child health program might use social marketing to promote adult involvement with children

Specific: Providing information and enhancing skills (e.g., offer skills training in conflict management)

References The Role of Marketing

Christine Moorman & Roland T. Rust

https://www.rhsmith.umd.edu/files/Documents/Faculty/TheRol eOfMarketing.pdf

Vision, missions, goals

https://www.slideshare.net/lidhiyababu/vision-mission-goals- and-objectives

https://www.slideshare.net/joh5700/vision-mission-goals-and- objectives-whats-the-difference

http://ctb.ku.edu/en/table-of-contents/structure/strategic- planning/vmosa/main

https://www.rhsmith.umd.edu/files/Documents/Faculty/TheRoleOfMarketing.pdf

https://www.slideshare.net/joh5700/vision-mission-goals-and-objectives-whats-the-difference

RR-F4/Business and the Business Environment/Support/BBE - Lecture 7.pdf

Demonstrate the interrelationship of the various functions within

an organisation and how they link to organisational structure

Session 7 (LO2): Organisational structure

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the session students should be able to

 Explain the different structures depending upon the size

and scope of the organisation, including bureaucratic

and post-bureaucratic, parent, strategic business units

(SBUs), matrix and functional levels.

 Explain organisation structures and complexities of

transnational, international and global organisations.

 The structure is the shape of an organisation

 Organisations create the structure to best meet their purposes

 Example - Oxfam

◦ Have sections concerned with media & public relations; managing its shops and others concerned with organising famine relief around the world

 Purpose of structure:  Division of work – so everyone is clear about their own and others

roles and related tasks in the organisation

 Establish lines of control and communication

 To avoid conflict and individuals making decisions that contradict others

 Establishes chain of command

 Function

◦ E.g. production, marketing, accounts

 Geographical area

◦ E.g. North East, Midlands, Wales

 Product groups

◦ E.g. grocery, homeware, electrical

 Customer type

◦ E.g. individual and business bank accounts

Show the following:

 Main parts of organisation, and relationship between them

 Relevant sections of organisation and who reports to whom

 How work will be divided up

 Span of control (number of people that individuals are responsible for)

 All levels of hierarchy

Tall aka traditional/mechanistic structure - Many layers - Narrow spans of control - Allows tighter control

(less delegation) - Takes longer for

communication to pass through layers

- More layers = more staff = higher costs

Flat

- Fewer layers

- Wide span of control

- Less direct control (more delegation)

- Fewer opportunities for promotion, but staff are given greater responsibility

- Vertical communication is improved

- Fewer layers = less staff = lower costs

 Businesses have a range of key functions

 Various departments carry out these key functions

 Functional areas are need to so work can be carried out efficiently and effectively

 Finance

 Human Resource Management

 Research & Development

 Production

 Service Delivery

 Marketing

 Sales

 IT Services

 Customer Service

 Management Information Systems

 Distribution

 Marketing/Sales

◦ Market research

◦ Market analysis

◦ Market strategy

◦ Sales team

 Finance and Accounts

◦ Cash inflows

◦ Cash outflows

◦ Capital

 Human Resource Management

◦ Recruitment

◦ Retention

◦ Training

◦ Conditions or work

◦ Worker representation

◦ Health and safety

 Administration/IT Support

◦ Clerical work

◦ Cleaning and maintenance

◦ Technical support

◦ Security

 Operations

◦ Getting the right materials and equipment

◦ Planning production

◦ Monitoring production

◦ Monitoring budgets

◦ Providing services

◦ Monitoring quality

 Customer services

◦ Information

◦ Customer support

◦ After-sales support

◦ Customer advice

 Research and development

◦ New product development

◦ Research into new products

◦ Experimenting with new ideas

◦ Improving existing products

Structural Dimensions

 Describe the internal characteristics of an organisation

Contextual Dimensions

 Everything that shapes the structure of the organisation

1) Formalisation:

- Amount of written documentation in the organisation

- Include procedures, job descriptions, regulations, and policy manuals

2) Specialisation:

- The degree to which organizational tasks are subdivided into separate jobs

- Skilled trades often exhibit a high degree of specialization

3) Hierarchy of Authority:

- Describes who reports to whom and the span of control of each manager

- The number of layers of management: tall vs. flat organizations 15

4) Centralisation:

- Refers to the hierarchical level that has authority to make a decision

- Centralized decision making (at top) gives little discretion to lower level employees

5) Professionalism:

- Is the level of formal education and training of employees

- Accounting firms have a high level of professionalism

6) Personnel Ratios:

- Refer to the deployment of people to various functions and departments

- Measures include various ratios such as administrative ratio 16

1) Size:

- Is the organisation’s magnitude as reflected in the number of people in the organisation

- Organisation as a social system

2) Organisational Technology

- Is the nature of the production subsystem that changes inputs to outputs

- Includes assembly lines, classrooms, oil refineries, etc.

3) Environment:

- Includes all elements outside the boundaries of the organization

- Includes customers, suppliers, competitors, government, etc.

4) Goals & Strategy:

- Define the purpose and competitive techniques that set one organisation apart from others

- Includes mission statements and plans of action

5) Culture:

- Is the underlying set of key values, beliefs, understandings, and norms shared by employees

- May be observed in stories, symbols, ceremonies, etc.

 As environments become more turbulent, organizations change

◦ From vertical to horizontal structures

◦ From routine tasks to empowered tasks

◦ From formal control to shared information

◦ From competitive to collaborative strategy

◦ From rigid to adaptive control

RR-F4/Business and the Business Environment/Support/BBE - Lecture 9.pdf

The application of the PESTLE framework and how

organisations need to monitor and forecast external

influences.

Session 8 (LO3): The context of the macro environment

Prepared by: Dr Gilbert Zvobgo

ICTM

By the end of the session students should be able to:

Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations

 Business environment = the surrounding conditions in which the business operates

 Divided into two broad categories

◦ The internal environment, or the micro environment

 Includes those factors over which the business has some control, such as employees, managers, management style, corporate culture and company policies

◦ The external environment

 Includes those factors over which the business has no control, such as economic conditions, government policy, competitors and technology

 It may be further divided into the operating environment

 What is PEST analysis?  PEST analysis is an analysis model examining

the external environment and the global factors that may affect a business.

 It can provide a quick understanding of the external pressures facing a business and their possible constraints on its strategy.

 It is usually divided into four external influences on a business – political, economic, social and technological.

PEST Analysis Model

 Purposes:

To find how political development, locally, nationally, internationally affect the strategy of a business.

 Areas to be considered:

1. Consumer laws and regulation

2. Political pressures,

3. Government views of certain business activities, including local, national or international government political issues affecting a business

Political

 Purposes:

To find how economic factors may affect on the business.

 Areas to be considered:

1. Consumer activities, such as spending patterns

2. Economic conditions, such as inflation, unemployment, growth, etc.

3. Government policies, such as fiscal, monetary, exchange rates, etc.

4. The changes in production and labor market …

Political

Economic

 Purposes:

To find what competitive

advantage a business may gain by social changes.

 Areas to be considered: 1. Aging population trend, which may

increase services for old people

2. Birth rate increase, which may affect baby product markets

3. Security condition, e.g. increase in crime may cause a business to increase insurance costs

4. Pressure groups, such as environmental groups, local community groups, etc. which may prevent a business from polluting a river…

Political

Economic

Social

 Purposes: To find how new technologies might affect the business activities.

 Areas to be considered: 1. The rate of technological change 2. The development of IT 3. The wide use of Internet 4. The creation of new materials

for production …  Impacts:

All these technological changes will lead to some effects on the business, such as the product of the business may be replaced by new products or its production methods may have become out of date.

Political

Economic

Social

Technological

Refer to government policy such as the degree of intervention in the

economy:

 What goods and services does a government want to provide?

 To what extent does it believe in subsidising firms?

 What are its priorities in terms of business support?

 Political decisions can impact on many vital areas for business such as

education of workforce, health of nation and quality of the infrastructure

of economy such as road and rail system.

 The political-legal dimension of the general environment also affects

business activity (zoning, educational facilities).

 The philosophy of political parties in power influences business

practices

 The legal environment serves to define what organizations can and

cannot do at a particular point in time (Consumer Protection from Unfair

Trading Regulations 2008;Consumer Credit Acts 1974-2006; Sale of

Goods Act 1979; Consumer Protection Act 1987).

Refer to the character and direction of the economic system within which the

firm operates.

 The impact of economic factors may differ between industries, for

example, interest rates, taxation changes, economic growth, inflation and

exchange rates.

 Economic change can have a major impact on a firm's behaviour. For

example:

◦ higher interest rates may deter investment because it costs more to borrow

◦ inflation may provoke higher wage demands from employees and raise costs

◦ higher national income growth may boost demand for a firm's products

 Availability of financial infrastructure (system of banks, settlement of

accounts, transfer of money, control of foreign exchange, accounting

systems and the government control on financial activities within

a country).

 The level of income the propensity for people to spend can influence

investment decisions in firms.

 Socio-cultural dimensions – culture, sub-cultures, customs,

lifestyles, and values that characterise the society in which

the firms operates.

 Socio-cultural factors include anything within the context of

society that has the potential to affect an organization -

population demographics (birth rate, death rate, net

migration, regional distribution), rising educational levels,

norms and values, social classes (upper, middle, low), and

attitudes toward social responsibility

 Socio-cultural components will influence firm’s ability to

obtain resources, make its goods and services, and function

within the society.

 In different countries, sometimes even within a country,

there are substantial differences in attitudes, beliefs,

motivation, morality, superstition, and perception, as well as

other characteristics. Geert Hofstede (1928) developed a

model in which worldwide differences in culture are

categorised according to five dimensions:

 Power distance: degree of inequality among people which

the population of a country considers normal.

 Individualism vs. collectivism: degree to which people in a

country prefer to act as individuals or as members of a

group.

 Technology has changed the way business is done in

today’s world

 Companies reluctant to deploy new technologies

 Impossible to be in business without considering the issues

of technology

 Has become important in almost all parts of the business

 Dependency on technology has increased

What is technology?

It is the application of knowledge to production

 It is the sum of knowledge of the means and methods of

producing good and services(Worthington and Britton,

2015)

◦ knowledge, tools, techniques, and actions

 used to transform material , information, and other inputs into

finished goods and services

◦ plays pivotal role in creating and changing an organisation’s task environment

 Technological innovations affect corporate efficiency, culture

and relationship among employees, clients, suppliers and

customers leading to growth of company.

Computers:

 Companies rely on computers to do their various administrative works

 Saves time and paper

 Decreased the cost of business operations

Internet in Business

 Buying or selling of product to/from every part of the world

 E-mail reducing the time and money allowing faster processing

 Communication with other employees throughout the world

Advertise goods

 Monitoring the response of people to the product

 Providing support to the customers

E-business

 Conducting business over the internet

 IBM being the first one to use the term in October 1997

 Buying things, transact and carry out business functions

over internet

 Dell Computers reported sales of millions of dollars from

web

E-Banking

 User with a personal computer and a browser can get

connected to his bank’s website to perform any of the virtual

banking

Telecommuting

 Allows employees to work from their homes.

 Saves time and money.

 Video conferencing.

Has transformed existing business activities as well as

creating entirely new ones, involving the collection, handling,

analysis and transmission of information.

Effects of IT on different functions of businesses

 Administration – computer systems, computerisation of

records (making filing unnecessary)

 Communication – Fax machines, e-mail, video-conferencing

 Production – Computer-Aided Design (CAD)

 Storage and distribution – computerisation of stock control –

leading to just-in-time production

 Electronic Funds Transfer at Point of Sale (EFTOPS) – most

shops accept credit cards or switch cards

Social technologies include a wide range of various technological instruments that can be used by people, private or public sector organizations, or as an interaction tool between them. They include many of the technologies that are classified as ‘’social media’’, ‘’Web 3.0’’, and ‘’collaboration tools’’ (see fig. 1). Source: developed by authors

https://www.mruni.eu/mru_lt_dokumentai/fakultetai/socialiniu_

technologiju_fakultetas/Skarzauskiene%20final.pdf

Developed Economy'

 A developed economy it typically refers to a country with a relatively high level of economic growth and security. Common criteria for evaluating a country's degree of development are

 Economic indicators - per capita income or gross domestic product (GDP), level of industrialization, general standard of living and the amount of widespread infrastructure.

 Non-economic indicators - the Human Development Index (HDI) which reflects relative degrees of education, literacy and health.

“Emerging countries," "third world countries" and "developing countries" - are commonly used to refer to countries that do not enjoy the same level of economic security, industrialization and growth as developed countries. http://www.investopedia.com/terms/d/developed- economy.asp#ixzz3cWLTLbeN

https://www.mruni.eu/mru_lt_dokumentai/fakultetai/socialiniu_technologiju_fakultetas/Skarzauskiene final.pdf

http://www.investopedia.com/terms/d/developed-economy.asp#ixzz3cWLTLbeN

The rise of the BRICs

 The most impressive growth from 1990s was in four of the biggest emerging economies: Brazil, Russia, India and China (acronymed into the BRICs in 2001 by Jim O’Neill of Goldman Sachs).

 These economies have grown in different ways and for different reasons

 The remarkable growth of emerging markets in general and the BRICs in particular transformed the global economy in many ways

 Commodity prices soared and the cost of manufactures and labour sank.

The rise of the BRICs

 Global poverty rates tumbled.

 Gaping economic imbalances fuelled an era of financial vulnerability and laid the groundwork for global crisis.

 A growing and vastly more accessible pool of labour in emerging economies played a part in both wage stagnation and rising income inequality in rich ones.

 Fruits of this cheap labour were huge steps forward in global trade.

 China as the first “mega-trader” to grace the world stage since Britain’s imperial heyday

 Emerging world will continue to grow in economic importance. But the pace at which it does so will slow as the BRICs put the days of their steepest ascent behind them.

Other Acronyms

 The N11: Includes Bangladesh, Indonesia, Mexico, Nigeria and Turkey.

 Advanced Emerging Markets (AEMs): Brazil, Hungary, Mexico, Poland, South Taiwan

 Secondary Emerging Markets (SEMs): Argentina, Chile, China, Columbia, Czech, Egypt, India, Indonesia Republic, Malaysia Morocco Pakistan Peru, Philippines, Russia, Thailand, Turkey

Threats from emerging markets

 Increasingly large pool of skilled, but low-cost labour

 Undervalued currencies make their exports cheaper

 Inadequate protection of brand and other intellectual property

 State subsidy of industries to make them more competitive globally

Key risks and threat of emerging markets

• Political instability

• Cultural differences / sensitivities

• Variable approaches to financial & legal dealings (e.g. contractual law)

• Corruption and bureaucracy still an issue

• Emerging markets becoming major exporters

• Low-cost production makes developed economies uncompetitive in some markets

Increased foreign direct investments

 Developing nations were once the major motor vehicle manufacturing nations.

 In 2000, only one BRIC country, China, and another developing economy, Mexico, were among the top ten manufacturers of automobiles

 Ten years later, in 2010, three of four BRICs (Brazil, India, and China), and Mexico, were on the list of the top ten.

 Remarkably, China moved from being number 8 in 2000 (when it accounted for 3.5% of world production) to becoming by far the biggest automobile producing country in the world.

 In 2010, close to one quarter (23.5%) of all motor vehicles were made in China.

 Japan, the second largest producing country, manufactured a little over half of China’s level.

 Clearly developed economies have been losing their dominance in the automobile industry

Ethics and economics involve values

Commercially valuable uranium deposits in Australia occur

on sacred Aboriginal land

 Both disciplines deal with what we value

– Values affect our decisions and actions

 Solving environmental problems needs more than

understanding how natural systems work

– Values shape human behavior

 Ethics and economics give us tools to pursue the “triple bottom

line” of sustainability

– Environmental, economic, social

 Religious and spiritual beliefs shape our worldview and

perception of the environment

 Community experiences shape attitudes

 Political ideology: government’s role in protecting the

environment

 Economics

 Vested interest = the strong interest of an individual in the

outcome of a decision

◦ Results in gain or loss for that individual

 Ethics = the study of good and bad, right and wrong

◦ Moral principles or values held by a person or society

◦ Promoting human welfare, maximizing freedom, minimizing pain and suffering

◦ Relativists = ethics varies with social context

◦ Universalists = right and wrong remains the same across cultures and situations

 Ethics is a prescriptive pursuit: it tells us how we ought to behave

 Ethical standards = criteria that help differentiate right

from wrong

 Categorical imperative: the golden rule

◦ Most world religions teach this same lesson

◦ How would you feel if your sacred homeland was defiled with a uranium mine?

 Principle of utility = something right produces the most

practical benefits for the most people

◦ A uranium mine could benefit thousands of people

 Environmental ethics = application of ethical standards to

relationships between human and nonhuman entities

 Hard to resolve: it depends on the person’s ethical

standards and domain of ethical concern

 Should we save resources for future generations?

 When is it OK to destroy a forest to create jobs?

 Should humans drive other species to extinction?

 Is it OK for some communities to be exposed to more

pollution?

 Wealthy nations impose pollution on poorer nations

◦ Hazardous waste is expensive to dispose of

 Companies pay poor nations to take the waste

◦ It is dumped illegally

◦ It may be falsely labeled as harmless or beneficial

◦ Workers are uninformed or unprotected

 The Basel Convention prohibits international export of

waste

◦ But illegal trade and dumping continue

◦ The United States has not ratified this treaty

• Friction occurs between ethical and economic impulses

• Is there a trade-off between economics and the

environment?

– People say protection costs too much money, interferes

with progress, or causes job loses

– But environmental protection is good for the economy

• Traditional economic thought ignores or underestimates

contributions of the environment to the economy

– Human economies depend on the environment

 Even in mixed market economies, governments intervene

to:

– Eliminate unfair advantages held by single buyers or

sellers

– Provide social services (national defense, medical care,

education)

– Provide safety nets for elderly, disaster victims, etc.

– Manage the commons

– Mitigate pollution and other threats to health and quality

of life

Abebe, J (nd), “Environmental Factors Affecting Business”. [Online].

Available at:

http://www.academia.edu/15768537/Environmental_Factors_Affecting_Busi

ness

Worthington, I and Britton, C. (2015), The Business Environment, Seventh

Edition Pearson, London (Chapters 6, 8)

Withgott, J. and Brennan, S. () Lecture Notes, Chapter 6: Environment: The

Science behind the Stories, 4th Ed. [Online]. Available at:

SBS_4e_Lecture_Ch06.ppt - KSU Web Home

The Impact of the “BRIC Thesis” and the Rise of Emerging Economies on

Global Competitive Advantage: Will There Be a Shift from West to East?

Richard T. Mpoyi. [Online]. Available at:

http://www.na-businesspress.com/JABE/MpoyiRT_Web13_3_.pdf

RR-F4/Business and the Business Environment/Support/business environment Presentation1.pptx

Arguments for and against Britain’s membership of the EU

Arguments for exit of the EU

Campaigners for exit argue leaving the EU will result in an immediate cost saving, as the country will no longer contribute to the EU budget.

EU would no longer regulate trade costs, therefore Britain would be able to set Value Added Tax and other regulations for itself

Campaigners also say that we will regain our sovereignty and control over our own affairs and not be constrained by the European Parliament

(But, it said, we have only ourselves to blame. "We've made it that way" because too many of us "can't be bothered to vote" in European elections).

But nor, will UK sovereignty be absolute out of the EU: the British government would still be bound by membership of Nato, the UN, the World Trade Organisation, and various treaties and agreements with other nations

The UK would regain control over fishing rights around its coast and consumers could also benefit from the UK no longer having to follow policies like the Common Agricultural Policy, which costs Britain £1 billion a year in subsidies to foreign farmers and is believed to waste a lot of money on bureaucratic spending.

The cost of clothing could also go down without barriers from the Common Customs Tariff that prevents cheap clothing producers from entering the EU market. This could potentially lower supermarket costs

There are also security issues. This open border does not allow us to check and control people. (But the UK benefitted from being part of the EU, as well as Nato and the United Nations. It is through the EU that you exchange criminal records and passenger records and work together on counter-terrorism and need the collective weight of the EU when you are dealing with Russian aggression or terrorism.)

Immigration has been an issue and that we would regain control of the borders (though some say that immigration is positive). A drop in immigration would mean more jobs for the people who remained, but labour shortages could also hold back the economy, reducing its potential for growth.

The vast majority of small and medium sized UK firms do not trade with the EU so would benefit from less regulation from Europe Eurosceptics argue the vast majority of small and medium-sized firms do not trade with the EU but are restricted by a huge regulatory burden imposed from abroad

Institutions are seen as lacking democracy. While the European Parliament is directly elected, the powerful Commission which proposes legislation is not.

Because many of these laws supersede legislation made by individual states' parliaments, some see the system as undemocratic.

Arguments for remaining in the EU

One of the big advantages of the EU is free trade between member nations. The EU is a large market, accounting for 25% of world GDP. The EU is the biggest trading partner of the UK; 45% of UK exports are to the EU and 50% of imports are from the EU. If trade and investment falls after exit, then some of these jobs would be lost· Three million jobs in the UK are linked to trade with the EU. The UK also receives £66 million in investment for jobs everyday from the EU

· Britain could potentially lose out on being part of the largest free trade area in the world if negotiations between the EU and the US to set up such a market go through

Fears that carmakers could scale back or even end production in the UK if vehicles could no longer be exported tax-free to Europe were underlined by BMW's decision to remind its UK employees at Rolls-Royce and Mini of the "significant benefit" EU membership confers

EU-regulated costs assure that consumers get quality products for regulated prices. For example, the European Commission agreed on legislation in 2015 which made the prices for mobile fees while travelling to EU countries the same as mobile fees at home. This way travellers aren’t slammed with unexpected call, text and data charges.

Holiday pay, paid parental leave, regulated working hours and break times, anti-discrimination laws, and protection for workers when companies change ownership are all guaranteed by the EU — it would be up to Britain to keep up those guarantees if it leaves

Leaving the EU would cause energy bills to rise by £500m. Britain’s energy security is also stronger as part of the EU because it negotiates for energy as part of a larger bloc. Leaving the EU would also put the UK’s efforts to uphold the EU’s action plan for reducing air pollutants in jeopardy, while creating uncertainty for investors in the environmental sector

British farmers would stand to lose billions in EU subsidies. The Bank of England’s Monetary Policy Committee, meanwhile, claims that exit is likely to lead to a weak pound– good for UK exporters, bad for UK tourists and the price of imported goods

A middle-ground option would see the UK leave the political aspects of the European Union, meaning it is not bound by EU laws on areas such as agriculture, justice and home affairs, yet remains a member of the single market. But if this happened Britain would remain bound by virtually all EU regulations, including the working-time directive and almost everything dreamed up in Brussels in future." Meanwhile it would no longer have any influence on what those regulations

RR-F4/Business and the Business Environment/Support/Ground Rules2.doc

ICON College of Technology and Management

Ground Rules in the Classroom

· There should be no consumption of either food or drinks in the classroom except bottle of water.

· The front desks should be filled in to avoid any scattered sitting in rear seats

· Students cannot claim ownership of the seating position throughout the semester. Seating is based on “first-come-first-seat”.

· You must come on time. You cannot be signed in after 15 minutes of the start of the class but you are allowed in for another 15 minutes and you are not allowed to sign in until after the break. .

· You are not allowed to be late in the 2nd part of the lecture after break time

· You are not allowed to leave the class during the teaching time without the permission from the tutor for a valid reason, e.g., going to the toilet, answering an emergency call, for health-related problem, etc.

· There should be no side talking or disruptions when tutor is delivering lectures. To ask any questions, students should raise their hands to draw the tutor’s attention

· Speaking should be in English only in the class room

· Phones must be switched off during teaching time. However, in the second part of the lesson students may be allowed to use mobile phones, iPads, and laptops for academic purposes only, and with the consent of the tutor.

· There should be no charging of mobile phones or any electronic devises, including laptops in the classroom. There are additional charging sockets in the student common room which can be used during break time

· There should be mutual respects of each other. Any abusive language or behaviour and interruption of the lecture in any way is not acceptable

· You should not touch in and then leave the classroom or come back at the end of the session to touch out. Doing so will be regarded as absence from class and the tutor will report you to the responsible personnel in the Administration Office

· Come prepared always for your lesson.

RR-F4/Business and the Business Environment/Support/Session 10 Lecture Notes.pdf

Session 10 (LO4): SWOT analysis and the decision-making process within organisations [P5 & P6].

Prepared by: Dr Gilbert Zvobgo

ICTM

Using SWOT conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses [P5].

Explain how strengths and weaknesses interrelate with external macro factors [P6].

By the end of the session students should be able to:

 Understand the importance of SWOT and/or TOWS analysis and how these analyses can assist in the decision-making process within organisations.

 Microenvironment

 Includes those factors over which the business has some control

 Made up of elements created by the people within the business

 The internal environment is determined by the interactions of the people within it

◦ Over time these forces interact with each other to give each business its unique characteristics

 Owner-manager motives

 Personal attributes

 Technical skills

 Management competencies especially in

◦ Marketing

◦ Finance

◦ Management of people

 Entrepreneurial management behaviors, including

◦ Opportunity discovery and exploitation

◦ Resource acquisition and coordination

◦ Entrepreneurial networking

◦ Entrepreneurial decision-making

 Main elements of the internal environment include:

◦ Employees

◦ Managers

◦ Management style

◦ Corporate culture

◦ Company policies

Employees  Employees are a business’ most important resource

 It is important to recruit and select appropriate employees

 Those businesses that provide a work environment that maximises employee satisfaction achieve high levels of output

Managers  Every business — for-profit or not-for-profit;

small, medium-sized or large — needs effective management to succeed

 The skills and expertise of the management team in coordinating the business’ resources largely determine whether the objectives of the business are achieved.

Management style  Some managers value employee participation, and

they delegate authority to those below them in the hierarchy ◦ This empowers employees and creates self-

managing team ◦ This management style normally results in more

productive employees

 Alternatively, some managers are authoritarian or autocratic, and ‘rule with an iron fist’ ◦ These managers are often feared by their

employees ◦ Results in workers not achieving their best.

Corporate culture  Corporate culture is a set of mostly unwritten or

informal rules that spell out how people are to behave most of the time

 The belief, values, expectations, attitudes and behaviours of the people within the business combine to give a business its distinctive personality, known as corporate culture, or organisational culture

 This culture could be positive or negative.

Company policies  A company policy is an established set of broad

guidelines to be followed by all employees when dealing with important areas of decision making

 Such policies ensure fair treatment in matters such as disciplining, promoting and compensating employees

SWOT (TWOS) Analysis

 Internal factors include your resources and experiences

 General areas to consider:

◦ Human resources - staff, volunteers, board members, target population

◦ Physical resources - your location, building, equipment

◦ Financial - grants, funding agencies, other sources of income

◦ Activities and processes - programs you run, systems you employ

◦ Past experiences - building blocks for learning and success, your reputation in the community

 Don't be too modest when listing your strength

◦ Start by simply listing your characteristics (e.g., we're small, we're connected to the neighborhood), some of these will probably be strengths

 Although the strengths and weakness of your organization are your internal qualities, don't overlook the perspective of people outside your group

◦ Identify strengths and weaknesses from both your own point of view and that of others, including those you serve or deal with.

◦ Do others see problems--or assets--that you don't?

 How do you get information about how outsiders perceive your strengths and weaknesses?

◦ This can be gathered through focus groups, surveys and listing session.

• Cast a wide net for the external part of the assessment

• No organisation, group, program, or neighbourhood is immune to outside events and forces

• Consider your connectedness, for better and worse, as you compile this part of your SWOT list.

Forces and facts that your group does not control include:

• Future trends in your field or the culture

• The economy - local, national, or international

• Funding sources - foundations, donors, legislatures

• Demographics - changes in the age, race, gender, culture of those you serve or in your area

• The physical environment (Is your building in a growing part of town? Is the bus company cutting routes?)

• Legislation

• Local, national or international events

SWOT (TWOS) Analysis- sample 1

SWOT (TWOS) Analysis- sample 2

SWOT (TWOS) Analysis how strengths and weaknesses interrelate with external macro factors [P6].

SWOT Analysis- Example

Opportunities (external, positive)

1- chance to expand business 2- skilful but unemployed people

Threat (external, negative)

1- change in customer’s expectations 2- increase in competition

Strengths (internal, positive)

1- good financial situation 2- flexible operations system

Weaknesses (internal, negative)

1- not enough skilful staff 2- having unprofessional managers

 Strength-Opportunity strategies: ◦ For example, if one of your internal ‘strengths’ is

having good financial situation and one of the external ‘opportunities’ is a chance to expand your business in another city, you can use the available internal finance for investing in establishing new branches in another city to attract more customers.

SWOT Analysis Interrelating strengths & weaknesses with external factors [P6]

Opportunities (external, positive)

1- chance to expand business 2- skilful but unemployed people

Threat (external, negative)

1- change in customer’s expectations 2- increase in competition

Strengths (internal, positive)

1- good financial situation 2- flexible operations system

Weaknesses (internal, negative)

1- not enough skilful staff 2- having unprofessional managers

 Strength-Threats strategies: ◦ For example, if one of your internal ‘strengths’ is

having flexible operations system and one of the external ‘threats’ is constant changes in your customer’s expectations, you may not lose any customers if your flexible operations provide what your customers want.

SWOT Analysis Interrelating strengths & weaknesses with external factors [P6]

Opportunities (external, positive)

1- chance to expand business 2- skilful but unemployed people

Threat (external, negative)

1- change in customer’s expectations 2- increase in competition

Strengths (internal, positive)

1- good financial situation 2- flexible operations system

Weaknesses (internal, negative)

1- not enough skilful staff 2- having unprofessional managers

 Weakness-Opportunity strategies: ◦ For example, if one of the external ‘opportunities’ is

large number of skilful but unemployed people, and one of your internal ‘weaknesses’ is not having enough number of skilful staff, you can minimize your weakness by recruiting some of the skilful people.

SWOT Analysis Interrelating strengths & weaknesses with external factors [P6]

Opportunities (external, positive)

1- chance to expand business 2- skilful but unemployed people

Threat (external, negative)

1- change in customer’s expectations 2- increase in competition

Strengths (internal, positive)

1- good financial situation 2- flexible operations system

Weaknesses (internal, negative)

1- not enough skilful staff 2- having unprofessional managers

 Weakness-Threat strategies: ◦ For example, if one of the external ‘threats’ is

increase in competition, and one of your internal ‘weaknesses’ is having unprofessional managers, you can minimize this weakness by providing management training to your managers to become professional managers who know how to compete.

SWOT Analysis Interrelating strengths & weaknesses with external factors [P6]

Opportunities (external, positive)

1- chance to expand business 2- skilful but unemployed people

Threat (external, negative)

1- change in customer’s expectations 2- increase in competition

Strengths (internal, positive)

1- good financial situation 2- flexible operations system

Weaknesses (internal, negative)

1- not enough skilful staff 2- having unprofessional managers

Opportunities (external, positive)

Threat (external, negative)

Strengths (internal, positive)

if one of your internal ‘strengths’ is having good financial situation and one of the external ‘opportunities’ is a chance to expand your business in another city, you can use the available internal finance for investing in establishing new branches in another city to attract more customers.

if one of your internal ‘strengths’ is having flexible operations system and one of the external ‘threats’ is constant changes in your customer’s expectations, you may not lose any customers if your flexible operations provide what your customers want.

Weaknesses (internal, negative)

if one of the external ‘opportunities’ is large number of skilful but unemployed people, and one of your internal ‘weaknesses’ is not having enough number of skilful staff, you can minimize your weakness by recruiting some of the skilful people.

if one of the external ‘threats’ is increase in competition, and one of your internal ‘weaknesses’ is having unprofessional managers, you can minimize this weakness by providing management training to your managers to become professional managers who know how to compete.

SWOT Analysis Interrelating strengths & weaknesses with external factors [P6]

 In addition to writing a report (3000-4000 word long Individual Assignment), the CEO of your chosen organisation wants you to have a 5-10 minute individual PowerPoint presentation (and a 5 minutes allocated for questions) regarding the PESTLE analysis (LO3) and SWOT analysis (LO4) of the chosen company.

 So your Individual Presentation would be about two issues only:

1. the PESTLE analysis of the chosen organisation

2. the SWOT analysis of the chosen organisation

 Summarise all of your discussion in 5-15 slides

 Have citations (academic or professional) in every slide

 Use graphs or tables in addition to text

 Have headings instead of full explanations

 Use colour wisely (avoid too many colours)

 Don’t use unreadable or small font (not smaller than 15)

 Don’t put too much information in one slide

 Don’t use slow animations

 Try to memorise all relevant discussions

 Practice individually at home AND at the college

 Practice individually and to manage time

 Try to use suitable body language (e.g. moving your arm)

 Keep eye contact with students and the lecturer

 Have a note with bullet point while presenting

 Be prepared to answer questions by me and students

 Be 150% ready for presentation

RR-F4/Business and the Business Environment/Support/Session 8 Lecture Notes.pdf

Session 8 (LO3): The context of the macro environment (P4)

Prepared by: Dr Gilbert Zvobgo

ICTM

Using PESTLE identify the positive and negative impact the macro

environment has upon the business operations of your chosen

organisation. You should support your answer by specific examples

from your chosen organisation [P4].

By the end of the session students should be able to:

Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations

 Business environment = the surrounding conditions in which the business operates

 Divided into two broad categories

◦ The internal environment, or the micro environment

 Includes those factors over which the business has some control, such as employees, managers, management style, corporate culture and company policies

◦ The external environment

 Includes those factors over which the business has little control, such as economic conditions, government policy, competitors and technology

 It may be further divided into the operating environment

 Consists of factors which have an impact on firms nationally and internationally

 Includes:

◦ Political

◦ Economic

◦ Social

◦ Technological

◦ Legal

◦ Environmental

 Political factors

◦ Stability, Support for establishing new business

 Economics factors

◦ Rate of inflation, levels of unemployment

 Social and demographic influences

◦ Age profile of the population

 Technological changes

◦ New technologies, effects of technology on work

 Legal factors

◦ Employment law, taxations, competition law

 Environmental factors

◦ Increased temperature & number of flooding, storms

 An acronym for Political ,Economy, Social, Technological, Environmental, and Legal is a tool used to evaluate factors impacting a business or organisation

 Factors that can impact the business environment externally in health care industry

 These factors can determine the success or failure of a business involved in healthcare

 The PESTLE analysis technique can be used to help the organisation to focus on what is driving changes in the external environment.

 The approach is based on the 3 circles model, which describes three aspects of an organization business environment: ◦ The internal organisational Environment, where

decisions making is largely focused on operational issues and resource management

◦ The external transaction environment, where an organization’s customers, competitors, suppliers and external stakeholders sit.

◦ The wider contextual environment. Trends and events in the contextual environment are not by definition- of immediate relevance to the organization. These trends are however, shaping developments of consumer and competitor in the transaction environment.

 The purpose of conducting PESTEL analysis in an organisation is to look at the contextual environment, to characterize the changes drivers such as new technologies, new regulations, new business models and news business strategies that are operating and then consider what, if any effect they have on the organisation’s future activities.

 It looks at the Sociological, technological, economical, environmental and political.

 International: Britain is part of the European Union: Free movement of goods/money/labour

 National: The Prime Minister leads the ruling party and appoints

 Senior Cabinet Ministers: who are in charge of key areas of government

 Local: Councils are elected who represent their local populations

Government may support:

 Private Sector

◦ Create a competitive environment

◦ Incentives such as grants for new enterprise

 Public Sector

◦ Cover loses/subsidise non-profit activities

 Such as education and health.

 Voluntary Sector

◦ Supports cash grants such as National Lottery and tax relief

 Impact on Business: ◦ Impact on costs ◦ Impact on competitiveness ◦ Impact on profitability ◦ Impact on behaviour ◦ Impact on decision making

 Economic growth

 International trade

 Exchange Rate

 Inflation

 Consumer confidence

 Minimum wage

 Demographic issues (e.g. population growth or decline);

 Changes in structure (e.g. ageing);

 Households and families;

 Education; attitude to work;

 Religions;

 Attitudes to male and female roles;

 Ethics

 Changes in physical sciences

 Internet

 Energy use and costs

 Rates of technological obsolescence

 New discoveries

 Govt and Industry focus on tech

 Govt spending on research

 Increase in the temperature

 More frequent natural disaster such as flooding

 Situation of the Ozone layer

 Pollutions

 How people’s perception and reaction to environmental issues can affect a business.

 Being or not being environmentally friendly

 Company Law

◦ Providing framework for businesses

 Contract Law

◦ Protecting consumers under sale of Goods and Services

 Employment Law

◦ Employment contracts

 Competition Law

◦ Ensuring fair and honest trading

 Equal Pay

 Discrimination

 Health and Safety

 Working Time Directive

 Location / Planning

 Political (Certain Countries)

 Sales of Good Acts

 Trade Descriptions

 Taxes

Direct tax Indirect tax

Income tax VAT

National Insurance Excise duties

Corporation tax Air passenger duty

Capital gains tax Betting and gaming

Council tax Land fill levy

 A business’ operating/task environment is made up of stakeholders external to the business who have a direct impact on the operation of the business

 The four main stakeholders are:

◦ customers

◦ suppliers

◦ competitors

◦ interest groups

 Each stakeholder has a self-interest in the business and places different demands on the business

Customers  Today’s consumers are astute, better educated and

informed  Increasingly prepared to seek compensation if they

believe they have either been unfairly treated or purchased a product that did not perform as promised

 Consumer groups are also prepared to mount publicity campaigns aimed at embarrassing those businesses that do not act ethically or responsibly

 Are increasingly putting pressure on businesses (through their spending decisions) to be environmentally aware, demanding products that are ‘clean, green and safe’

 A business needs to recognise and assess changes in consumer tastes so it can constantly satisfy the consumers’ needs and wants

Suppliers

 Provide the resources that the business needs to conduct its operations

◦ Examples of such resources are raw materials, equipment, machinery, finance and information

 Suppliers may be individuals or organisations

 Businesses often have have a number of suppliers

◦ So they are less vulnerable to supply difficulties and the impact of price rises, need to develop a reliable network of suppliers

Competitors

 Competitors are other businesses that offer rival products or services

 Competition can stimulate greater efficiency in production and usually results in a better quality product or service at the lowest cost to the business

 Business owners should aim to achieve a sustainable competitive advantage over their competitors so as to capture a larger share of the market

 A business needs to respond to any change in the actions of its competitors

Interest groups

 Interest groups attempt to directly influence or persuade an organisation to change its policies

 Three of the most common groups attempting to influence businesses are: ◦ Trade unions, which employees may join in an attempt to

improve their pay and conditions

◦ Consumer groups, which are lobby groups that monitor a business’ performance in terms of product safety, packaging, pricing and advertising

◦ Specific issue groups, which combine to focus on one specific area such as youth unemployment, social justice, environmental protection

 Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level (Porter 2008) cited in (Jurevicius, 2013)

 The five forces govern the profit structure of an industry by determining how the economic value it creates is apportioned. That value may be drained away through five forces (Porter, 2008): ◦ the rivalry among existing competitors, ◦ bargained away through the power of suppliers ◦ bargained away through or the power of customers or

be ◦ constrained by the threat of new entrants or ◦ constrained by the threat of substitutes

https://www.mindtools.com/pages/article/newTMC_08.htm

 Strategy can be viewed as building defenses against the competitive forces or as finding a position in an industry where the forces are weaker (Porter, 2008).

 Changes in the strength of the forces signal changes in the competitive landscape critical to ongoing strategy formulation

 http://www.oxlearn.com/arg_Marketing- Resources-PESTLE---Macro-Environmental- Analysis_11_31

RR-F4/Human Resource Management/Module Booklet/Harvard_Referencing.pdf

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ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Harvard Referencing and Citation Guidelines

Referencing:

This is a method used to demonstrate to the assessors that a learner has conducted a thorough

and appropriate literature search. Equally, referencing is an acknowledgement that you have

used the ideas and written material belonging to other authors in your own work. As with all

referencing styles, there are two parts: Citing and the Reference List.

Referencing list format:

points or numbering)

PRINTED/PUBLISHED SOURCES

Book: by one Author

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Reference List: Barker, R., Kirk, J. and Munday, R.J. (1988) Narrative analysis. 3rd ed. Bloomington: Indiana University Press. In text reference for the above examples:

Book: Translated Author (surname), Initials. (Year) Title of book. Translated from (language) by (name of translator) Place of publication: Publisher.

Canetti, E. (2001) The voices of Marrakesh: a record of a visit. Translated from German by J.A.Underwood. San Francisco: Arion.

Multiple Books by same Author published in the same year Author (surname), Initals.(Year a/b/c) Title of book. Place: Publisher.

Soros (1966a) mentioned in his …………… According to Soros (1966b) modern literature……….

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Chapter of edited book or Secondary reference for Book and Journal

When an author refers to another author’s work and the primary source is not available

References List:

N.B. You are advised that secondary referencing should be avoided wherever possible and you should always try to find the original work

Journal Articles

Boughton, J.M. (2002) The Bretton Woods proposal: an in-depth look. Political Science Quarterly, 42(6), pp.564-78.

Foreign Journal

Author (surname), initials. (Year) Title of article [square brackets] Journal title Edition Page number Language of translation (round brackets) References List:

Caballero, D. (2003) [Policing without borders] Cambi16. 1(668) pg. 24 (in Spanish)

Report

Author (surname), initials. (Year) Title of report (underline or italicise) Publisher Report code and number (in brackets) References List:

Dearing, R. (1996) Review of qualifications for 16 – 19 year olds: quality and rigour in A Level examinations. London: SCAA Publications (COM/96/467)

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Annual Report:

Corporate author, Year of publication. Full title of annual report (if available), Place of Publication: Publisher.

Hounsome, I. W. (2001) Factors affecting the design and performance of flexible ducts in trench reinstatements. Unpublished Ph.D. thesis. Napier University.

Newspaper

Article with author

Author (surname), initials. (Year) Article Title (underline or italicise) Name of Newspaper Date (day, month, year) Page number References List:

Ward, L. (2004) Diploma plan to reward lower and higher abilities. The Guardian.18th February, p.4.

Article without an author

Title of publication Year of publication (in brackets) Title of article (underline or italicise) Day and Month Page number References List:

The Guardian (2004) HSBC CEO has come down at last. 23rd November, p. 10.

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ELECTRONIC SOURCES

Electronic Book (e-book)

Author (surname), initials. (Year) Title of book (underline or italicise) Name of e-book supplier [Online] Available at: URL (Date accessed) References List:

Articles in Electronic Journal

Haliday, J. (2004) 'Ford dealers test custom cable ads', Advertising age,75 (42), pg. 6. Proquest [Online]. Available at: http://proquest.umi.com/ (Accessed: 23 November 2004).

Article in Internet Journal Database

Lloyd, J. (2001) Blessed are the pure in heart: globalisation. New Statesman, 23 April [Online]. Available at: http://www.findarticles.com/p/articles(Accessed: 23 November 2004).

Online Material in the Internet without Date

Author (surname), initials. (Year) Title of article (underline or italicise) [Online], issue [Online] Available at: URL of web page (Date accessed).

References List:

Lloyd, J. (No Date) Blessed are the pure in heart: globalisation [Online]. Available at: http://www.findarticles.com/p/articles (Accessed: 23 November 2004).

Online Material from Internet without Author’s Name

Name of the Organisation, (Year) Title of article (underline or italicise) [Online] Available at: URL of web page (Date accessed).

References List: Marks & Spencer (2010) Marks and Spencer’s Corporate Strategy [Online]. Available at: http://www.m&s.co.uk/corporate/ (Accessed: 23 November 2004)

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Images from the Internet

Author (surname), initials. (Year) Title of image (underline or italicise) [Online image] Available at: URL (Date accessed) References List:

Marshall, J. (2000) Cathedral clock. [Online image]. Available at: http://www.westminstercathedral.org.uk/art/art_cathclock.html (Accessed 23 November 2004).

OTHER SOURCES

Computer Programme

References List:

Sanders, B. and William, B. (2001) Java in 2 semesters. (version 2) [computer programme] Microsoft Inc. New York.

Atlas

As for books, using the title page to find the information

References List:

The times atlas of the world (2004) London: Times Books.

Video / Film

Title of programme/film (underline or italicise) Year of distribution (in brackets) Director [Videocassette] Place of distribution: distribution company

References List

All about Eve (1977) Directed by Joseph Mankiewiez [Film]. United States: Twentieth Century Fox.

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Television programme Title of programme (underline or italicise) Year of publication (in brackets) Name of channel Date of transmission (day/month/time)

References List

Coronation Street (2004) ITV1, 25 November. 19.00hrs.

Audiocassette/CD/DVD

Author (if available, if not use title first) Year of publication (in brackets) Title of recording (underline or italicise) [Audiocassette] Place of publication: publisher. References List

Buenos: world Spanish (1995) [Audiocassette or CD or DVD]. London: BBC Books.

QUOTATIONS AND CITING INSIDE THE TEXT

You can incorporate references and quotations in a number of ways. The following examples use the Harvard Referencing.

Short quotations of a sentence or two are enclosed with quotation marks (“…”) and included in the main text.

Short Quotation

In this example, you are making a direct quote. Up to two lines can be included in the body of the text and must include the page number.

Smith (2003, p. 11) states that “Harvard referencing has to be done accurately”

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Longer Quotation

This should be indented in a separate paragraph. If part of the quotation is omitted, then this can be indicated by three dots.

Citations (inside the text)  If the originator’s name occurs naturally in the sentence, the year of publication

should follow in brackets. Example

Smith (2003) found that…or, In a recent study Smith (2003) argued that…

 If the author’s name would not naturally be included in the sentence add the author’s

name and year of publication in brackets i.e. Example

Management theories have become much more diverse (Anderson, 1996)

 For publications by two authors:

Example

In a recent study (Smith & Jones, 2003) it was argued that…

 If you are referring to a particular page or section of a work and the author’s name

would naturally be included in the sentence the date and page numbers follow in brackets i.e.

Example

In a recent study Smith (1996, p.26) argued that….

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 If the author’s name will not normally be included in the sentence all information is given in brackets i.e.

Example

In a recent study (Smith, 1996, p.26) it was argued that…

 In cases where the name of the author cannot be identified, the item should be referred to by title:

Example

Figures in a recent survey (Tourism trends, 2003. p. 12) showed that…

 In cases where the date of an item cannot be identified, the item should be cited:

Example

The earliest report (Smith, no date, p. 231) showed that…

 If the author and date are unknown:

Example

 When you refer to a corporate publication e.g. a company report, use the Company

Name: Example

A survey (Tourism trends, no date) showed that…

The recession affected………..(Hanson Trust plc, 1990)

RR-F4/Human Resource Management/Module Booklet/Unit 3 HRM Assignment Brief Feb 2018 GZ.pdf

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT Pearson BTEC HND in Business (RQF) Unit 3 Human Resources Management

Assignment Brief

Session: February 2018

Programme title TNA67 Pearson BTEC HND in Business (RQF)

Unit number and title Unit 3 Human Resources Management

Unit Type Core

Unit Level and Credit Value

Level 4 15 Credit

Assessor (s) Prof Zakir Hossain, Mr Emmanuel Igwe, Mr Andrew Appiah

Issue Date 3 March 2018

Final assignment submission deadline

11-16 June 2018

Late submission deadline

18-23 June 2018

Resubmission deadline TBA

Feedback

Formative feedback will be available in class during the semester.

Final feedback will be available within 2 weeks of the assignment submission date.

General Guidelines

 The work you submit must be in your own words. If you use a quote or an illustration from somewhere you must give the source.

 Include a list of references at the end of your document. You must give all your sources of information.

 Make sure your work is clearly presented and that you use correct grammar.

 Wherever possible use a word processor and its “spell-checker”.

Internal verifier Dr Gilbert Zvobgo

Signature (IV of the brief) *

[email protected] Date 1/3/18

mailto:[email protected]

Assignment Brief – continued

ICON College of Technology and Management Pearson BTEC HND in Business (RQF)

Unit 3: Human Resources Management Session: February 2018

Coursework Recommended Word limit: 3,000–4,000

This Unit will be assessed by assignment and an individual portfolio. You are strongly advised to read “Preparation guidelines of the Coursework Document” before answering your assignment. ASSIGNMENT Assignment Context and Scenario: As a newly appointed Human Resource Manager for your chosen UK-based organisation, you

have been tasked with leading on the restructuring of the department as part of organisational

change.

The Human Resources (HR) department will be restructured based on the findings of a review

report, which you have been asked to complete. You are to review the effectiveness of the HR

function within the organisation, researching the role and scope of HR and reviewing and

assessing the main HR functions within the organisation. This has to be submitted as a case

study report.

The case study assessment report should cover then following:

1. An overview of the organisation.

2. An explanation on the purpose of the HR function and the key roles and responsibilities of the HR function.

3. An assessment of the approach to workforce planning, recruitment and selection, development and training, performance management and reward systems.

4. The approach to and effectiveness of employee relations and employee engagement, and comment on the adoption of flexible organisation and flexible working practice and ‘employer of choice’.

5. Analysis of the internal and external factors that affect Human Resource Management decision- making, including key areas of employment legislation

6. An application of the Human Resource Management practices in a work-related context. What you must do The following tasks are required to be carried out: LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing in your chosen organisation with talent and skills appropriate to fulfil business objectives. Explain the purpose and the functions of HRM, applicable to workforce planning and resources in your chosen organisation. [P1] To achieve M1, you should assess how the HRM functions in your chosen organisation can provide talent and skills appropriate to fulfil business objectives using appropriate theories and models.

Assignment Brief – continued

Using examples from your chosen organisation, explain the strengths and weaknesses of different approaches to recruitment and selection. [P2] To achieve M2, you should evaluate the strengths and weaknesses of different approaches to recruitment and selection using suitable theories and models. To achieve D1 you should critically evaluate the strengths and weaknesses of different approaches supported by specific examples and independent judgement. (NB: To obtain D1 you must meet both M1 and M2 criteria). LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an organisation

Explain how different HRM practices benefit the management and employees of your chosen

organisation [P3].

To achieve M3, you should identify and analyse the methods using appropriate models and specific

examples of how they benefit both the employers and employees of your chosen organisation. Evaluate the effectiveness of different HRM practices in your chosen organisation in terms of raising organisational profit and productivity [P4].

To achieve D2, you should critically evaluate HRM practices and their application, within the content

of your chosen organisation, using a range of specific examples and coherent and lateral thinking.

(NB: To obtain D2 you must meet both M3 and M4 criteria).

LO3 Analyse internal and external factors that affect Human Resource Management decision- making, including employment legislation

Analyse the importance of employee relations in your chosen organisation in respect to

influencing HRM decision-making. [P5]

Identify the key elements of employment legislation and the impact it has upon HRM decision- making in your chosen organisation. [P6] To achieve M4, you should evaluate the key aspects of employee relations and employment legislations in respect to influencing HRM decision-making with the application of relevant in your chosen organisation. To achieve D3, you should critically evaluate the employee relations and the application of HRM practices that inform and influence decision-making demonstrating convergent/lateral/creative thinking in your organisation. LO4 Apply Human Resource Management practices in a work-related context. As the Human Resource Manager in the Human Resources (HR) department of your chosen

organisation, you have been asked to take part in testing the new recruitment and selection

process. You have been asked to work in a small team (3–4 members) to design a job

specification for a particular job role and then you will take part in an interview simulation for a job

role advertised by another team.

The aim of your team is to test the recruitment and selection process and each complete an

individual document portfolio to submit. The document portfolio should include:

Assignment Brief – continued

1. The design of a job specification for one of a number of given positions in the organisation.

2. A CV for each student, tailored to apply for one of the positions advertised by another team.

3. Documentation of preparatory notes for interviews, interview notes based on selection criteria and a justified decision of the candidate selected.

4. A job offer to the selected candidate.

5. An evaluation of the process and the rationale for conducting appropriate HR practices. Illustrate the application of HRM practices in a work-related context, using specific examples from your chosen organisation [P7]. To achieve M5, you should provide a rationale for the application of specific HRM practices based on your chosen organisation. To achieve D3, you should critically evaluate employee relations and the application of HRM practices that inform and influence decision-making in your organisation.

Grading Criteria

Learning Outcome Pass Merit Distinction

LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an organisation with talent and skills appropriate to fulfil business objectives

P1 Explain the purpose and

the functions of HRM,

applicable to workforce

planning and resourcing an

organisation.

P2 Explain the strengths

and weaknesses of different

approaches to recruitment

and selection.

M1: Identify and explain

the HR functions to fulfil

business objectives.

M2: Evaluate the

strengths and

weaknesses approaches

to recruitment and

selection

D1: Critically evaluate the

strengths and weaknesses

of approaches to

recruitment and selection

D2: Evaluate the HRM

practices and their

application

LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an organisation

P3 Explain the benefits of

different HRM practices

within an organisation for

both the employer and

employee.

P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit and productivity.

M3: Explore different

methods used in HRM

practices

LO3 Analyse internal and external factors that affect Human Resource Management decision- making, including employment legislation

P5 Analyse the importance

of employee relations in

respect to influencing HRM

decision- making.

P6 Identify the key elements of employment legislation and the impact it has upon HRM decision- making.

M4: Identify the key aspects of employee relations management and employment legislations

D3: Critically evaluate employee relations and the application of HRM practices that inform and influence decision-making in an organisational context

LO4 Apply Human Resource Management practices in a work- related context

P7 Illustrate the application of HRM practices in a work- related context, using specific examples.

M5: Provide a rationale for the application of specific HRM

Assignment Brief – continued

Relevant Information Guide to student

1. Preparation guidelines of the Coursework Document

referencing system. g. You should provide references using the Harvard referencing system. h. Do not use Wikipedia as a reference.

2. Plagiarism and Collusion

Any act of plagiarism or collusion will be seriously dealt with according to the College regulations. In this context the definitions and scope of plagiarism and collusion are presented below: Plagiarism is presenting somebody else’s work as your own. It includes copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort. Collusion is copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism or collusion will be investigated and if found to have occurred will be dealt with according to the College procedure (For details on Plagiarism & Collusion please see the Student Handbook).

3. Submission

a. Initial submission of coursework to the tutors is compulsory in each unit of the course. b. The student must check their assignments on ICON VLE with plagiarism software Turnitin

to make sure the similarity index for their assignment stays within the College approved level. A student can check the similarity index of their assignment three times in the Draft Assignment submission point located in the home page of the ICON VLE.

c. All Final coursework must be submitted to the Final submission point into the Unit (not to the Tutor). The student would be allowed to submit only once and that is the final submission.

d. Any computer files generated such as program code (software), graphic files that form part of the coursework must be submitted as an attachment to the assignment with all documentation.

e. Any portfolio for a Unit must be submitted as a hardcopy to examination office. f. The student must attach the tutor’s feedback from the First submission in between the cover

page and the answer in the case of Resubmission. 4. Good practice

a. Make backup of your work in different media (hard disk, memory stick, etc.) to avoid distress for loss or damage of your original copy.

5. Extension, Late Submission and Resubmission

a. If you need an extension for a valid reason, you must request one using an Exceptional Extenuating Circumstances (EEC) form available from the College examination office and ICON VLE. Please note that the tutors do not have the authority to extend the coursework deadlines and therefore do not ask them to award a coursework extension. The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick, and should be submitted to the Examination Office.

b. Late submission will be accepted and marked according to the College procedure. It should

Assignment Brief – continued

be noted that late submission may not be graded for Merit and Distinction. c. All late coursework must be submitted to the Late submission point into the unit (not to

the Tutor) in the ICON VLE. A student is allowed to submit only once and that is also treated as the final submission.

6. Submission deadlines Online to the ICON College VLE Final Submission date: 11-16 June 2018 Late Submission date: 18-23 June 2018 Glossary:

Apply: practice the knowledge and skills of HRM.

Analyse: Identify separate factors, say how they are related and how each one contribute to the topic. Assess: to determine the importance, size and value of something. Give careful consideration to all the factors or events that apply or identify which are the most important or relevant. Comment: Give your view after you have considered all the evidence. In particular decide the importance of all the positive and negative aspects. Critically evaluate: Point out differences which are particularly significant. Describe: Give a clear description that includes all the relevant features- thin of it as ‘painting a picture with words. Evaluate: review the information then bring it together to form a conclusion. Give evidence of each of your views or statement. Explain: Set out in detail the meaning of something, with reasons. More difficult than describe or list; it can help to give an example to show what you mean. Start by introducing the topic then give the ‘how’ and ‘why’ OR provide details and give reasons and/or evidence to clearly support the argument you are making. Examine: When you evaluate you look at the arguments for and against an issue. Identify: Point out or choose the right one/ give a list of main features. Illustrate: Include examples or a diagram to show what you mean. Provide: Make available for application in practice.

RR-F4/Human Resource Management/Module Booklet/Unit 3 HRM SoW - Feb 18.pdf

Page 1 of 4

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Pearson BTEC HND in Business (RQF) Unit 3 Human Resource Management

Scheme of Work

Session: February 2018

Course Code TNA67: PEARSON BTEC HND in Business (RQF)

Scheme of Work

This unit is aimed at achieving the following learning outcomes: LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an orgnisation with talent and skills appropriate to fulfil business objectives. LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an organisation LO3 Analyse internal and external factors that affect Human Resource Management decision-making, including employment legislation LO4 Apply Human Resource Management practices in a work-related context.

Programme Title TNA67 Pearson BTEC in Business

Unit number and Title Unit 3 Human Resource Management

Unit Type Core

Unit Level Level 4 15 Credit

Sessions Learning Outcome Session Activities

Session1 Lecture 2 hours Tutorial 2 hours

LO1: To introduce the Unit’s content and the Unit assessment

Introduction to the module learning outcomes and the structure of the weekly activities. Unit learning outcome , Syllabus, and Assignment briefing

Session 2 Lecture 2 hours Tutorial 2 hours

LO1 Topics: Definitions of HRM, functions and concepts Workforce planning

What are the main functions and activities of HRM? The ‘Best Fit’ approach vs ‘Best Practice’. The hard and soft models of HRM. Sample activities: • Small groups group discussion. • Class discussion – explore and discuss the concept of HRM. Types of labour market, labour market trends and PESTLE. The internal labour market. Analysing turnover, stability and retention. The impact of legal and regulatory frameworks. The impact that advances in technology have had upon improving the efficiency of HR practices Sample activities: • Group discussion on impact of technology on HR practices. • Quizzes on PESTLE • Questions and answer activity on legal and regulatory frameworks

Session 3: Lecture 2 hours Tutorial 2 hours

LO1 Topic: Recruitment, Selection and on-boarding and induction

Sources of recruitment: internal vs external recruitment. Job analysis, job descriptions, personal specifications and competency frameworks Main methods of selection: strengths and weaknesses of each. Reliability and validity as key criteria. The issues affecting successful induction and socialisation of employees. Sample activities: • Group activity – Design the documents for recruitment and selection • Individual task – Design induction programme for newly

Page 2 of 4

appointed employees. Formative Feedback

Session 4: Lecture 2 hours Tutorial 2 hours

LO2 Topic: Learning Development and Training

Differentiating development and training. Identifying training needs − the training gap. Types of training. Evaluation of training. Sample activities: • Individual exercise on identifying training needs. • Question and answer activity • Group exercise on types of training and evaluation

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Review of academic requirements and submission format. Formative Feedback

Session 5: Lecture 2 hours Tutorial 2 hours

LO2 Topic: Job and workplace design

Reward management: extrinsic and intrinsic rewards from work. The link between motivational theory and reward. Series of job design-job extension techniques. The flexible organisation: Types of flexibility: numerical, structural and functional flexibility. Models of flexible organisations (e.g. Handy, Atkinson). Flexible working options in modern organisations. Benefits to employers and benefits to employees of flexible working practices. Sample activities: • Group discussion on extrinsic and intrinsic rewards and presenting a report. • Student debate on flexibility in organizations

Session 6 Lecture 2 hours Tutorial 2 hours

LO2 Topic: Performance and reward management

Performance management and methods used to monitor employee performance. Types of payment and reward system. Methods of a determination. Sample activities: • Group exercise on analysing a case study on reward management. Formative Feedback

Session 7 Lecture 2 hours Tutorial 2 hours

LO3 Topic: Employee relations

Maintaining good employee relations. Strategies for building and improving employee relations and engagement.. Sample activities: • workshop and seminar on employee relations • Group activity – How to engage employee.

Session 8: Lecture 2 hours Tutorial 2 hours

LO3 Topic: Employee relations and the law

The purpose of employment law. Key legal issues and constraints (e.g. equality, data protection, health and safety, redundancy, dismissal, employment contracts). Ethical and social responsibilities. Sample activities: • Group activity on UK legal and regulatory framework for employment. • Workshop on CSR.

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Review of academic requirements and submission format. Formative Feedback

Session 9: Lecture 2 hours Tutorial 2 hours

LO3 Topic: Trade unions and workplace representation.

The role of trade unions − local/national. Collective agreements. Discipline, grievances and redundancy − best practice. Use of some exercise materials. Sample activities: • Group activity on analysing a case study on role of trade union in the UK.

Page 3 of 4

• Workshop on disciplinary procedures. Formative Feedback

Session 10 Lecture 2 hours Tutorial 2 hours

LO4 Topic: Job and person specifications

Preparing job specifications and person specifications applicable to the recruitment context and needs of the organisations, taking into account legislation and company policies. Sample activities: • Group activity – preparing job and person specifications.

Session 11 Lecture 2 hours Tutorial 2 hours

LO4 Topic: Recruitment and selection in practice: The impact of technology on improving the recruitment and selection process; the use of online resources, digital platforms and social networking. Designing and placing job advertisements. Shortlisting and processing applications. Interviewing preparation and best practice. Selection best practice.

The impact of technology on improving the recruitment and selection process; the use of online resources, digital platforms and social networking. Designing and placing job advertisements. Shortlisting and processing applications. Interviewing preparation and best practice. Selection best practice. Sample activities: • Mini exercise: designing job advertisement and mock interviews • Question and answer workshop on recruitment and selection.

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Review of academic requirements and submission format. Formative Feedback

Session 12 Assignment workshop and re-cap

Review of student progress on the assessment. Sample activities: • Brief tutor-led overview of assessment requirements. • Open question and answer activity to address general questions and concerns. • Review of academic requirements and submission format. • Individual student queries and questions

Session 13 Study week

Session 14 Final Assignment Submission

Page 4 of 4

Pearson Edexcel Standard Verifier (EE): Cheran Stevens Standard Verifier (EE) Visit Date: TBA Recommended Reading Text Books: Armstrong, M. (2010) Armstrong’s Handbook of Human Resource Management Practice, 11

th edition, Kogan Page

Bailey, S. (2011), Academic Writing – A Handbook for International Students, London, Routledge Bratton, J. and Gold, J. (2007) Human Resource Management: Theory and Practice, Palgrave McMillan Burns, T. and Sinfield, S (2016), Essential Study Skills: The Complete Guide to Success at University, Los Angeles, SAGE. Swales, J. M and Feak, C, B. (2012), Academic Writing for Graduate Students, Ann Abor, The University of Michigan. Torrington, D. et al (2007) Human Resource Management, Pearson/Prentice Hall Butterworth-Heinemann, UK Journals: Harvard Business Review (available at ICON Library) Human Resource Management Journal Journal of Management Studies (available at ICON Library News Paper Broadsheet newspapers have weekly section on human resource management matter. Websites: Pearson Resources: Student Portal: HN Global Please access HN Global for additional resources support and reading for this unit. For further guidance and support on presentation skills please refer to the Study Skills Unit on HN Global. Link to: https://www.highernationals.com/

https://www.highernationals.com/

RR-F4/Human Resource Management/Support/Academic Writing 2.pdf

Academic writing skills

Writing, referencing & using electronic resources

“Care in the choice of one’s words is the respect that the mind

pays

to the instrument of its own being”

Agenda

• Writing

– What is academic writing

• Referencing

– Books

– Articles

– Others

• Electronic resources

Academic writing

• What is it all about?

Writing

• Academic writing is Formal

– No exaggeration (Not: extremely important)

– Impersonal (no use of “I am”)

– Direct to the meaning

– No final judgment!! Always allow for arguing and

accepting other opinions!!

WHAT DOES FORMAL WRITING

LOOK LIKE?

• Focus on the issue, not the writer Keeping

your writing objective and impersonal can make

it more convincing.

– It will be argued that the benefits of sales

promotion outweigh the disadvantages.

– I will argue in this assignment that ...

Choose words with precise

meanings

• Avoid words with vague meanings

– Compare:

• The writer looks at the issue

– with

• The writer examines the issue.

• The second option is more formal.

– Formal choices:

• He states … maintains … argues

– Informal choices:

• He says … talks about …

Add some style

• Writing is a very logical exercise, adding

style to it will enhance clearness and

power of convincing…

– Phrases for transition

– Phrases for emphasis

– Phrases for counterpoint

Phrases for transition

• Regarding

• Admittedly

• Consequently

• As a result

• Ultimately

• According to

• For this reason

Phrases for emphasis

• Moreover

• In fact

• Additionally

• For example

• In point of fact

• As a matter of fact

• Indeed

Phrases for counterpoint

• Conversely

• On the other hand

• However

• Nevertheless

• Notwithstanding

• Nonetheless

• Yet

• Despite

• Although

• Instead

Referencing

• What does referencing mean?

• Why should I include references in my

work?

• How do I reference my work?

What does referencing mean?

• When writing an academic piece of work

you need to acknowledge any ideas,

information or quotations which are the

work of other people. This is known as

referencing or citing.

Why should I include references

in my work?

• You should include references in order to:

– acknowledge the work of others

– provide evidence of your own research

– illustrate a particular point

– support an argument or theory

– allow others to locate the resources you have used

• And most importantly:

– avoid accusations of plagiarism

How do I reference my work?

• Your references should be consistent and

follow the same format. Various systems

have been devised for citing references,

but most Schools use the Harvard system

Referencing while writing

• References will be cited in your work in

two places: -

– 1) Where a source is referred to in the text

(Citation)

– 2) In a list (the Bibliography/List of references)

at the end of the assignment.

Citing references in the text

• Citing the author in the text

• Whenever a reference to a source is

made, its author's surname and the year

of publication are inserted in the text as

in the following examples...

Citing references in the text Cont.

– Dogs were the first animals to be

domesticated (Sheldrake, 1999).

• If the author's name occurs naturally in the

sentence the year is given in brackets .>>

– Sheldrake (1999) asserts that dogs were the

first animals to be domesticated.

Using direct quotes

• If you quote directly from a source you must

insert the author’s name, date of publication

and the page number of the quotation.

– ‘The domestication of dogs long predated the

domestication of other animals.’ (Sheldrake, 1999,

p.5).

• The page number should be given at the end of

the quote, in separate brackets if necessary, as

in the example below.

– Sheldrake (1999) asserts that the ‘domestication of

dogs long predated that of other animals.’ (p.15).

Citing works by more than one

author

• If your source has two authors you should

include both names in the text.

– Anderson and Poole (1998) note that a

‘narrow line often separates plagiarism from

good scholarship.’ (p.16).

Citing works by three or more authors

• If there are three or more authors you should

include the first named author and then add ‘et

al.’ in italics followed by a full stop. This is an

abbreviation of ‘et alia’ which means ‘and others’

in Latin.

– In the United States revenue from computer games

now exceeds that of movies (Kline et al., 2003).

Citing works by the same author written

in the same year

• If you cite two or more works written in the same year by the same author, then you must differentiate between them in both the text and your List of references by listing them as a,b,c etc.

– Natural selection can cause rapid adaptive changes in insect populations (Ayala, 1965a) and various laboratory experiments have been conducted to assess this theory (Ayala, 1965b).

Citing secondary sources

– Sheff (1993) notes that Nintendo invested heavily in advertising (cited in Kline et al.,2003, p.118).

Writing a Bibliography or List of

references

• The List of references appears at the end of

your work and gives the full details of everything

that you have cited in the text in alphabetical

order by the author’s surname

Printed books

• Printed books should be referenced using the following format and punctuation.

– Author/editor’s surname and initials.,

– (Year of publication).

– Title of book: including subtitles. (in italics or underlined)

– Edition. (if applicable)

– Place of publication: (followed by a colon)

– Name of publisher.

• Reference to a book with one author

– Sheldrake, R., (1999). Dogs that know when

their owners are coming home: and other

unexplained powers of animals. London:

Arrow Books.

• Reference to a book with two authors

– Anderson, J. and Poole, M., (1998).

Assignment and thesis writing. 3rd ed.

Chichester: John Wiley & Sons.

Print journals and newspapers

• Print journals should be referenced using the following format and punctuation. – Author's surname, initials., (or Newspaper title where

there is no author,)

– (Year of publication).

– Title of article.

– Name of journal. (in italics or underlined),

– Date of publication (if applicable e.g. 18 June)

– Volume number (in bold) (if applicable)

– (Part/issue number), (if applicable)

– Page numbers.

Example

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. 332 (7552), 1224-1225.

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. Vol. 332, No. 7552, pp.1224-1225

E-journal article accessed via

website on the open Internet

• Britton, A., (2006). How much and how often

should we drink? British Medical Journal. 332

(7552), 1224-1225. [online] Available

from:http://bmj.bmjjournals.com/cgi/content/full/3

32/7552/1224 [Accessed 2 June 2006].

http://bmj.bmjjournals.com/cgi/content/full/332/7552/1224

Websites, web pages

e.g. University of London)

– (Year of publication).

– Title. (in italics or underlined)

– Edition. (if applicable, e.g. update 2 or version 4.1)

– [online]

– Place of publication: (if known)

– Name of publisher. (if known)

– Available from: <URL>

– [Accessed (enter date you viewed the website)].

References

– Holland, M., (2005). Citing references. [online] Poole:

Bournemouth University. Available from:

<http://www.bournemouth.ac.uk/academic_services/d

ocuments/Library/Citing_References.pdf> [Accessed

2 June 2006].

– University of Westminster, (2007). Harry Potter fans to

cast spell over Westminster. [online] London:

University of Westminster. Available from:

<http://www.wmin.ac.uk/page-14428> [Accessed 24

July 2007].

RR-F4/Human Resource Management/Support/Academic Writing Skills 1.pdf

Dr Marco Angelini,

UCL Transition Programme

With thanks to Dr Colleen McKenna for kind

permission in reproducing her material in this

presentation

Approaches to critical reading and writing

Outline for today

 Introduction

 Considering your writing practices

 Reading as part of writing

 Writing as part of thinking

 Planning

 Organising written work

 Looking at text

 Finding time to write

What type of writer are you?

The diver

The patchworker

The architect

The grand planner

Identifying your writing style

Previous writing experiences …

Reading as part of writing

Critical reading (and how it benefits your writing)

 Helps you determine what is and

what is not a robust piece of

research and writing in your field

 Helps you identify where existing

research has left a gap that your

work could fill

 Attention you pay to writing of others

helps you become more self-aware

of your own written work:

– Sufficient evidence to back up claims;

argumentation/reasoning; becoming

alert to your assumptions and how they

affect your claims

 Wallace and Wray, 2006

Critical reading?

How do you go about

reading an academic text

in your field?

Critical reading? Some possible approaches

How do you go about reading an

academic text?

 Use parts of the text: abstract,

contents, index, sub-headings,

graphs, tables, introduction and

conclusion

 Skim to get the gist of the argument

 Read with questions in mind

Critical reading? Some possible approaches

 Make notes/mind map/ use

highlighter

 Write a summary in your own words

 Write a brief critical response

 Keep note of bibliographic details

Critical reading/ critical writing

Handout – p. 12-13 Wallace and Wray

 As a critical reader, one evaluates

the attempts of others to

communicate with and convince

their target audience by means of

developing an argument;

 As a writer, one develops one's own

argument, making it as strong and

as clear as possible, so as to

communicate with and convince

one's target audience.

– Wallace and Wray, 2006

Free writing

 Way of using writing as a tool for

thinking

 Allows you to write without

constraints.

To do it –

Write continuously, in complete

sentences, anything that occurs to

you.

Free writing

Please write down EITHER

1. An idea / theme from your field

2. Use the topic:

‘what I enjoy about writing…’

Use a free writing technique to write

anything at all that occurs to you

about this topic.

This writing will not be shown to

anyone else.

Planning (Sharples)

 Plans should be flexible

 Through the writing process a deeper

understanding of topic is gained – thus,

planning is increasingly out of step as

writing develops:

– “The act of writing brings into being ideas

and intentions that the writer never had at

the start of the task or that could not be

expressed in any detail.”

Plans

 Free writing

 Notes/sketches

 Idea lists

– Ideas on post-it notes

 Mind map

 Skeleton paper with

sub-headings

 Outline

 Draft text

 Adapted from

Sharples, 1999

 What techniques do you use to

develop ideas in your writing

and/or signpost an argument?

Developing/sustaining argument

 ‘proving’ the thesis statement or

controlling argument

 Signposting argument (Giving the

reader cues; anticipating/referring

back)

 Using words which signal transition or

development – “However”,

“Nevertheless”, “Thus”, “Therefore”,

“Despite”

 Illustrating theoretical positions with

concrete examples

 Generalising from a particular set of

findings if possible

 Using subheadings

 Using/responding to counterarguments

and examples

 Anticipate next paragraph at end of

previous one

Signposting and making transitions

 Links between paragraphs – pick up point from the end of a paragraph at the start of next one.

 Conjunctions to express different kinds of meaning relations

– Temporal: when, while, after, before, then

– Causative: because, if, although, so that, therefore

– Adversative: however, alternatively, although, nevertheless, while

– Additive: and, or, similarly, incidentally

 Signposting through pronouns - this, these, those, that, they, it, them

 Adverbs: Firstly, secondly, etc

 Illustrative: For example, in illustration, that is to say,

Signalling conclusions

Citation

Examples of Citing

• The hip bone is confirmed to be connected to the thigh bone (Funny Bones, 1989).

• The cytoskeletal network acts like the strong bars within a scaffolding (Alberts et al., 1998)

• Slavic-Smith (2006) postulated three classifications for nucleoli in neurons

• It was shown in 2006 by Take That, that a successful comeback tour was possible [1].

Bibliographies

 Alberts, Bray, Johnson, Lewis,

Raff, Roberts & Walter. Essential

Cell Biology, 1st Edition, Garland,

1998

 Dickson, B (2002) Molecular

Mechanisms of Axon Guidance.

Science 298 1959-1964

 [1] www.bbc.co.uk/news

Writing tips

 Write a sentence for each paragraph you want

to write – you can then move them about easily

to form thread of argument

 Index tag the main points you want to use in

your references, so they can be found easily

while writing

 Write the introduction last

 Write the conclusion first

 Read what you have written aloud to see if it

sounds right

 Find best environment for you – when and

where do you work best

 Take a break before trying to do your final check

 Use a writing checklist

Making time for writing

 Write throughout the course

 Do free writing as frequently as

possible

 Snack and binge writing (Rowena

Murray)

 Writing groups

 Don’t wait until you feel ‘ready’ to

write…

Writing for learning

 Read regularly in the field. Find writers whose work you admire and study what and how they do things.

 View writing as part of a process rather than a product

 Find models of good writing in your discipline – analyse it; ask what works and what doesn’t; consider writing style; vocabulary; techniques – metaphor; explanation; signposting

 Reflect on your own writing practices

 Keep a notebook or learning journal

 Explore free writing

To sum up…

1. Asked ‘what type of writer are

you’? What are your writing

practices?

2. What are your approaches to

reading? How might you link

reading and writing?

3. Free writing as a means of

generating ideas

4. Thought about structure of the

essay at the paragraph level and

the overall level

5. Tried to relate these ideas back

to the outline.

Reference

Academic Writing Skills

Presentation - UCL https://www.ucl.ac.uk/transition/study-

skills.../Academic_Writing_Skills_11.pptx

RR-F4/Human Resource Management/Support/HRM - Lecture 1 Introduction.pdf

Lecture 1: Introduction of the Unit

Prepared by: Dr Gilbert Zvobgo

ICTM

 Aim of Session: To introduce the Unit’s content and the Unit

assessment

 1. Ground Rules

 2. Going over the Assignment Brief, including the assessment

criteria of the Unit

 3. Going over the Scheme of Work so that students see how

they could allocate their time wisely.

 4. Going over the Unit Specification so that students have an

overview of the syllabus (also available on ICON VLE).

 5. Library visit to help students check available books in their

Unit and to suggest those they want the College to purchase.

 6. Ask students to register with HN Global at:

Pearson Resources: Student Portal: HN Global (RQF)

https://www.highernationals.com/

 7. Help students understand the importance of academic

skills, academic writing, and referencing (citation and

references).

RR-F4/Human Resource Management/Support/HRM - Lecture 1 Material.pdf

RR-F4/Human Resource Management/Support/HRM Lecture 10.pdf

Page 1

Human Resource Management

Session 10

LO3: Employment Relations and Legislations

Ethical and Social

Responsibilities

Page 2

Session Objectives

 By the End of the session you will be able

to :

 Understand the meaning of ethics and

social responsibility

 Understand how ethics affect workplace

 Understand corporate social responsibility

and whistle blowing

Ethics in managing

 Ethics is the discipline dealing with what

is good and bad and with moral duty and

obligation.

 Business ethics is concerned with truth

and justice and a variety of aspects, such

as the expectations of society, fair

competition, advertising, public relations,

social res, consumer autonomy and

corporate behaviour in the home country

as well as abroad.

Page 3

Management - Chapter 3 5

 Law, values, and ethical behavior:

 Legal behavior is not necessarily

ethical behavior.

 Personal values help determine

individual ethical behavior.

Terminal values

Instrumental values

What is ethical behavior?

Ethical theories

 Utilitarian theory: plans and actions should be

evaluated by their consequences e.g greatest good for

greatest number of people

 Theory based on rights: e.g free speech

 Theory of justice: decision makers must be guided by

fairness and equity as well as impatiality

Page 4

Management - Chapter 3 7

Four views of ethical behavior.

Management - Chapter 3 8

 Cultural issues in ethical behavior:

 Cultural relativism

 Ethical behavior is always determined by

cultural context.

 Cultural universalism

 Behavior that is unacceptable in one’s

home environment should not be

acceptable anywhere else.

Ethical behavior and Culture

Page 5

Management - Chapter 3 9

How international businesses can

respect core or universal values:

Respect for human dignity

• Create culture that values employees, customers, and suppliers.

• Keep a safe workplace.

• Produce safe products and services.

Respect for basic rights

• Protect rights of employees, customers, and communities.

• Avoid anything that threatening safety, health, education, and living standards.

Be good citizens

• Support social institutions, including economic and educational systems.

• Work with local government and institutions to protect environment.

Management - Chapter 3 10

 An ethical dilemma occurs when choices, although having potential for personal and/or organizational benefit, may be considered unethical.

 Ethical dilemmas include:

 Discrimination

 Sexual harassment

 Conflicts of interest

 Customer confidence

 Organizational resources

How do ethical dilemmas complicate the workplace?

Page 6

Institutionalizing ethics

 By establishing an appropriate co policy or a code of

ethics. A code is a statement of policy, principles or

rules that guide behaviour

 By using a formally appointed ethics committe the

functions of which may be: 1) holding reg meetings to

discuss ethical issues 2) dealing with grey areas 3)

communicating the code to all members of the org 4)

checking for possible violation of code 5) enforcing the

code 6) rewarding compliance & punishing violation 7)

reviewing and updating the code 8) reporting activities

of the committee to the board of directors

 By teaching ethics in mgt dev programme

Management - Chapter 3 12

 The person

Family influences, religious values,

personal standards, and personal needs.

 The organization

Supervisory behavior, peer group norms and

behavior, and policy statements and

written rules.

 The environment

Government laws and regulations, societal

norms and values, and competitive climate

in an industry.

Factors influencing ethical behavior

Page 7

Factors that raise ethical

standards

 Public disclosure & publicity

 The increased concern of well informed public

 Govt rules and regulations

 Education

Management - Chapter 3 14

Corporate social responsibility?

 Corporate social responsibility:

 Looks at ethical issues on the organization level.

 Obligates organizations to act in ways that serve both its

own interests and the interests of society at large.

 The serious consideration of the impact of the company's

action on society.

Page 8

Management - Chapter 3 15

Multiple stakeholders in the environment

of an organization.

Management - Chapter 3 16

Beliefs that guide socially responsible business practices

 People do their best with a balance of work and family life.

 Organizations perform best in healthy communities.

 Organizations gain by respecting the natural environment.

 Organizations must be managed and led for long- term success.

 Organizations must protect their reputations.

Page 9

Arguments for social

involvement of business

 Both bus & society get benefit

 Social involvement discourage Government intervention

 Create a favourable public image

 Bus receive charter from society & consequently respond to the needs of society

 Problems can become profit (drink cans)

 It is better to prevent social problem through business involvement than to cure them

 Business has the resources

 Social involvement may be in the interest of stockholders

Arguments against social

involvement of business

 Society must pay for social involvement of bus

 Bus has enough power & additional social involvement

would further increase its power

 Social involvement could reduce economic eff

 Business people lack the social skill to deal

 There is a lack of accountability of bus to society

Page 10

Management - Chapter 3 19

Criteria for evaluating corporate

social performance

 Is the organization’s …

Economic responsibility met?

Legal responsibility met?

Ethical responsibility met?

Discretionary responsibility met?

Management - Chapter 3 20

Strategies for pursuing social responsibility

Obstructionist — meets economic responsibilities.

Defensive — meets economic and legal responsibilities.

Accommodative — meets economic, legal, and ethical responsibilities.

Proactive — meets economic, legal, ethical, and discretionary responsibilities.

Page 11

Management - Chapter 3 21

The Roles of government to influences organizations

 Common areas of government

regulation of business affairs:

Occupational safety and health

Fair labor practices

Consumer protection

Environmental protection

Management - Chapter 3 22

How organizations influence

governments:

 Personal contacts and networks

 Public relations campaigns

 Lobbying

 Political action committees

 Sometimes by illegal acts, such as

bribery or illegal financial

contributions to political campaigns

Page 12

Management - Chapter 3 23

How do organizations and governments work together in society

 Corporate governance:

 The oversight of the top management of an

organization by a board of directors.

 Corporate governance involves:

 Hiring, firing, and compensating the CEO.

 Assessing strategy.

 Verifying financial records.

18 rules of international business

ethics. Part 1: International Bus

Ethics

 If you strive to understand the values of

different cultures, you will find common

points.

 If you analyse the facts, you will realize

the honesty & reliability benefit you.

 If you analyse case studies from different

perspectives, you will discover the

benefits of fair plan.

Page 13

18 rules of international business

ethics. Part 2: labour conditions

 Respecting your colleagues is the smartest

investment you can make

 To increase productivity, provide safe and healthy

working conditions

 To inspire trust, make your performance

transparent

 Your loyal dissent can lead your institution in the

right direction

 Downsizing you labour force is only beneficial

when you respect each stakeholder.

18 rules of international business

ethics. Part 3: area of justice

 To establish your brand name, act as a fair competitor

 Reduce the gap btn the rich and poor by developing a new

social security system

 If you act against discrimination, you will increase your

productivity & profitability

 If you protect intellectual property, all stakeholders will

receive their due share

 On-going change in IT requires new form of loyalty

 PR strategy will only secure your reputation if it witnesses your

drive for quality & excellence

 Your economic achievement will only stand on firm ground if

you dismiss corruption

 Long term success urgently calls you to constantly care for the

environment

Page 14

18 rules of international business

ethics. Part 4: Toward Virtue

Ethics

 To become a refined player, sharpen your

discernment and cultivate good manners

 Care for your business by caring society

Whistle blowing

 Making known to outside agencies

unethical co practices.

 Whistle blower is an employee who

refuges to engage in and/or reports

illegal or wrongful activities of his

employer or fellow employees.

Page 15

Management - Chapter 3 29

Whistle Blowing: Barriers and

organizational Methods

 Barriers to whistleblowing include:

 Strict chain of command

 Strong work group identities

 Ambiguous priorities

 Organizational methods for overcoming whistleblowing barriers:

 Ethics staff units who serve as ethics advocates

 Moral quality circles

RR-F4/Human Resource Management/Support/HRM Lecture 11.pdf

Human Resource Management

Session 11

LO3: Employment Relations and Legislations

Trade Unions and Workplace

Representations

Session Objectives

By the end of the session students should be able to :

 Understand the roles of trade unions.

 Understand the process of collective bargaining

 Understand grievance and disciplinary procedures.

What is a Trade union

 A trade union is an organized group of workers. Its main goal is to protect and

advance the interests of its members.

 Trade unions aim to represent the interest of people at work and negotiate

with employers or management for better terms and conditions for their

members.

Definition of Trade Union

 “Trade Union” means any combinations whether temporary or permeant,

formed primarily for the purpose of regulating the relations between workers

and employers or management or between workers and workers or between

employers and employers.

What Trade Unions Do

 Negotiation: where union representatives discuss with management issues

which affect people work in an organizations. The unions find out the

members views and relay these views to management. There may be a

difference of opinion between management and union members. Negotiation

is about finding the solutions to these differences. This process is also known

as collective bargaining.

 Representations: trade unions also represent individual members when they

have problem at work. If an employee feels he/she is being unfairly treated

he/she can ask the union to help sort out the difficulty with the employer.

 Member Service: trade unions have a range of services offered to their

members. They include

 Education and training.

 Welfare benefits- provide financial helps to their members when they are sick

or unemployed.

Collective Agreement

LABOUR LAW DEFINED

 Broad

 All areas of law concerned with the employment relationship

 Narrow

 Collective Bargaining

 Trade unions

 The system of rules that governs collective relations amongst management, trade

unions, their members, and the institutions involved in such relations

COLLECTIVE BARGAINING

 Collective bargaining

 The process whereby an employer and a trade union seek to negotiate a collective

agreement

 Done through legislation

 Employees choose an agent (union) through which negotiations take place

LABOUR RELATIONS

 Labour relations board – a body that administers labour relations legislation

 Trade union - an organization chosen by the employees to regulate the relations between the employer and the collective of employees

 Collective bargaining – a mechanism by which parties enter a collective agreement or contract

 Collective agreement – the employment agreement reached between the union and employer setting out the bargaining unit employees’ terms and conditions of employment

BARGAINING UNIT

 Bargaining Agent - one per bargaining unit

 Given exclusive authority to negotiate with employer

 Any contract negotiated is binding on all employees within the unit

 Voluntary recognition

 Employer agrees to recognize a trade union as the bargaining agent for its employees

 Often challenged by employees who do not want to be represented by the recognized bargaining agent

 Membership drive

 A union attempts to persuade a majority of employees in an appropriate bargaining unit to become union members

BARGAINING UNIT

 Only “employees” entitled to bargain collectively

 Excluded groups

 Professionals employed in professional capacity

 Management employees

 Employees employed in confidential capacity

 Essential services – most states have legislation dealing with such services

THE NEGOTIATION PROCESS

 Union negotiates on behalf of its members with the goal of reaching a

collective agreement

 Collective Agreements

 Each party can give notice to commence bargaining

 Parties must make reasonable efforts to reach an agreement

NEGOTIATION PROCESS

 Duty to Bargain in Good Faith

 Both parties must make reasonable efforts to negotiate an agreement

 includes the duty to

 Meet with the other party

 Engage in full and informed discussion

 Supply information

 Complete negotiations

COLLECTIVE AGREEMENTS

 Collective Agreements

 Must be in writing

 Set forth the terms and conditions of employment

 Be ratified by both parties

DISPUTE SETTLEMENT

 Types of disputes

 Recognition disputes – between union and employers during organizational process

 Recognized as bargaining unit/agent

 Interest dispute – dispute about terms of the collective agreement

 Rights dispute – disagreement over meaning or interpretation of a provision in collective agreement

 Jurisdictional dispute – between 2 unions as to who should represent a group or do a particular job

DISPUTE SETTLEMENT

 Collective agreement provides a process for settling disputes

 Grievance

 Mediation

 Arbitration

 Grievance process – a procedure for resolving disputes within a collective

agreement

Grievance procedure

 By law employers must set out a grievance procedure and share it in writing with all employees. It includes: * who the employee should contact about a grievance *how to contact this person.

 It should also:

 say that if the problem can’t be resolved informally, there will be a meeting with the employee, called a grievance hearing

 set out time limits for each stage of the process

 identify who to contact if the normal contact person is involved in the grievance

 explain how to appeal a grievance decision

 state that employees can be accompanied in any meetings by a colleague or union representative

 outline what happens if a grievance is raised during disciplinary action

MEDIATION

 Intervention by a third party to help facilitate an agreement

 Conciliation or mediation may be mandated by legislation

ARBITRATION

 Arbitration - a method for settling disputes and grievances arising out of the

agreement

 Mandatory in rights disputes

 Decisions of arbitrator's are binding on parties

 The final step in the grievance process – usually third party binding arbitration

CONFLICT

 Parties fail to reach a collective agreement or a collective agreement has

expired

 One or both parties may resort to various actions

 Types of Actions

 Strike

 Lockout

 Picketing

 Secondary Picketing

STRIKES

 Strike – a cessation of work or a withdrawal of services by a group of employees

 Purpose is to compel employer to a certain conditions of employment

 A concerted activity with a common purpose which limits or restricts some industrial activity

 Only allowed if not otherwise prohibited by law

 Called by the union

 Strike not allowed when a collective agreement is in place

 Illegal strike otherwise

 “Wildcat” Strike – spontaneous walkout by employees

LOCKOUT

 Refusal of employee enter to the workplace by an employer when collective

bargaining with the employees fails to produce a collective agreement

 Action by employer to prevent employees from working

 Purpose is to compel employees to accept certain conditions of employment

 Only allowed if not otherwise prohibited at law

UNION-MEMBER RELATIONSHIP

 An unincorporated entity

 No existence separate from its members

 Relationship with members is contractual

 Rights of members governed by contract

 Collective-Bargaining legislation

 Limitations on rights of trade unions to refuse membership or to expel members

UNION-MEMBER RELATIONSHIP

 Unjustified Grounds

 Race, creed, colour, sex, nationality, place of origin, other discriminatory factors

 Members must adhere to rules and obligations set out in organization’s

constitution

 Failure to do so may result in expulsion

DISCIPLINE AND DISCHARGE

 Arbitrator in assessing whether the penalty is appropriate will consider

 The record and service of the employee

 Provocation

 Any special economic hardship imposed on the employee by the penalty

 The seriousness of the offence

 Premeditation

 Uniform enforcement of policies and rules

 Circumstances negating intent

 Condonation

RR-F4/Human Resource Management/Support/HRM Lecture 2.pdf

Page 1

Human Resource Management

Session 2

LO1: The nature and scope of HRM

Human Resource Management Defined

Human resource management is defined as a

strategic and coherent approach to the

management of an oragnisation’s most valued

assets – the people working there who

individually and collectively contribute to the

atonement of its objective. (Armstrong 2006)

Page 2

Best fit Approach

The best fit approach is in line with contingency theory.

The life-cycle model The life cycle model is based on the

theory that the development of a firm takes place in four stages: start-up, growth, maturity and decline.

Best fit and competitive strategies Strategic configuration

Organizations will be more effective if they adopt a policy of strategic configuration (Delery and Doty, 1996) by matching their strategy to one of the ideal types defined by theories such as those produced by Miles and Snow (1978) whose typology listed prospectors, defenders, analyzers and reactors.

Comment • Best fit models tend to be static and

don’t take account of the processes of change.

• They neglect the fact that institutional forces shape HRM.

• It cannot be assumed that employers are free agents able to make independent decisions. It is often said that best fit is better than best practice but this statement can only be accepted with reservations

Best fit strategies

Three strategies aimed at achieving competitive advantage were identified by Porter (1985):

1.Innovation - being the unique producer. 2.Quality - delivering high quality goods

and services to customers. 3.Cost leadership - the planned result of

policies aimed at 'managing away’ expense. It was argued by Schuler and Jackson (1987) that to achieve the maximum effect it is necessary to match the role characteristics of people in an organization with the preferred strategy.

Page 3

The ‘Best Fit’ approach vs ‘Best Practice

• The Best Fit approach emphasizes that HR strategies should

be congruent with the context and circumstances of the

organization.

• Best Practice approach assumed is that there is a set of best

HRM practices that are universal in the sense that they are

best in any situation. This is questionable

• Best fit involves vertical integration or alignment between

the organization’s business and HR strategies.

• There are three models: life-cycle, competitive strategy,

and strategic configuration.

Often said that ‘best fit is better than best

practice’ but best fit

models can be unrealistic.

Hard and soft HRM

• Hard HRM

• The focus is on the quantitative, calculative

and business-strategic aspects of managing

human resources in as 'rational' a way as for

any other economic factor.

• Soft HRM

• Employees treated as valued assets, a source

of competitive advantage through their

commitment, adaptability and high quality

• But the distinction between hard and soft

HRM is not precise.

Page 4

Workforce Planning

• Human Resource Information Systems

– Systems that make it possible to track and

monitor economic forecasts, competitors, and

legislation that influence long-range personnel

planning; to produce models for salary

forecasting, job analysis and evaluation,

recruiting, employee training, and annual

appraisal of employee performance; to provide

benefits to current and retired employees; and

more.

Workforce Planning

• Workforce Planning

– The process of determining future human

resource needs relative to an organization’s

strategic plan and taking actions necessary to

meet those needs in a timely manner.

Page 5

Human Resource Planning Process (Based on Lewis, Pamela S et all 2001)

Compensation

Forecasting

Staffing Recruitment Selection

Training

Performance Appraisal

Job Analysis

Impact of legal and regulatory frameworks on HRM

• Legal Framework Guiding Recruitment

and Selection:

Sex Discrimination Act (1975)

Race Relation Act (1976)

Equal Pay Act (1970)

Disability Discrimination Act (1995)

Employment Act 2002

Page 6

Impact of legal and regulatory frameworks on HRM

• Other Legislation

– Such as the Americans with Disabilities Act

and the Age Discrimination Act of 1967,

prohibits employment decisions based on biases

against qualified individuals with disabilities

and the elderly.

– In general, the purpose of EEO legislation is to

ensure that unemployment decisions are based

on job-related criteria only.

Impact of legal and regulatory frameworks on HRM

• For employers in the UK the adjustment required by the

introduction of extensive employment law has often been

problematic as the UK's labour market was historically one of

the least regulated in the world. There thus remains a strong

tendency for employers and their representatives to resist the

introduction of new regulation and to campaign for a reduction in

the existing 'regulatory burden' on the grounds that it both deters

organizations from taking new staff on, while also making the

UK economy as a whole less globally competitive than it would

otherwise be.

• Despite these misgivings, it is clear that employment law is here

to stay and that it makes good business sense to comply with its

requirements. Most employers have to face employment tribunal

claims from time to time and most HR professionals have to deal

with their consequences on a fairly regular basis.

Page 7

THE PURPOSE OF EMPLOYMENT LAW

• To deter employers from treating their employees unfairly or

from exploiting them unjustly

• To help make work more attractive to people

• To promote flexibility in the labour market

THE PURPOSE OF EMPLOYMENT LAW • Employment law exists to protect employees from unjust exploitation or

unfair treatment by their employers. Necessary because for the vast

majority of workers, the employment relationship is very unequal in terms of

the power that each side is able to exercise over the other. Employers are

vastly more powerful making it relatively easy for them to abuse that power

by treating their employees poorly, by dismissing them or discriminating

against them for no good reason, underpaying and overworking them, or

causing them to risk their heath, safety and welfare while at work.

• Two major further reasons behind employment regulation in today's

economic context. First, governments have sought to use employment law

to promote good practice in the employment relationship. Second,

governments are keen to promote flexibility and competition in the labour

market. They want to ensure that employees are free to leave their

employment and join another organization easily and that they are not

prevented from working because of domestic commitments. They also want

to ensure that when people persistently perform their jobs poorly or when

their jobs are genuinely redundant employers are able to terminate their

contracts swiftly and cheaply.

Page 8

THE PURPOSE OF EMPLOYMENT LAW

• Examples include:

1. Direct discrimination: failing to promote a woman

because she is a woman.

2. Indirect discrimination: requiring a devout

employee to work on a holy day.

3. Victimization: refusing to give a reference to a

former employee who brought a race

discrimination claim against the organization.

4. Harassment: teasing someone about their sexual

orientation.

THE PURPOSE OF EMPLOYMENT LAW

• The defences available to employers are limited. Direct discrimination

and victimization on most grounds are almost always unlawful,

although in the cases of discrimination on grounds of disability and age

the former can be defended where there is a good, genuine business

reason. Direct discrimination is also lawful when the nature of a job

requires that it is reserved for members of one sex (eg., acting and

modelling jobs) or a particular race (eg., waiters in ethnic restaurants)

or religion (eg., clerical roles). Indirect discrimination occurs when an

organization has a rule or policy in place that has the effect of causing

a disadvantage to one group or another, even though this may be

entirely unintentional. This can be defended when the rule can be

shown to be 'a proportionate means of achieving a legitimate aim', in

other words, an objective business need.

Page 9

DISCRIMINATION LAW

There are four headings under which an employer's

actions can be challenged in court:

1.direct discrimination

2.indirect discrimination

3.victimization

4.harassment

DISMISSAL LAW

Former employees who have completed more than two years

service (one year if employed prior to April 2012) are entitled

to seek compensation or re-instatement when they have been

unfairly dismissed.

Page 10

DISMISSAL LAW

• To be lawful it is essential that any dismissal

is managed in accordance with a fair

procedure. In a case of poor work

performance this means that an employee

must be invited to a formal meeting, given a

formal warning in writing, allowed an

opportunity to appeal, given a reasonable

opportunity to improve and, only then,

dismissed following a further formal meeting

with aright to appeal.

DISMISSAL LAW

• Only when an employee is guilty of gross misconduct

such as stealing, fighting or serious insubordination,

is an employer entitled to dismiss summarily without

notice. Here too though, a fair procedure must always

be followed, employees being given every

opportunity to defend themselves and to appeal the

dismissal. A further requirement is that employees

facing hearings at which they may be dismissed must

always be allowed to be accompanied by a work

colleague and represented by a trade union official.

Page 11

HEALTH AND SAFETY LAW

There are two distinct parts to health and safety law:

1.the criminal law, which is enforced by health and safety

inspectors

2.personal injury law, under which workers who suffer an injury at

work or fall ill as a result of their work can sue their employer for

damages

HEALTH AND SAFETY LAW

• Health and safety inspectors carry out

routine inspections of employers'

premises without warning, following

which they can issue improvement

notices requiring that changes are made

to operations or prohibition notices that

prevent the employer from using a piece

of equipment or operating a system until

recommended changes have been

made.

Page 12

HEALTH AND SAFETY LAW

In either case a failure to make the required changes

can result in a criminal prosecution. Such

prosecutions are also brought when an employer's

negligence or recklessness leads either to a death or

a serious injury.

In the most serious cases, charges of corporate

manslaughter can be brought against an

organisation.

Most personal injury claims also involve demonstrating

that an employer or a fellow employee has acted

negligently.

HOURS AND WAGES

Two main legal provisions:

• The Working Time Regulations 1998

• National Minimum Wage regulations

Page 13

HOURS AND WAGES

Working Time Regulations: The key right here is not to

be required to work in excess of 48 hours a week.

However, in practice, many employees continue to do

so. This is partly because actually the law only limits

working time to 48 hours averaged over 17 weeks, so

employers can lawfully require their staff to work

many more hours in particularly busy weeks,

provided on average over any 17-week period the 48

hour rule is observed. In the UK there is also an opt-

out system in place, under which employees can

remove themselves from the right not to work more

than 48 hours a week. This is common because

employers can lawfully require new starters to sign

opt-out agreements as a condition of being offered a

job.

National Minimum Wage Regulations:

These require that all workers are paid

a minimum amount for every hour that

they work, rates being set by the

government each year after consulting

with the Low Pay Commission.

ENFORCEMENT

Aggrieved employees and former employees can bring cases

relating to the alleged breach of an employment statute before

their local Employment Tribunal.

Page 14

ENFORCEMENT

In most tribunal cases the burden of proof lies with the

claimant (the person bringing the case), but on some

questions of law it can reverse so that the respondent

(the employer) must satisfy the tribunal that it did not

act unlawfully as is alleged.

Employment tribunals then decide cases 'on the

balance of probabilities' having weighed the evidence

presented to them by each party or its

representatives.

ENFORCEMENT

In most tribunal cases the burden of proof lies with the

claimant (the person bringing the case), but on some

questions of law it can reverse so that the respondent

(the employer) must satisfy the tribunal that it did not

act unlawfully as is alleged.

Employment tribunals then decide cases 'on the

balance of probabilities' having weighed the evidence

presented to them by each party or its

representatives

Page 15

What are Labour Markets?

• Mechanism through which human labour is bought

and sold as a commodity

• Means by which labour demand (the number and type

of available jobs) is matched with labour supply (the

number and type of available workers)

• Nature of interaction between organisation and labour

markets reflects choice of ‘make’ or ‘buy’ strategies

for employee resourcing

The external labour market

• External supply of labour; the stock of available

labour

• Segmented labour markets – Geography, skills,

educational level, etc.

• Labour market ‘power’ through legitimate and

illegitimate means

• Shaped by a range of processes which can be both

planned and directed or largely uncontrolled and

unpredictable

• Reflexive relationship between the supply and demand

for labour

Page 16

Labour Market Supply and Demand

Labour market supply Labour market demand  Changing societal attitudes to

work and education

 Economic conditions (regional, national and international)

 Changing demography

 Government policy – Both national and international (e.g. European Union)

o Employment regulation

o Level and target of investment in education and training

o Industrial policy

o Wider social policy

 Changes to the external business environment

 Changes in the internal business environment

 Changing communications and production technologies

 Changes in the political context

 Economic restructuring

 Changing skills requirement

 Regional, national and international economic conditions – Inflation, level of unemployment and interest rates

The internal labour market

• An organisation’s internal supply or stock of labour

• Mechanism for attribution of work roles

• Device for managerial control over the workforce

through stratification, division and the detailed

allocation of responsibility

• ‘Form’ determined by HR practices, contextual

factors and organisational characteristics

• Potential source of ‘positive’ employment experience

• Erosion of ‘strong’ internal labour markets?

Page 17

Employee turnover, stability and retention

• Employee turnover is the outflow of people from an organisation. It is

usually expressed as the proportion of people who leave the business

over a specific timescale, typically during a 12-month period. It is for

each organisation to decide what its optimum level of labour turnover

is and this will depend on a range of factors, for example sector, size

and location.

• If labour turnover is too high, the organisation can suffer a range of

negative impacts including the financial cost of recruiting replacement

staff and the loss of corporate knowledge and skills.

• Total labour turnover" covers all types of employee departures,

including resignations and dismissals. "Voluntary labour turnover"

refers to those employees who resign from the organisation.

Page 18

Employee turnover, stability and retention

• The stability rate calculates the proportion

of the workforce employed for a specified

period and measures how effectively the

organisation is retaining experienced staff,

typically those with at least one year's

service.

• The retention rate calculates the proportion

of staff recruited in one year that remain in

post after a specific number of years.

References

• Armstrong, M (2006), A Handbook of Human Resource Management Practice, 10th Edition,Kogan Page Ltd.

• Hendry, C. (1995), Human Resource Management a strategic approach to employment, Butterworth – Heinmann.

• Institute of Personnel Management (1990), Continuous Development: People and Work 3rd Edition, Wimbedon IPD.

• Lewis, Pamela et all (2001) Management Challenging in the 21st Century 3rd edition, South Western Publishing of Thomson Learning

• Torrington, D. (1989), Human Resource Management and the personnel funtion, in J Storey (ed.) New perspective in Human Resource Management. London: Routledge

RR-F4/Human Resource Management/Support/HRM Lecture 3.pdf

Page 1

Human Resource Management

Session 3

LO1: The nature and scope of HRM

What is Recruitment ?

•A positive action:

– Entering labour market

– Communicating information

– Generating interest

•Concerned with obtaining a field of suitable

applicants

•A public Relations exercise

Page 2

Aims of The Recruitment

 Obtain both the right number & type of people

 Contribute to the organisation’s objectives

 Generate a field of suitably qualified applicants.

 Find the right person to do the right job in the right place at the right time & that it is the

con

Recruitment: Internal v External Recruitment

• A business can recruit in two different ways:

• Internal recruitment is when the business looks

to fill the vacancy from within its existing

workforce

• External recruitment is when the business looks

to fill the vacancy from any suitable applicant

outside the business

• Of course, the option to use BOTH internal and

external recruitment can be used. This is often the

case for senior management appointments.

Page 3

Internal Recruitment: Advantage

• Cheaper and quicker to recruit

• People already familiar with the business

and how it operates

• Provides opportunities for promotion with

in the business – can be motivating

• Business already knows the strengths and

weaknesses of candidates

Internal Recruitment: disadvantage

• Limits the number of potential applicants

• No new ideas can be introduced from

outside

• May cause resentment amongst candidates

not appointed

• Creates another vacancy which needs to be

filled

Page 4

External recruitment: advantages and disadvantages

• Advantages:

• Outside people bring in new ideas

• Larger pool of workers from which to find the best

candidate

• People have a wider range of experience

• Disadvantages:

• Longer process

• More expensive process due to advertising and

interviews required

• Selection process may not be effective enough to

reveal the best candidate

Recruitment : The Staged Approach

Human Resource Planning / Manpower Planning

Job Analysis

ID Vacancies

Evaluate Labour Sources

Distribution of Job Information

Process Applications

Inform Applicant of Outcome

Page 5

Job Analysis

Process of Collecting, Analysing & Setting Out Information Regarding Jobs

Provides Basis For:

Job Descriptio n

Person Specification

Role Definition

DATA

Job Evaluation Performan

ce Manageme ntOther HRM

purposes

Job Analysis

• Job analysis is the process of collecting & analysing information about the tasks, responsibilities & job contexts. The objective of this exercise is to provide the information on which the job description and person specification may be based. It involves two elements:

• Defining the information required &

• Collecting the information from appropriate sources.

Page 6

Information Required: checklist

• Title of job: in unambiguous terms.

• Organisational context: location of job, deptt, chain of command, reporting to

• Summary of job: purpose & objectives

• Content of job: duties, res & importance.

• Physical working environment: office, hours, salary, associated benefit/incentive

• Other information: promotion, edn, training

• Performance standard: monitor & review period

• Human requirements: persons specification

Information Collection

• Observing the job: check that they understand all the actions.

• Interviewing the job holder

• Work study techniques-measuring & timing actions.

• Diary method-job holders complete diary recording all actions

• Work performance.

• Critical incident technique- observing the key incidents in the jobs.

Page 7

Job Descriptions

• It describes the job in terms of its duties, res, &

purpose. It sets the parameters of the job by

covering the total requirements-the who, what,

where, when and why. The key elements are:

• *the job title*reporting to*primary

objectives*key tasks*how the res are to be carried

out*extent of res*key contacts and basic

conditions of work.

• Job description should be unambiguous and

succinct/precise.

JOB DESCRIPTION

Organisation’s Name:

Job Title:

Department/Division:

Context:

Job Summary:

Reports To:

Responsible For:

Contacts :

Job Content / Major Duties:

Working Conditions:

Performance Standards:

Page 8

Why Is A Job Description Important?

It sets out :

• The purpose of the job

• Where the job fits in the Organisation’s

structure

• The context within which the job-holder

functions

• The principal accountabilities of the job-holder

or the main tasks that the person[s] have to

carry out.

Why Undertake Producing a Job Description?

• Communication

• Tactical Approach to Selection

Process

• Expectations of would be candidates

• Advertising

• Reference Point

Page 9

Usefulness of job description to individual

• Provides information to the potential employee/

job applicant so that s/he can determine whether or

not the job is suitable.

• Gives the potential employee or the job holder the

opportunity to set individuals goals, objectives and

targets.

• Job description is an authoritative document that

guides the individual through day to day task

achievement.

Usefulness of job description to organisation

• Enables the personnel specifications to be written.

• Gives the org an in-depth overview of the job.

• It is the basis for a training needs analysis to be

undertaken and appropriate training to be planned

for, implemented & evaluated.

• Provides an additional source of information

during performance appraisals or professional dev

interviews.

Page 10

Person Specification

• The person specification is used in the recruitment process to provide recruiters with an ideal profile of the candidate the co wishes to attract. It is a psychological blueprint of the candidate who will possess the requisite knowledge, qualifications skills, & experience to enable him/her to do the job efficiently & effectively.

• One of the models followed in designing person specification is seven point plan

Seven point plan: developed by Prof.Alec Rodge(1950),essential & desirable criteria

• Physical make up: appearance, dress etc.

• Attainments: edn, training & qualification.

• General intelligence: mental set

• Special attitudes.

• Interests.

• Disposition: personality/sense of humor/introvert-

extrovert.

• Circumstances: frequent travel/ unsociable

working hours.

Page 11

ORGANISATION’S NAME:

DEPARTMENT / DIVISION :

PERSON SPECIFICATION FORM:

POST :

DEPT / UNIT :

Essential Requirements

Desirable

Education / Qualifications

Skills / Abilities

Knowledge

Experience

Disposition

Other Requirements

Distribution of Job Information Aims

TO:

Attract attention & hold interest

Present an image

Facilitate application

Filter out unsuitables

Page 12

How To Reach The Labour Market

• Advertising

• Word of mouth

• Agencies

• Head hunting

• Consultants

• Careers fairs / exhibitions

• Internet

Agencies for Recruitment

 Government

 Institutional

 Private

Page 13

Where to Advertise

There are specific points that need to be taken into consideration when advertising:

1. Is the target Internal or External?

2. Which medium will be most appropriate?

3. The Cost in relation to:

 Paid circulation

 Readership

 Type of vacancy

Job Advertisement [1]

Should:

• Be both concise & comprehensive

• Attract a good field / range of applicants

• Be relevant to the job / vacancy

Page 14

Job Advertisement [2]

 ATTENTION IMPORTANT TO ATTRACT ATTENTION

OF TARGET GROUP

 INTEREST HOLD INTEREST SO THAT ALL THE

INFORMATION IS READ

 DESIRE AROUSE A DESIRE FOR THE

OPPORTUNITY OFFERED

 ACTION

STIMULATE ACTION - TARGET GROUP

APPLY FOR THE POSITION

The Advertisement

The following is a checklist of what should be

included:

• Name and brief details of employing

Organisation

• Job and duties

• Key points of the personnel specification

• Salary

• What to do

Page 15

Composition of the The Job Advert

• Job title/ location / salary

• Brief description of the:

– Job

– Nature of the organisation

– “Ideal person”

• Organisation benefits and facilities

• Unique features

• Application procedure and closing date

• Reference number

• Equal opportunities statement

Evaluating Success of Recruitment Process

Cost of & response to each job search

Future performance of those recruited

Cost of a bad decision

Page 16

Competency Frameworks

• Competency frameworks, when done

well, can increase clarity around

performance expectations and establish a

clear link between individual and

organisational performance. When

developing and implementing a

competency framework, care needs to be

taken to balance detail with flexibility

and avoid an overly prescriptive and non-

inclusive approach.

Summary

It is important to ensure that the Job

Description & the Person Specification

are:

• Accurate & concise

• Up-to-date

• Relevant to the vacancy

• Fall within the legislative framework

• Appropriately advertised

RR-F4/Human Resource Management/Support/HRM Lecture 5.pdf

Page 1

Human Resource Management

Session 5

LO1: The nature and scope of HRM

What is Induction ?

•The process will cover your rights as the employer, the employee

rights and the terms and conditions of employment.

•As a priority the induction program must cover

any legal and compliance requirements for working in your

business and pay attention to any workplace health and safety

requirements.

•Induction or orientation is an event where you introduce the job

and your organisation to the new employee and vice versa.

•An induction program is part of your knowledge

management process and enable the new starter to become a

useful, integrated member of the team, rather than being ‘thrown

in at the deep end’ without understanding how to do their job or

how their role fits in with the rest of the business.

•

http://en.wikipedia.org/wiki/Legal

http://en.wikipedia.org/wiki/Compliance_(regulation)

http://en.wikipedia.org/wiki/Knowledge_management

Page 2

What is on boarding?

• It is the process through which new hires learn the

attitudes, knowledge, skills and behaviors required to

function effectively within your business. The bottom line

is that, to the degree you can make new hires feel

welcomed into the business and prepared for their new

jobs, the faster they will be able to successfully contribute

to business outcomes.

• On-boarding will assist in building relationships, ensuring

expectations on both sides are met, developing the

employee’s knowledge of the culture and strengthening

their commitment through role clarity and self-efficacy.

On-Boarding Framework

• 22% of new employee turnover occurs in the first 45 days of

employment (The Wynhurst Group)

• 4% never return after the first day on the job (Society for

Human Resource Management, SHRM)

• In first 6 months: new employees make their decision whether

or not to stay (Monster.com survey)

• The cost of losing an employee in the first year: 1 ½ to 3

times their annual salary (The Wynhurst Group)

Page 3

On-Boarding Framework

• Employees who experience an On-Boarding

program are 58% more likely to be with the

organization after three years.

• Why?

– Facilitates: Strengthening of workplace culture,

Greater job satisfaction,

Better job performance,

Workplace stress reduction.

On-Boarding Assumptions

 New Employee  Characteristics with

correlation to

On-Boarding success,  Proactive Personality

 Openness

 Conscientiousness

 Extraversion

 Agreeableness

 Neuroticism

 Curiosity

 Greater Experience Levels

 Credit Union  Accurate job description

 Environment is work ready

 Provides support and resources  Manager

 Buddy?

 Mentor?

 Human Resources

 Transparency  Values

 Roles

 Norms

Page 4

On-Boarding Assumptions

 On-Boarding is relational:  Relationship building key part of process

 Informally through talking at break time

 Formally through taking part in pre-arranged events

 Benefits

 Greater Job Satisfaction

 Better Job Performance

 Decreased Stress

On-Boarding: How does it work?

• Phases:

• Recruitment

• First Day

• First Weeks

• First Months

• Assimilation

Page 5

DURING RECRUITMENT

•Begin telling organization’s story

•Communication

•Some relationship building

•Transparency

•Integrity

FIRST DAY OF EMPLOYMENT

•Work area prepared,

•Desk and equipment in place,

•Introduced and greeted in department,

•Beginning of role clarity,

•Buddy assigned.

Page 6

First Weeks:

Initial Adjustment Period

• Employee presented with history, mission,

vision, handbook and norms of

organization.

• Position training in full swing,

• Role Clarity

• Self-efficacy

• ‘Buddy’ in place

First Month

• Move toward full assimilation,

• Structured orientation/compliance

programs;

• Relationship & team building encouraged

Page 7

Final Phase

• Social acceptance,

• Knowledge of organizational structure,

• Received performance feedback,

• Mentor – when appropriate

• Employee development;

• early assessments

Issues affecting successful induction and socialization of employees

• Reward System: The purpose of the reward is based on the assumption

that rewards will foster teamwork, loyalty & improve performance

• Employee Communication: Line manager's communication has been

recognized as important factor of in influencing employee behaviour

and perception.

• Driving initiatives: Managers can drive initiatives by effectively

collaborating with frontline employees and customers.

• Influence rather than control: Managers need to spend more time to

ensure that employees understand what is expected of them and what

they are trying to achieve as a team and their role in this journey.

• Plan leadership and management: Managers need to plan leadership

and management together

• Addressing Poor Performance

• Personal Development Plan

• Coaching & Mentoring

• Managers training for performance management

RR-F4/Human Resource Management/Support/HRM Lecture 6.pdf

Page 1

Human Resource Management

Session 6

LO2: Key elements of HRM

Session Objectives

By the end of the session you will be able to:

 Understand about learning, development and training.

 Identify training needs and types of training

 Evaluate different trainings

Page 2

Learning

•Learning is the process by which individuals acquire

the knowledge, skills behaviours/attitudes that they use

to deal with all aspects of life.

•“a persisting change in human performance or performance potential . . . (brought) about as a result of the

learner’s interaction with the environment” (Driscoll, 1994,

pp. 8‐9). 2. “the relatively permanent change in a person’s

knowledge or behavior due to experience” (Mayer, 1982, p.

1040). 3. “an enduring change in behavior, or in the

capacity to behave in a given fashion, which results from

practice or other forms of experience” (Shuell, 1986, p.

412).

Development

 The Manpower Services Commission defined development as “the growth or realisation of a person’s ability, through conscious or unconscious learning” (1981).

 Thus, it more concerned with long-term individual, or organisational, development than short-term performance, although it encompasses this. It emphasises continuous learning and growth. For the organisation, it provides a focus to plan its own future through its human resources.

Page 3

Training

 Training has been defined as “a planned process to modify

attitude, knowledge or skill behaviour through learning

experience to achieve effective performance in an activity or

range of activities”.

 Training is essentially concerned with short-term performance

of the job or task in hand. As such, it provides the

preparation to undertake specific requirements by, usually,

the development of particular skills. So, for example, it may

include training to use a new piece of equipment or a new

computer application, or to improve letter writing or report

writing skills. It may also be linked to development plans, for

the individual and the org, in which case it may be applied to

assist with career growth and the building of skills, which may

or may not be immediately required but will be in the future.

Differentiate Development

and Trtaining

Development

 Concerned with long-

term

individual/organisational

, development than

short-term performance.

 It emphasises continuous

learning and growth. For

the organisation, it

provides a focus to plan

its own future through

its human resources.

Training

 Concerned with short-term

performance.

 It provides the preparation to

undertake specific requirements.

 It may also be linked to

development plans, for the

individual and the org, be applied to

assist with career growth and the

building of skills, which may or may

not be immediately required

Page 4

Identifying training needs-

the training gap

 Organizational analysis: org’s objectives, its resources, resource allocation and utilization, growth potential and its environment.

 Task analysis: analyse job to identify job contents, knowledge, skills and aptitude required. Tasks to be performed, methods used, employees’ learning methods and performance standard.

 Workforce analysis: required quality of workforce in context of internal and external environment.

Identifying training needs-

the training gap (Cont)

Page 5

Types of Training

Presentation methods:

Lectures

 Lectures: *standard lecture *team teaching: two or more trainers present different topics *guest speakers *panels: two or more speakers present info & ask ques *student presentations

 Advantages: *least expensive *least time consuming *large group can be employed *communicate large amount of information

 Disadvantages: *tend to lack participants involvement, feedback & meaningful connection to the work env *lectures appeal to few of the trainees senses, difficult to judge quickly the learners level of understanding.

Page 6

Presentation methods:

Audiovisual techniques

 Audiovisual techniques include overheads, slides & video. It has been used for improving com skills, interviewing skills & customer service skills & illustrating how procedures should be followed.

 Advantages: *trainers can review, slow down or speed up which gives flexibility *trainees can be exposed to equipment problem or events that can not be demonstrated *trainees are provided with consistent *trainees cn see & hear their own performance

 Disadvantages: *too much content for trainees to learn *poor dialogue between the actors *overuse of humour or music & drama that make it confusing for trainiees to learn

Hands on Method

 On the job training

 Simulations

 Case studies

 Business games

 Role plays

 Behaviour modeling

Page 7

Hands on Method: on the

job training (OJT)

 It refers to new or inexperienced employee learning

thru observing peers or managers performing the job &

trying to imitate their behaviour.

 It is useful for trng newly hired employees, upgrading

experienced employees with new technology, cross

training within dept & orienting transferred or new

employees

On the job training (OJT)

 Advantages of OJT: *need less investment in time &

money *expert managers are used as instructors *better

learning

 Disadvantages of OJT: *managers may not use the same

process to complete the task *trainees may learn bad

habit as well *unskilled instructor may develop unskilled

employees

Page 8

Effective OJT: some

conditions

 Policy statement describing the puropose of OJT & co’s support for that

 Clear specification of who is accountable for conducting OJT

 A thorough review of OJT practices in other similar cos

 Training of managers & peers

 Availability of lesson plans, checklists, procedures manuals, trng manuals, learning contracts, progress report etc

 Evaluation of employees levels of basic skills before OJT

Principles of OJT

 Preparing for instruction: *breakdown the job into

important steps *prepare the necessary equipment,

materials & supplies *decide how much time to devote

to OJT

 Actual instruction: *tell trainees the onj of the task &

ask them to watch demo *show how to do without

saying anything *explain the key points or behaviour

*show how to do it again *ask trainees to do the task &

praise for correct reproduction *in case of mistakes ask

them do again until accurate reproduction *praise

trainee for success

Page 9

Types of OJT

 Self-directed learning: employees take responsibility for all aspects of learning. Trainees master predetermined trng content at their own pace without an instructor. Trainers may serve as facilitator

 Apprenticeship: work study trng method with both on OJT. Advantages are: *earn while learn*results in full time employment. Disadvantages are: *no guarantee that they will get the job *for vocational people only

Hands on Method

 Simulation is a trng method that represent real life situation.

 Case studies: process for case development- *identify a story *gather info *prepare a story outline *decide on administrative issues *prepare case materials

 Business games

 Role plays experiential

 Behaviour modeling: presents trainees with a model who demonstrates key behaviours to replicate & provide trainee with the opportunity to practice key behaviour.

Page 10

Group Building Methods

 Group building methods are designed to improve team or group effectiveness. Here trainees share ideas & experiences, build group identity, understand the dynamics of interpersonal relationship & get to know their own strengths & weaknesses & those of their co-workers. Group building method often involve experiential learning which involves four stages: *gain conceptual knowledge & theory *take part in behaviour simulation *analyse the activity *connect theory & activity with real life situation

Group building methods

 Adventure learning: focus on development of teamwork/leadership skill thru structured outdoor activities. It is effective to develop self awareness, problem solving, conflict mgt & risk taking.

 Team training: co-ordinate the performance of individuals who work together to achieve a common goal. Three components of team performance: knowledge, attitude & behaviour. Structure of team trng: four main component – tools, methods, strategies (cross trng, coordination trng & team leader trng), team trng objectives.

 Action learning: gives team an actual problem, let them work on solving it & committing to an action plan & then hold them accountable for carrying out the plan.

Page 11

Orientation of New

Employees

Orientation: training

 • Orientation: training

designed to prepare

employees – to perform

their jobs effectively, –

learn about their

organization, and –

establish work

relationships.

Orientation:

objectives

 The objectives of

orientation programs

include making new

employees familiar with

the organization’s rules,

policies, and

procedures.

Contents of a Typical

Orientation Programme

Page 12

Evaluation of Training:

Transfer of Training

 Transfer of training: on‐the‐job use of knowledge, skills,

and behaviors learned in training.

 Can be measured by asking employees three questions

about specific training tasks: 1. Do you perform the

task? 2. How many times do you perform the task? 3. To

what extent do you perform difficult and challenging

learned tasks?

Evaluation Methods: Training

Outcomes  Information such as facts, techniques, and

procedures that trainees can recall after the training.

 Skills that trainees can demonstrate in tests or on the job.

 Trainee and supervisor satisfaction with the training program.

 Changes in attitude related to the content of the training.

 Improvements in individual, group, or company performance.

RR-F4/Human Resource Management/Support/HRM Lecture 7.pdf

Page 1

Human Resource Management

Session 7

LO2: Key elements of HRM

Session Objectives

By the end of the session, you will be able to:

 Design job and workplace.

 Manage rewards

 Understand and apply motivational theories

 Understand the methods of job design

Page 2

Job and Workplace Design

 Workforce planning is, in the broadest sense, the activity required to map the human resources required to achieve an organisation’s strategy.

 Work design deals with the way work is organised and managed including structures and grouping of functions.

 Job analysis is the process of describing what work needs to be done and includes specific responsibilities and working relationships.

 The manager is responsible for designing structure and jobs but it is also advisable that staff also are involved in designing jobs.

 When designing a new structure affected staff must be consulted prior to changes being made

Employee Reward Management

 Organisations today need to attract, motivate and retain

talent at a time when salary increases are not always a

viable option.

 Employee Reward Management is a key part of employee

engagement and should feature in any organisation's talent

management strategy.

 Businesses with successful employee reward management

plans are often highlighted as employers of choice and

realise competitive advantage through their people.

 Total Reward, or 'Flexible Benefits' packages in particular

offer a creative, personalised, cost-effective way in which

to attract, motivate and retain employees, without huge

increases in the wage bill.

Page 3

Objectives of Reward

Management

 Support the organisation’s strategy

 Recruit & retain

 Motivate employees

 Internal & external equity

 Strengthen psychological contract

 Financially sustainable

 Comply with legislation

 Efficiently administered

Basic Types of Reward

 Extrinsic rewards

 – satisfy basic needs: survival, security

 – Pay, conditions, treatment

 Intrinsic rewards

 – satisfy higher needs: job itself, esteem,

development

Page 4

Rewards by Individual, Team,

Organisation  Individual: base pay, incentives, benefits

 – rewards attendance, performance, competence

 Team

 – team bonus, rewards group cooperation

 Organisation

 – profit-sharing, shares, gain-sharing

Why fair design of reward

system? It will have positive impact on the efficiency and results .  It will encourage the normal worker to perform better and achieve the standards

fixed.

 It will encourage the process of job evaluation. It will also help in setting up an

ideal job evaluation, which will have transparency, and the standards fixing

would be more realistic and achievable.

 Enables worker/recipient to compute his own compensation receivable.

 It will raise the morale, efficiency and cooperation among the workers.

 It, being just and fair would provide satisfaction to the workers.

 Helps management in complying with the various labor acts.

 Bring about amicable settlement of disputes between workers & mgt.

 It would embody itself the principle of equal work equal wages.

Page 5

Reward Strategy

Motivation Defined

Motivation -

the psychological

processes that

arouse and direct

goal-directed

behaviour

5/25/2017 10

Page 6

3 Components of

Motivation:

 Direction relates to what an individual chooses to do when presented with a number of alternatives

 Intensity refers to the strength of response once the alternative is chosen

 Persistence refers to the staying power of behaviour or how long a person will continue to devote effort

5/25/2017 11

Needs and Expectations

of Work

 extrinsic rewards are those tangible benefits that individuals receive in return for their efforts

 intrinsic rewards are the psychological rewards that come from the experience of work

 social rewards are obtained by being with other people, having a sense of common purpose

5/25/2017 12

Page 7

Rewards

Extrinsic Reward is the

payoff, such as money

a person receives from

others for doing a

particular task

Intrinsic Reward is the

satisfaction, such as the

feeling of

accomplishment, a

person receives from

performing the

particular task itself

5/25/2017 13

How to foster intrinsic

motivation?

 Help employees find personal meaning

 Create an open and positive atmosphere

 Be enthusiastic

 Vary work roles

 Job enrichment

 Create a learning community

5/25/2017 14

Page 8

Maslow’s Hierarchy of Needs

(1954)

 5. Self-Actualization

 4. Esteem needs

 3. Social needs

 2. Safety needs

 1. Physiological needs

5/25/2017 15

What the Business Can Do

5/25/2017 16

Panel 12.2

1. Physiological Needs

2. Safety Needs

3. Belongingness Needs

4. Esteem Needs

5. Self-

actualization

needs Adequate breaks,

ensure comfort, arrange

seats to meet needs,

heating and ventilation

Page 9

What the Business Can Do

5/25/2017 17

Panel 12.2

1. Physiological Needs

2. Safety Needs

3. Belongingness Needs

4. Esteem Needs

5. Self-

actualization

needs

Confidentiality,

privacy, treat

employees fairly,

follow safety rules

What the Business Can Do

5/25/2017 18

Panel 12.2

1. Physiological Needs

2. Safety Needs

3. Belongingness Needs

4. Esteem Needs

5. Self-

actualization

needs

Offer interaction with

others, participation in

groups, Show that you

care, provide

cohesive climate

Page 10

What the Business Can Do

5/25/2017 19

Panel 12.2

1. Physiological Needs

2. Safety Needs

3. Belongingness Needs

4. Esteem Needs

5. Self-

actualization

needs

Offer recognition,

praise when

appropriate, welcome

ideas, treat staff with

dignity

What the Business Can Do

5/25/2017 20

Panel 12.2

1. Physiological Needs

2. Safety Needs

3. Belongingness Needs

4. Esteem Needs

5. Self-

actualization

needs

Be enthusiastic and

supportive, create and

support a career

structure, be positive

about the future,

promote optimism

Page 11

Herzberg two factors theory

 HYGIENE factors:

features of a business environment which, if present, help avoid dissatisfaction with work.

 MOTIVATORS:

features of the work itself, that employees find enjoyable and that have a motivational effect

Herzberg’s Two -factor

Theory

 Hygiene Factors

 Security

 Facilities

 Quality of management

 Rules and procedures

 interpersonal relations

 Motivators

 sense of achievement

 recognition

 responsibility

 nature of work

 personal growth and advancement

5/25/2017 22

Page 12

Application in the Business:

5/25/2017 23

1.Managers should try to achieve a state of no dissatisfaction (attend to hygiene factors)

2.Increase the opportunities for achievement, recognition, Responsibility, advancement and growth.

Expectancy Theory

Expectancy

Theory suggests that people are

motivated by two things

(1) how much they

want something

(2) how likely they

think they are to get it

5/25/2017 24

Page 13

Expectancy Theory

5/25/2017 25

The strength of a tendency to act in a certain way

depends on the strength of an expectation that

the act will be followed by a given outcome and

on the attractiveness of that outcome to

the individual

Business approaches

 Give praise to your employees

 Recognise their achievements

 Emphasise that hard work will lead to career

enhancement

 Emphasise the value of achieving the desired outcome

5/25/2017 26

Page 14

Equity Theory

5/25/2017 27

Employees may compare their

inputs and outcomes with those

of others and then respond so as

to eliminate any

inequities.

Equity Theory

5/25/2017 28

Panel 12.7

My Inputs Their Inputs

My inputs are

compared with other

employees’ inputs

My Outputs Their Outputs My outputs are

compared with other

employees’ outputs

Page 15

Equity Theory

5/25/2017 29

Panel 12.7

Equity is

perceived

Inequity is

perceived

Comparison

“How does it seem the ratio of my inputs and

outputs compares with the ratio of theirs? Are

they fair (equity) or unfair (inequity)?”

Approaches to employees

Reduce employees’ tendencies to compare themselves to one another:

 Focus on individual or group work rather than competitive

 Refrain from public criticism of employees’ performance

 Emphasise effort put in rather than achievement

5/25/2017 30

Page 16

Series of Job Design- job

extension techniques

Job Design

 Job design logically follows job analysis. Job analysis provides job related data as well as the skill and knowledge expected of the incumbent to discharge the job. Job design involves organizing tasks, duties and responsibilities into a unit of work to achieve certain objectives.

 Job design is the process of deciding on the contents of a job in terms of its duties and responsibilities, on the methods to be used in carrying out the job in terms of techniques, systems and procedures, and on the relationships that should exist between the job holders and his supervisors, subordinates and colleagues.

Page 17

Job Rotation

 It is one of the methods of job design which is an

answer to the problem of boredom. Job rotation implies

the shifting of an employee from one job to another

without any change in the job. With job rotation, a

given employee performs different jobs but, more or

less, jobs of the same nature.

Job Simplification:

 Here the jobs are simplified or specialised. A given job is broken down into small sub-parts and each part is assigned to one individual.

 Job simplification involves (i) Mechanical processing of work; (ii) Repetitive work process (assembly lines); (iii) Working on only one part of a product; (iv) Predetermining tools and techniques; (v) Few skill requirements.

 Work simplification is done so that less- trained and the less paid employees can do these jobs.

Page 18

Job Enlargement:

 It is the process of increasing the scope of a job by adding more tasks to it. The related tasks are combined. Job enlargement involves expanding the number of tasks or duties assigned to a given job. Job enlargement therefore, naturally is opposite to work simplification. Adding more tasks/ duties to a job does not mean that new skill and abilities are needed to perform it. There is only a horizontal expansion.

 Job enlargement reduces monotony and boredom. It helps to increase interest in work and efficiency. But there is no time increase of the job. Enlarged jobs require longer training period as there are more task to be learned.

Job Enrichment:

 It involves designing a job in such a way that it provides

the workers greater autonomy for planning and

controlling his own performance. It seeks to improve

tasks, efficiency and human satisfaction by building into

people’s jobs, greater scope for personal achievement

and recognition, more challenging and responsible work

and more opportunity for individual advancement.

RR-F4/Human Resource Management/Support/HRM Lecture 8.pdf

Page 1

Human Resource Management

Session 8

LO2: Key elements of HRM

Session Objectives

By the End of the Session you will be able to :

 Understand flexibility in organisations

 Design methods of workplace flexibility

 Understand performance management

 Determine the methods of payment and rewards

Page 2

The flexible organizations

 Flexibility is about an employee and an employer making changes to when, where and how a person will work to better meet individual and business needs. Flexibility enables both individual and business needs to be met through making changes to the time (when), location (where) and manner (how) in which an employee works. Flexibility should be mutually beneficial to both the employer and employee and result in superior outcomes

 Formal flexibility policies are "officially approved human resources policies, as well as any official policies that give supervisors discretion to provide flexibility.“

 Informal flexibility refers to "policies that are not official and not written down but are still available to some employees, even on a discretionary basis."

Numerical Flexibility

 This refers to a firm’s ability to adjust the level of

labour inputs to meet fluctuations in outputs. There is

increased use of part-timers, temporary, short-term

contract staff, job sharers and agency workers.

There is a contrast between ‘core’ permanent

workforce and ‘peripheral’ non-permanent. The general

idea is that an increasing mixture of non-standard

employment forms will be more efficient and cheaper.

Page 3

Functional Flexibility

 This refers to a firm’s ability to adjust and deploy the

skills of its employees to match the tasks required by its

changing workload, production methods. This is done by

multi-skilling / dual skilling / dismantling of traditional

rigidities between occupational groups (horizontal and

vertical flexibility). This is designed to improve

efficiency and reduce costs.

This is a core area of traditional conflict within the

division of labour between distinct skilled groups and

between the skilled and the non-skilled

Financial flexibility

 Financial flexibility involves a company's ability to

adjust employment costs in response to supply and

demand in the external labour market. The objectives

of functional and numerical flexibility are made easier

thanks to financial flexibility. Also, it involves a move

away from standardised pay structures. It is directed

towards more individualised systems dependent upon

performance.

Page 4

Model of Flexible

Organizations

 The concept of a “flexible firm” (as proposed by John

Atkinson, 1985) recognizes that organizations will

requires enhanced flexibility to meet ever evolving

market and competitive pressures.

 The “flexible firm” model suggests that we can design

our workforces to proactively meet our business needs

through flexible staffing arrangements.

 Flexibility is a calculated risk utilized by organizations

to survive and gain strategic competitive advantage.

Atkinson’s Model for Labour

Flexibility

 Atkinson’s model for labour flexibility included “core”

workers and “peripheral” (secondary) workers.

Numerical flexibility, the expansion and contraction of

labour to address market fluctuations, would primarily

impact “peripheral” groups: part-time, temporary, or

contractual workforces. “Core” groups of full-time

employees would provide their organizations with

functional flexibility: an employee pool of skills that

could be moved about in reaction to emerging

technological, market or product changes.

Page 5

Model of Handy’s Flexible

Organizations

 Charles Handy’s Shamrock model advises a business to

have three types of workers:

 1. Core workers: full time, permanent staff, may be

managers/professionals, central production staff

 2. Peripheral workers: temporary, flexible, part-time

workers

 3. Contract workers: employed for a specific task,

often for a certain time period (outsourcing)

 With only core workers present, there would be no

flexibility of time or expertise. Including peripheral

workers in the workforce allows for the time aspect of

flexibility to be ensured, while including contract

workers allows for the expertise aspect to be achieved.

Model of Handy’s Flexible

Organizations

Page 6

Benefits of Workplace

Flexibility- Employees

 An improvement in productivity: Working in a flexible

environment helps the majority of employers as well as

employees to work smarter and increase their work

practices to be more effective and productive.

 - An improvement in work-life balance: In today's large

companies, many employees are striving to meet both

work and personal commitments. Workplace flexibility

somehow improves quality and effectiveness both in

their work and personal lives.

Benefits of Workplace

Flexibility- Employees

 - Increases employee job satisfaction: Employees

become more confident and motivated to perform in

their highest capacity, as they are more flexible to meet

their duties and are driven to work harder and more

creatively.

 - A flexible workplace environment shows that the

needs of the workers are taken into consideration, and

this in turn increases their loyalty, trust and respect

towards their employers

Page 7

Benefits of Workplace

Flexibility- Employer

 Having a flexible workplace increases the retention of

the permanent employees; organisations get to retain

experienced and valuable employees..

 - Minimizes absence and turnover: A flexible workplace

decreases the stress level of employees, stress that is

often caused by trying to meet their job and family

commitments at the same time. Flexibility enables

them to develop a greater sense of well-being, and look

forward to going to work each day.

 - With workplace flexibility, organisational resources are

matched more closely with customer/product demand.

Benefits of Workplace

Flexibility- Employer

 - A flexible workplace attracts highly qualified expertise

that become keen to share their experience and

knowledge in the company.

 - A flexible workplace results to greater profits and a

higher market share, due to the hard work and

dedication of its employees.

 - Employers get to save in recruitment costs, and

minimize the fixed labour costs, such as office space,

fuel, etc.

Page 8

Problems of Workplace

Flexibility

 Often, there is a need of a specialized management

team for the flexible workforce in organisations.

 - Training costs often increase when implementing

workplace flexibility.

 -There is an increase in complexity in administration.

 - Communication also gets affected; it tends to become

difficult because of the segmentation of the workforce.

 - Workplace flexibility often creates tension amongst

the diverse categories of workers due to uneven

treatment in terms of pay.

 - Workplace flexibility increases job insecurity,

especially for the part-time workers.

Flexible Working options

Page 9

12-17

Component

s of a

Human

Resource

Managemen

t System

HRM Components

 Performance Appraisal and Feedback

 Provides managers with the information they need to make good human

resources decisions about how to train, motivate, and reward

organizational members

 Feedback from performance appraisal serves a developmental purpose for

members of an organization

12-18

Page 10

HRM Components

 Pay and Benefits

 Rewarding high performing organizational members with raises, bonuses and

recognition.

 Increased pay provides additional incentive.

 Benefits, such as health insurance, reward membership in firm.

12-19

Performance Appraisal and

Feedback  Performance Appraisal

 The evaluation of employees’ job performance and contributions to their

organization.

 Performance Feedback

 The process through which managers share performance appraisal

information, give subordinates an opportunity to reflect on their own

performance, and develop with subordinates, plans for the future.

12-20

Page 11

Types of Performance

Appraisal  Trait Appraisals

 Assessing subordinates on personal characteristics that are relevant to job

performance.

 Disadvantages of trait appraisals

 Employees with a particular trait may choose not to use that particular trait on the

job.

 Traits and performance are not always obviously linked

 It is difficult to give feedback on traits.

12-21

Performance Appraisal and

Feedback  Behaviour Appraisals

 Assesses how workers perform their jobs—the actual actions and behaviours that exhibit on the job.

 Focuses on what a worker does right and wrong and provides good feedback for employees to change their behaviors.

 Results appraisals

 Managers appraise performance by the results or the actual outcomes of work behaviours

12-22

Page 12

Performance Appraisal and

Feedback  Objective appraisals

 Assesses performance based on facts (e.g., sales figures).

 Subjective appraisals

 Assessments based on a manager’s perceptions of traits, behaviour, or results.

 Graphic rating scales

 Behaviorally anchored rating scales (BARS)

 Behaviour observation scales (BOS)

 Forced ranking systems

12-23

Subject Measures of Performance:

Graphic Rating Scale

12-24

Figure 12.5

Page 13

Subject Measures of Performance:

Behaviorally Anchored Rating Scale

12-25

Figure 12.5

Subject Measures of Performance:

Behavioural Observation Scale

12-26

Figure 12.5

Page 14

Employee Reward Management

 Organisations today need to attract, motivate and retain

talent at a time when salary increases are not always a

viable option.

 Employee Reward Management is a key part of employee

engagement and should feature in any organisation's talent

management strategy.

 Businesses with successful employee reward management

plans are often highlighted as employers of choice and

realise competitive advantage through their people.

 Total Reward, or 'Flexible Benefits' packages in particular

offer a creative, personalised, cost-effective way in which

to attract, motivate and retain employees, without huge

increases in the wage bill.

Methods to Monitor

Employees Performance  Self Evaluation

 Self appraisals can supplement manager view.

 Peer appraisal

 Coworkers provide appraisal; common in team settings.

 360 Degree

 A performance appraisal by peers, subordinates, superiors, and clients who are in a position to evaluate a manager’s performance

12-28

Page 15

Methods to Monitor

Employees Performance

 Graphic Scales: Discussed above

 Checklists: A checklist evaluation method is simplistic

but effective. It consists of a series of performance

questions that are traditionally given the option of yes

or no.

 Critical Incident: A proactive manager keeps an ongoing

log throughout the year of an employee's performance,

and then uses that information to fuel discussion during

the employee performance review. This method of

keeping a list of good and bad incidents of employee

performance is known as critical incident evaluation.

Pay/Reward Strategies

“Reward strategy "theory"

Implicit in the notion of reward strategy is that of over-arching coherence”

All the parts of a reward strategy that is :

 the underpinning reward philosophy,

 the pay structure,

 its market positioning and

 its progression rules

All join together in a mutually supportive way.

Page 16

Pay and Benefits

 Pay

 Includes employees’ base salaries, pay raises, and bonuses

 Determined by characteristics of the organization and the

job and levels of performance

 Benefits are based on membership in an organization

12-31

Pay and Benefits

 Pay level

 The relative position of an organization’s incentives in comparison with those of other firms in the same industry employing similar kinds of workers

 Managers can decide to offer low, average or high relative wages.

 High wages attract and retain high performers but raise costs; low wages can cause turnover and lack of motivation but provide lower costs.

12-32

Page 17

Pay and Benefits

 Pay Structure

 The arrangement of

jobs into categories

based on their

relative importance

to the organization

and its goals, level of

skills, and other

characteristics.

CEO

VP VP VP

Director Director

Dept Manager

12-33

Pay and Benefits

 Benefits

 Legally required: social security, workers’ compensation

 Voluntary: health insurance, retirement, day care

 Cafeteria-style benefits plans allow employees to choose the best mix of benefits for them; can be hard to manage.

12-34

Page 18

Pay System  Employees concerned with purchasing power, fairness

& recognition of efforts & skills

 Employers concerned with recruitment, retention,

motivation & minimising wage budget

 Employers restricted by law & product markets re pay

 4 main alternative methods re setting base pay rates:

1. External labour market comparisons

2. Internal labour market mechanisms

3. Job evaluation

4. Collective bargaining

 Equity in procedures essential to successful pay system

Performance Related Pay

Success Criteria:

 Understand target & standards required to reach

 Reward clearly & closely linked to effort / attainment

 Need to ID what will get if achieve targets / standards & can track performance against them.

 Fair & consistent method for measuring performance.

 Ability to influence performance by changing behaviour.

 Rewards should be meaningful.

 Rewards should closely follow the achievement that generated it.

Page 19

Performance Related Pay  Management must ensure that:

 The purpose & processes clearly communicated to staff

 SMART objectives clearly defined &agreed

 Performance measured & consistently by line managers

 Line managers fairly differentiate between good & poor performers

 Staff believe pay decisions are fair & unprejudiced

 Limited performance pay budgets distributed fairly.

 Small sums distributed appropriately to avoid de- motivating staff

 Do not prejudice effectiveness of developmental aspects of performance management where review meetings focus on ratings & their pay implications. Preferably should be separated.

Legislation

 The Equal Pay Act 1970

“Illegal to pay different rates to men & women who do different jobs, but whose hobs have been rated the same under a job evaluation scheme”.

 The Equal Pay Amendment (Regulations) 1983

Added category of “Equal Value”

 The Employment Rights Act 1996

Consolidates previous legislation re employment rights.

 The National Minimum Wage Act 1998

Established an national minimum wage rate. Differences based on age. Provides protection for lowest paid groups of workers

RR-F4/Human Resource Management/Support/HRM Lecture 9.pdf

Page 1

Human Resource Management

Session 9

LO3: Employment Relations and Legislations

Employee Relations

Page 2

Session Objectives

By the End of the session, you will be able to :

 Understand what employee relations mean.

 Understand the strategies for building employee

relations

 Understand the purposes of employment law

EMPLOYEE RELATIONS DEFINED

Employee relations consist of all those areas of human

resource management that involve relationships with

employees – directly or through collective agreements

when trade unions are recognized.

Page 3

EMPLOYEE RELATIONS STRATEGY

Employee relations

Industrial relations Employee voice Communications

Recognition

Procedures

Consultation

Participation

Formal

Informal

THE DIMENSIONS OF THE EMPLOYMENT RELATIONSHIP

The employment

relationship

Parties:

• managers

• employees

• employee

representatives

Substance:

Individual:

• job

• reward

• career

• communications

Collective:

• trade unions

• consultative

committees

Operation:

• level

• process

• style

Structure:

• formal rules/

procedures

• informal

• understandings

and expectations

Page 4

THE PSYCHOLOGICAL CONTRACT DEFINED

The psychological contract expresses the

combination of beliefs held by an individual and

their employer about what they expect of one

another. These expectations are reciprocal but they

are unwritten.

OPERATIONAL MODEL OF THE PSYCHOLOGICAL

CONTRACT

Organizational culture

HRM policy and practice

Experience

Expectations

Alternatives

Fairness

Trust

The delivery of the deal

Organizational

citizenship

Organizational

commitment

Motivation

Satisfaction and

well-being

Causes Content Consequence

Page 5

THE ELEMENTS OF EMPLOYEE RELATIONS

 The management of the employment relationship

generally through the organization’s formal and informal

employment practices.

 The informal as well as the formal processes that take

place in the shape of continuous interactions between

line managers and individuals and their representatives.

 The development, negotiation and application of formal

systems and rules for collective bargaining and handling

disputes.

 The creation of an employee relations climate that is

acceptable to all parties and includes the development of

mutual trust, openness and the maintenance of

harmonious relationships.

EMPLOYEE RELATIONS: RECONCILIATION OF

INTERESTS

Employees Employers

Highest wages and

conditions

Profit/surplus

High-quality service

Survival of the

enterprise

Survival of the

enterprise

Reconciliation of

different interests

Processes

Agreements Reflect relative

bargaining powers

Different

interests

Common

interest

Page 6

EMPLOYEE RELATIONS POLICIES

 Trade union recognition – whether unions should be recognized or de-recognized.

 Collective bargaining – the areas to be covered and the extent to which it should

be centralized.

 Employee relations procedures – the nature and scope of procedures for

redundancy, grievance handling and discipline.

 Employee voice – the extent to which the organization is prepared to give

employees a voice on matters that concern them.

 Partnership – the extent to which a partnership approach is believed to be

desirable.

 The employment relationship – the extent to which terms and conditions of

employment should be governed by collective agreements or based on individual

contacts of employment (ie collectivism versus individualism).

 Harmonization of terms – the extent to which the terms and conditions of

employment for staff and manual workers should be harmonized.

 Working arrangements – the degree to which management has the prerogative to

determine working arrangements.

COLLECTIVE AGREEMENTS

Procedural agreements set out the respective duties and

responsibilities of managers and unions, the steps through

which they make joint decisions and the procedure to be

followed if they fail to agree. The purpose is to regulate the

behaviour of the parties to the agreements although they are

not legally enforceable. Substantive agreements set out agreed terms and conditions

of employment.

Partnership agreements involve both parties (management

and trade unions) agreeing to work together to their mutual

advantage and to achieve a climate of more cooperative and

therefore less adversarial industrial relations.

Page 7

MANAGING WITH TRADE UNIONS

The general trends are that managements in general (there are

exceptions):

 learn to live with unions (just as unions learn to live with

management) because both parties recognize that neither would

benefit from a climate of hostility or confrontation;

 are content to cooperate with unions but they give industrial

relations a lower priority;

 feel it is easier to continue to work with a union because it provides

a useful, well-established channel for the handling of grievance,

discipline and safety issues.

MANAGING WITHOUT TRADE UNIONS

The third Workshop Industrial Relations survey established that the characteristics of union-free employee relations were:

 Employee relations were generally seen by managers as better in the non-union sector than in the union sector.

 Strikes were almost unheard of.

 Labour turnover was high but absenteeism was no worse.

 Pay levels were generally set unilaterally by management.

 The dispersion of pay was higher, it was more market-related and there was more performance-related pay. There was also a greater incidence of low pay.

 In general, no alternative forms of employee representation existed as a substitute for trade union representation.

 Employee relations were generally conducted with a much higher degree of informality than in the unionized sector.

 Managers generally felt unconstrained in the way in which they organized work.

 There was more flexibility in the use of labour.

 Employees were more likely to be dismissed in non-union firms and the incidence of compulsory redundancy was higher.

Page 8

Strategies to Improve

Employee Relations

 Involve your team members: They should feel important and

indispensable for the organization.

 Encourage individuals to share their work with each other

 Assign them targets and ask all your team members to

contribute equally and achieve the target within the desired

time frame.

 One should try his level best that all the employees must

have their lunch together at the same time.

 Encourage effective communication among the team

members.

 Written modes of communication must be promoted among

the employees for better transparency.

 Morning meeting is another effective way to improve the

relation among the employees.

 Organize birthday, Christmas parties, New Year parties etc.

Purposes of Employment Law

 Industrial relations – certification of unions, labour-

management relations, collective bargaining and

unfair labour practices

 Workplace health and safety

 Employment standards, including general holidays,

annual vacations, working hours, unjust dismissals,

minimum wage, layoff procedures and severance pay

Page 9

THE PURPOSE OF EMPLOYMENT

LAW

 To deter employers from treating their employees

unfairly or from exploiting them unjustly

 To help make work more attractive to people

 To promote flexibility in the labour market

Legislative Framework of Human

Resource Management

 Legislative Framework Guiding the Recruitment and selection:

Sex Discrimination Act (1975)

Race Relation Act (1976)

Equal Pay Act (1970)

Disability Discrimination Act (1995)

Employment Act 2002

Page 10

Legal Environment of Human

Resource Management

 Other Legislation

 Such as the Americans with Disabilities Act and the Age Discrimination Act

of 1967, prohibits employment decisions based on biases against qualified

individuals with disabilities and the elderly.

 In general, the purpose of EEO legislation is to ensure that unemployment

decisions are based on job-related criteria only.

DISCRIMINATION LAW

There are four headings under which an

employer's actions can be challenged in court:

1.direct discrimination

2.indirect discrimination

3.victimization

4.harassment

Page 11

DISMISSAL LAW

Former employees who have completed more than two

years service (one year if employed prior to April 2012)

are entitled to seek compensation or re-instatement

when they have been unfairly dismissed.

DISMISSAL LAW

To be lawful it is essential that any dismissal is managed in

accordance with a fair procedure. In a case of poor work

performance this means that an employee must be invited to a

formal meeting, given a formal warning in writing, allowed an

opportunity to appeal, given a reasonable opportunity to improve

and, only then, dismissed following a further formal meeting with

aright to appeal.

Only when an employee is guilty of gross misconduct such as

stealing, fighting or serious insubordination, is an employer

entitled to dismiss summarily without notice. Here too though, a

fair procedure must always be followed, employees being given

every opportunity to defend themselves and to appeal the

dismissal. A further requirement is that employees facing

hearings at which they may be dismissed must always be

allowed to be accompanied by a work colleague and

represented by a trade union official.

Page 12

HEALTH AND SAFETY LAW

There are two distinct parts to health and safety law:

1.the criminal law, which is enforced by health and safety

inspectors

2.personal injury law, under which workers who suffer an

injury at work or fall ill as a result of their work can sue

their employer for damages

HEALTH AND SAFETY LAW

Health and safety inspectors carry out routine inspections of

employers' premises without warning, following which

they can issue improvement notices requiring that

changes are made to operations or prohibition notices

that prevent the employer from using a piece of

equipment or operating a system until recommended

changes have been made.

In either case a failure to make the required changes can

result in a criminal prosecution. Such prosecutions are

also brought when an employer's negligence or

recklessness leads either to a death or a serious injury.

In the most serious cases, charges of corporate

manslaughter can be brought against an organisation.

Most personal injury claims also involve demonstrating that

an employer or a fellow employee has acted negligently.

Page 13

HOURS AND WAGES

Two main legal provisions:

 The Working Time Regulations 1998

 National Minimum Wage regulations

The Data Protection Act

 The Data Protection Act controls how your personal information is used

by organisations, businesses or the government.

 Everyone responsible for using data has to follow strict rules called

‘data protection principles’. Rules:

 used fairly and lawfully

 used for limited, specifically stated purposes

 used in a way that is adequate, relevant and not excessive

 accurate

 kept for no longer than is absolutely necessary

 handled according to people’s data protection rights

 kept safe and secure

 not transferred outside the European Economic Area without adequate

protection

http://www.legislation.gov.uk/ukpga/1998/29/contents

https://www.gov.uk/eu-eea

Page 14

The Data Protection Act

 There is stronger legal protection for more sensitive

information, such as:

 ethnic background

 political opinions

 religious beliefs

 health

 sexual health

 criminal records

Redundancy

 According to the Employment Rights Act 1996, an employee is

dismissed by reason of redundancy if the dismissal is wholly or

mainly attributable to the fact that:

 the employer ceases to carry on the business in which the

employee was employed;

 the employer ceases to carry on that business in the place

where the employee was employed;

 the needs of the business for employees to carry out work of a

particular kind cease or diminish; or

 the needs of the business for employees to carry out work of a

particular kind in the place where the employee was employed

cease or diminish.

 This is the definition that is relevant for the purposes of

determining whether or not a dismissal is fair and whether or

not the employee is entitled to a redundancy payment.

RR-F4/Management & Operations/Module Booklet/Harvard_Referencing.pdf

@ICTM PAGE 1 OF 9

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Harvard Referencing and Citation Guidelines

Referencing:

This is a method used to demonstrate to the assessors that a learner has conducted a thorough

and appropriate literature search. Equally, referencing is an acknowledgement that you have

used the ideas and written material belonging to other authors in your own work. As with all

referencing styles, there are two parts: Citing and the Reference List.

Referencing list format:

points or numbering)

PRINTED/PUBLISHED SOURCES

Book: by one Author

@ICTM PAGE 2 OF 9

Reference List: Barker, R., Kirk, J. and Munday, R.J. (1988) Narrative analysis. 3rd ed. Bloomington: Indiana University Press. In text reference for the above examples:

Book: Translated Author (surname), Initials. (Year) Title of book. Translated from (language) by (name of translator) Place of publication: Publisher.

Canetti, E. (2001) The voices of Marrakesh: a record of a visit. Translated from German by J.A.Underwood. San Francisco: Arion.

Multiple Books by same Author published in the same year Author (surname), Initals.(Year a/b/c) Title of book. Place: Publisher.

Soros (1966a) mentioned in his …………… According to Soros (1966b) modern literature……….

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Chapter of edited book or Secondary reference for Book and Journal

When an author refers to another author’s work and the primary source is not available

References List:

N.B. You are advised that secondary referencing should be avoided wherever possible and you should always try to find the original work

Journal Articles

Boughton, J.M. (2002) The Bretton Woods proposal: an in-depth look. Political Science Quarterly, 42(6), pp.564-78.

Foreign Journal

Author (surname), initials. (Year) Title of article [square brackets] Journal title Edition Page number Language of translation (round brackets) References List:

Caballero, D. (2003) [Policing without borders] Cambi16. 1(668) pg. 24 (in Spanish)

Report

Author (surname), initials. (Year) Title of report (underline or italicise) Publisher Report code and number (in brackets) References List:

Dearing, R. (1996) Review of qualifications for 16 – 19 year olds: quality and rigour in A Level examinations. London: SCAA Publications (COM/96/467)

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Annual Report:

Corporate author, Year of publication. Full title of annual report (if available), Place of Publication: Publisher.

Hounsome, I. W. (2001) Factors affecting the design and performance of flexible ducts in trench reinstatements. Unpublished Ph.D. thesis. Napier University.

Newspaper

Article with author

Author (surname), initials. (Year) Article Title (underline or italicise) Name of Newspaper Date (day, month, year) Page number References List:

Ward, L. (2004) Diploma plan to reward lower and higher abilities. The Guardian.18th February, p.4.

Article without an author

Title of publication Year of publication (in brackets) Title of article (underline or italicise) Day and Month Page number References List:

The Guardian (2004) HSBC CEO has come down at last. 23rd November, p. 10.

@ICTM PAGE 5 OF 9

ELECTRONIC SOURCES

Electronic Book (e-book)

Author (surname), initials. (Year) Title of book (underline or italicise) Name of e-book supplier [Online] Available at: URL (Date accessed) References List:

Articles in Electronic Journal

Haliday, J. (2004) 'Ford dealers test custom cable ads', Advertising age,75 (42), pg. 6. Proquest [Online]. Available at: http://proquest.umi.com/ (Accessed: 23 November 2004).

Article in Internet Journal Database

Lloyd, J. (2001) Blessed are the pure in heart: globalisation. New Statesman, 23 April [Online]. Available at: http://www.findarticles.com/p/articles(Accessed: 23 November 2004).

Online Material in the Internet without Date

Author (surname), initials. (Year) Title of article (underline or italicise) [Online], issue [Online] Available at: URL of web page (Date accessed).

References List:

Lloyd, J. (No Date) Blessed are the pure in heart: globalisation [Online]. Available at: http://www.findarticles.com/p/articles (Accessed: 23 November 2004).

Online Material from Internet without Author’s Name

Name of the Organisation, (Year) Title of article (underline or italicise) [Online] Available at: URL of web page (Date accessed).

References List: Marks & Spencer (2010) Marks and Spencer’s Corporate Strategy [Online]. Available at: http://www.m&s.co.uk/corporate/ (Accessed: 23 November 2004)

@ICTM PAGE 6 OF 9

Images from the Internet

Author (surname), initials. (Year) Title of image (underline or italicise) [Online image] Available at: URL (Date accessed) References List:

Marshall, J. (2000) Cathedral clock. [Online image]. Available at: http://www.westminstercathedral.org.uk/art/art_cathclock.html (Accessed 23 November 2004).

OTHER SOURCES

Computer Programme

References List:

Sanders, B. and William, B. (2001) Java in 2 semesters. (version 2) [computer programme] Microsoft Inc. New York.

Atlas

As for books, using the title page to find the information

References List:

The times atlas of the world (2004) London: Times Books.

Video / Film

Title of programme/film (underline or italicise) Year of distribution (in brackets) Director [Videocassette] Place of distribution: distribution company

References List

All about Eve (1977) Directed by Joseph Mankiewiez [Film]. United States: Twentieth Century Fox.

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Television programme Title of programme (underline or italicise) Year of publication (in brackets) Name of channel Date of transmission (day/month/time)

References List

Coronation Street (2004) ITV1, 25 November. 19.00hrs.

Audiocassette/CD/DVD

Author (if available, if not use title first) Year of publication (in brackets) Title of recording (underline or italicise) [Audiocassette] Place of publication: publisher. References List

Buenos: world Spanish (1995) [Audiocassette or CD or DVD]. London: BBC Books.

QUOTATIONS AND CITING INSIDE THE TEXT

You can incorporate references and quotations in a number of ways. The following examples use the Harvard Referencing.

Short quotations of a sentence or two are enclosed with quotation marks (“…”) and included in the main text.

Short Quotation

In this example, you are making a direct quote. Up to two lines can be included in the body of the text and must include the page number.

Smith (2003, p. 11) states that “Harvard referencing has to be done accurately”

@ICTM PAGE 8 OF 9

Longer Quotation

This should be indented in a separate paragraph. If part of the quotation is omitted, then this can be indicated by three dots.

Citations (inside the text)  If the originator’s name occurs naturally in the sentence, the year of publication

should follow in brackets. Example

Smith (2003) found that…or, In a recent study Smith (2003) argued that…

 If the author’s name would not naturally be included in the sentence add the author’s

name and year of publication in brackets i.e. Example

Management theories have become much more diverse (Anderson, 1996)

 For publications by two authors:

Example

In a recent study (Smith & Jones, 2003) it was argued that…

 If you are referring to a particular page or section of a work and the author’s name

would naturally be included in the sentence the date and page numbers follow in brackets i.e.

Example

In a recent study Smith (1996, p.26) argued that….

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 If the author’s name will not normally be included in the sentence all information is given in brackets i.e.

Example

In a recent study (Smith, 1996, p.26) it was argued that…

 In cases where the name of the author cannot be identified, the item should be referred to by title:

Example

Figures in a recent survey (Tourism trends, 2003. p. 12) showed that…

 In cases where the date of an item cannot be identified, the item should be cited:

Example

The earliest report (Smith, no date, p. 231) showed that…

 If the author and date are unknown:

Example

 When you refer to a corporate publication e.g. a company report, use the Company

Name: Example

A survey (Tourism trends, no date) showed that…

The recession affected………..(Hanson Trust plc, 1990)

RR-F4/Management & Operations/Module Booklet/Unit 4 Management and Operations Assignment Brief Feb 2018 NN.pdf

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT Pearson BTEC HND in Business (RQF)

Unit 4 Management and Operations

Session: February 2018

Programme title TNA67 Pearson BTEC HND in Business

Unit number and title Unit 4 Management and Operations

Unit Type Core

Unit Level and Credit value Level 4 15 Credit

Assessors Dr Reza Aboutalebi; Mr Andrew Appiah, Mr David Boyd

Issue Date 3 March 2018

Final assignment submission deadline

11-16 June 2018

Late submission deadline

18-23 June 2018

Resubmission deadline TBA

Feedback

Formative feedback will be available in class during the semester.

Final feedback will be available within 2 weeks of the assignment submission date.

General Guidelines

 The work you submit must be in your own words. If you use a quote or an illustration from somewhere you must give the source.

 Include a list of references at the end of your document. You must give all your sources of information.

 Make sure your work is clearly presented and that you use correct grammar.

 Wherever possible use a word processor and its “spell-checker”.

Internal verifier Prof Nurun Nabi

Signature (IV of the brief) *

[email protected] Date 1/3/18

mailto:[email protected]

Assignment Brief – continued

ICON College of Technology and Management Pearson BTEC HND in Business (RQF)

Unit 4: Management and Operations (L4) Session: February 2018

Coursework Recommended Word limit: 3,000–4,000

This Unit will be assessed by assignment. You are strongly advised to read “Preparation guidelines of the Coursework Document” before answering your assignment. ASSIGNMENT

Assignment Context and Business Scenario

You are an Operations Manager of an organisation of your choice and you have been asked by the CEO to investigate the impact of leaders and managers on the operations of this ever-growing organisation. You will need to produce a report for the senior leadership team that includes the following:

1. An introduction to the organisation and management structure.

2. Definition and roles of both managers and leaders, highlighting the differences between management and leadership.

3. The different roles of management and leadership in application to different organisational situations, supported by theories and concepts.

4. How classical theories (for example, scientific management) and behavioural theories (for example, Elton Mayo’s Hawthorne Effect) apply to the organisation and how these have supported growth and sustainable performance.

5. Conclusions on how managers and leaders have made an impact on the organisation and recommendations for future improvements.

Assignment Brief – continued

What you must do

The following tasks are required to be carried out: LO1 Differentiate between the role of a leader and the function of a manager. Using examples from your organisation, define and compare the different roles and characteristics of a leader and a manager [P1]. To achieve M1, you should analyse and differentiate between the role of a leader and function of a manager by effectively applying a range of theories and concepts in your chosen organisation. LO2 Apply the role of a leader and the function of a manager in given contexts. Using examples from your chosen organization, examine examples of how the role of a leader and the function of a manager apply in different situational contexts. [P2]. Using examples from your chosen organization apply different theories and models of approach, including situational leadership, systems leadership and contingency [P3]. To achieve M2, you should assess and evaluate the strengths and weaknesses of different approaches to situations within the work environment. To achieve D1, you should critically analyse and evaluate the different theories and approaches to leadership using examples from your chosen organisation. (NB: To obtain D1 you must meet both M1 and M2 criteria).

LO3 Demonstrate an appreciation of the role leaders and managers play in the

operations function of an organisation.

Using examples from your chosen organisation, explain the key approaches to operations

management and the role that leaders and managers play [P4].

Using examples from your chosen organization explain the importance and value of operations

management in achieving business objectives [PP5].

To achieve M3, you should evaluate how leaders and managers can improve t h e efficiencies of operational management to successfully meet the business objectives of your chosen organisation.

LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment. Using examples from your chosen organisation, assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers [P6]. To achieve M4, you should analyse how the relationship between leadership and management affects the business environment and wider community of your chosen organisation.

To achieve D2, you should critically evaluate t h e application of operations management in your chosen organisation and t h e factors that impact on the wider business environment. (NB: To obtain D2 you must meet both M3 and M4 criteria).

Assignment Brief – continued

Grading Criteria Learning Outcome Pass Merit Distinction

LO1 Differentiate between the role of a leader and the function of a manager

P1 Define and compare the different roles and characteristics of a leader and a manager.

M1 Analyse and differentiate between the role of a leader and function of a manager by effectively applying a range of theories and concepts.

D1 Critically analyse and evaluate the different theories and approaches to leadership in given contexts.

LO2 Apply the role of a leader and the function of a manager in given contexts.

P2 Examine examples of how the role of a leader and the function of a manager apply in different situational contexts. P3 Apply different theories and models of approach, including situational leadership, systems leadership and contingency.

M2 Assess and evaluate the strengths and weaknesses of different approaches to situations within the work environment.

LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organisation.

P4 Explain the key approaches to operations management and the role that leaders and managers play. P5 Explain the importance and value of operations management in achieving business objectives.

M3 Evaluate how leaders and managers can improve efficiencies of operational management to successfully meet business objectives.

D2 Critically evaluate application of operations management and factors that impact on the wider business environment.

LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment.

P6 Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers.

M4 Analyse how these different factors affect the business environment and wider community.

Relevant Information Guide to student 1. Preparation guidelines of the Coursework Document

referencing system. g. You should provide references using the Harvard referencing system. h. Do not use Wikipedia as a reference.

Assignment Brief – continued

2. Plagiarism and Collusion Any act of plagiarism or collusion will be seriously dealt with according to the College regulations. In this context the definition and scope of plagiarism and collusion are presented below: Plagiarism is presenting somebody else’s work as your own. It includes copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort. Collusion is copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism or collusion will be investigated and if found to have occurred will be dealt with according to the College procedure. (For details on Plagiarism & Collusion please see the Student Handbook)

3. Submission

a. Initial submission of coursework to the tutors is compulsory in each unit of the course. b. Student must check their assignments on ICON VLE with plagiarism software Turnitin to

c. All Final coursework must be submitted to the Final submission point into the unit (not to the Tutor). A student would be allowed to submit only once and that is the final submission.

d. Any computer files generated such as program code (software), graphic files that form part of the coursework must be submitted as an attachment to the assignment with all documentation.

e. Any portfolio for a unit must be submitted as a hardcopy to the Examination Office. f. The student must attach a tutor’s comment in between the cover page and the answer in the

case of Resubmission. 4. Good practice

a. Make backup of your work in different media (hard disk, memory stick, etc.) to avoid distress due to loss or damage of your original copy.

5. Extension and Late Submission and Resubmission

a. If you need an extension for a valid reason, you must request one using an Exceptional Extenuating Circumstances (EEC) form available from the Examination Office and ICON VLE. Please note that the tutors do not have the authority to extend the coursework deadlines and therefore do not ask them to award a coursework extension. The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick.

b. Late submission will be accepted and marked according to the College procedure. It is noted that late submission may not be graded for Merit and Distinction.

c. All Late coursework must be submitted to the Late submission point into the unit (not to the Tutor). A student will be allowed to submit only once and that is the final submission.

Assignment Brief – continued

6. Submission deadlines

Submission deadlines Online to the ICON College VLE Final Submission date: 11-16 June 2018 Late Submission date: 18-23 June 2018

Glossary:

Analyse: Break an issue or topic into smaller parts by looking in depth at each part. Support each part with arguments and evidence for and against (Pros and cons). Break something down into its components, examine factors methodically and in detail to recognise patterns by applying concepts and making connections to predict consequences. Apply: Use a particular method/technique to solve a problem Compare: Estimate, measure or note the similarity or dissimilarity between one thing and another…(compare something to) draw an analogy between one thing and another for the purpose of explanation or clarification. Critically Evaluate/Analyse: When you critically evaluate you look at the arguments for and against an issue. Decide the degree to which a statement is true or the importance or value of something by reviewing the information. Include precise and detailed information and assess possible alternatives, and consider strengths and weaknesses if they were applied instead. Assess: Evaluate or estimate the nature, ability, or quality of something. Provide sufficient detail and/or understanding in responses. Learners will break something down into its components, examine factors methodically and in detail to present logical and coherent reasoning. Define: State or describe exactly the nature, scope, or meaning of something - establish the character of something; mark out the boundary or limits of something. Differentiate: The state of being strikingly different from something else, typically something in juxtaposition or close association. Point out the differences between at least two phenomena. Demonstrate: Show that you can do a particular activity or skill. Provide several relevant examples or related evidence which clearly support the arguments you are making. Evaluate: Examine in detail the meaning or essential features of a theme, topic or situation; break something down into its components; examine factors methodically and in detail, identify separate factors, say how they are related and how each one contributes to the topic to make reasoned judgements and conclusions. Review the information then bring it together to form a conclusion. Examine: Inspect (someone or something) in detail to determine the nature or condition. Explain: When you explain you must say why it is important or not important. Clarify a topic by giving a detailed account as to how and why it occurs, or what is meant by the use of this term in a particular context. Provide sufficient detail and/or understanding in responses.

RR-F4/Management & Operations/Module Booklet/Unit 4 Mangmt and Operations - SoW - Feb 18.pdf

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ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT Pearson BTEC HND in Business (RQF)

Unit 4 Management and Operations Scheme of Work

Session: February 2018 Course Code TNA67: PEARSON BTEC HND in Business (RQF)

Scheme of Work

This unit is aimed at achieving the following learning outcomes: LO1: Be able to use recruitment, selection and retention procedures LO2: Understand the styles and impact of leadership LO3: Be able to work effectively in a team LO4: Be able to assess the work and development needs of individual

Programme Title: TNA67 Pearson BTEC in Business

Unit number and Title 4 Management and Operations

Unit Type: Core

Unit Level and Credit Value Level 4 15 Credit

Sessions Learning Outcome Session Activities

Session1 Lecture 2 hours Tutorial 2 hours

LO1 To introduce the Unit’s content and the Unit assessment

Introduction to the module learning outcomes and the structure of the weekly activities. Unit learning outcome , Syllabus, and Assignment briefing Reading, Academic Skill, citation and referencing , group discussion

Session 2 Lecture 2 hours Tutorial 2 hours

LO1 Topic: Management functions Topic: Underpinning management theories Leadership vs management

Explore contemporary and seminal theories of management. • Classical management theories. • Behavioural theory. • Contingency theory. Definition of a manager. • Related and similar titles and responsibilities e.g. supervisor, team leader, department head etc. • Functions of a manager – planning, organising, controlling and directing. • De Bono’s ‘Six Thinking Hats’ based on manager functions. • Skills requirements of an effective manager. Definitions and differences between leaders and managers. • Debate overlaps and similarities. • Explore significant leaders and good managers Sample activities: • Student quiz – list different titles and discuss their differences and similarities, and whether the actual function/role is different from a manager. • Group debate – are leaders and managers the same or not? Explain. • Individual research task – each student to find a significant leader or manager and explain what made him/her successful. Formative Feedback

Session 3: Lecture 2 hours Tutorial 2 hours

Topic: Leadership theory and skills recap and assessment check

Theories of leadership traits, style and contingency. • Transformational and transactional leadership. • Action-centred leadership. • ‘Hard’ management skills and ‘soft’ leadership skills. Sample activities: • Tutor-led explanations of theories, with examples in practice or of known leaders.

Page 2 of 4

• Group activity – present different groups with a transactional or transformational task to instruct followers and discuss impact of each style. • Individual research task – identify and list skills required to be a good leader, then discuss.

Session 4: Lecture 2 hours Tutorial 2 hours

LO2 Topic: Leaders and the management function application

Context’ and the influence on leaders/management behaviour. • Situational leadership theory. • Hersey-Blanchard situational leadership model. Sample activities: • Tutor to highlight importance of context when investigating people and behaviours. • Question and answer activity – how does/should leadership change when the work situation changes? • Tutor-led discussion and explanation of the Hersey- Blanchard model whilst students take notes. • Student reflection – do your leaders (if appropriate) adapt to circumstances? Write a short summary for the next session

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Academic writing and a review of academic requirements and submission format. Formative Feedback

Session 5: Lecture 2 hours Tutorial 2 hours

Topic: Leaders and the management function application

System leadership. • Task- or relationship-orientated approaches. • The application of chaos theory. • The concept of management by objectives. Sample activities: • Group discussion – discuss and assess ‘system leadership’ and its application. • Student research into chaos theory to present back in small groups. • Student debate on management by objectives and its effectiveness Formative Feedback

Session 6 Lecture 2 hours Tutorial 2 hours

LO3 Topic: Theory of operations management

Introduction and briefing for the second assignment. • Six Sigma principles • Lean production. • Queueing theory and associated approaches. Sample activities: • Pair work – investigate and present back the ‘Six Sigma’ model. Tutor guidance and peer review to assess research credibility. • Read articles on application lean production and discuss. • Group activity – to research Queueing theory and identify the use of the theories in practice

Session 7 Lecture 2 hours Tutorial 2 hours

Topic: Operations management approaches

The principles of total quality management (TQM). • Just-in-time (JIT) / Just-in-case (JIC) inventory management. • The concept of continuous improvement (Kaizen). Sample activities: • Tutor-led explanation of the TQM model. • Group activity – investigate and discuss the differences between JIT and JIC management approaches and assess their effectiveness using real scenarios or case studies. • Pair work – reviewing case studies on the application of Kaizen discuss the benefits and present back key points.

Session 8: Lecture 2 hours Tutorial 2 hours

Topic: Operational functions to manage (Part 1)

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between JIT and JIC management approaches and assess their effectiveness using real scenarios or case studies. • Pair work – reviewing case studies on the application of Kaizen discuss the benefits and present back key points.

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Academic writing and a review of academic requirements and submission format. Formative Feedback

Session 9: Lecture 2 hours Tutorial 2 hours

LO4 Topic: Operational functions to manage (Part 2)

Procurement and purchasing. • Logistics, resources and inventory management. • Scheduling and time planning. Sample activities: • Tutor-led delivery on the concept of procurement and purchasing. • Individual research – resource management, to explain to the group. • Group activity – apply scheduling to a given scenario and identify the challenges and obstacles of the task.

Session 10 Lecture 2 hours Tutorial 2 hours

Leadership and management and the dimensions of the business environment

The relationship between leadership and management. • Corporate social responsibility (CSR). • Organisational culture, values and business ethics. • Sustainability. Sample activities: • Group activity – identify and discuss the different dimensions of a business environment. Prompted and guided by tutor. • Pair work – discussion to establish the link between good leaders/management and the above-mentioned concepts; compare and contrast different examples of organisational culture in different companies. Group activity - research and present case study examples of the impact of sustainability, CSR and business ethics

Session 11 Lecture 2 hours Tutorial 2 hours

Stakeholder relations

Leadership/management relations with stakeholders. • Stakeholder analysis and expectations. • Developing, encouraging and sustaining entrepreneurship and intrapreneurship. Sample activities: • Student ‘quick presentations’ – who are stakeholders? List stakeholders for a given business. • Small groups – understand a stakeholder analysis and apply it to a given scenario. • Group discussion – establish the link between effective leadership and good entrepreneurial culture

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address general

questions and concerns.

Academic writing and Formative Feedback

Session 12 Assignment workshop and re-cap

Review of student progress on the assessment. Review of academic requirements and submission format. Individual student queries and questions

Session 13 Study week

Session 14 Final Assignment Submission

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Pearson Edexcel Standard Verifier (EE): Cheran Stevens Standard Verifier (EE) Visit Date: TBA Recommended Reading Bailey, S. (2011), Academic Writing – A Handbook for International Students, London, Routledge Burns, T. and Sinfield, S (2016), Essential Study Skills: The Complete Guide to Success at University, Los Angeles, SAGE. Leigh A and Maynard M. (2002), Leading Your Team: How to Involve and Inspire Teams, Nicholas Brealey Publishing Mullins J L (2007), Management and Organisational Behaviour, 8

th Edition, Financial Times/Prentice Hall

Roberts G. (2005), Recruitment and Selection - Developing Practice, 2

nd Edition, CIPD

Swales, J. M and Feak, C, B. (2012), Academic Writing for Graduate Students, Ann Abor, The University of Michigan. Journals Personnel Today (Reed Business Information) People Management (Chartered Institute of Personnel and Development) Management Today (Haymarket Business Media) European Management Journal (Elsevier) British library Harvard Business Review (Harvard Business Publishing) available in ICON library Journal of Business Strategy (Emerald) British Library Journal of Management Studies (John Wiley and Sons) available in ICON library Economist (available in ICON Library Websites: Pearson Resources: Student Portal: HN Global Please access HN Global for additional resources support and reading for this unit. For further guidance and support on presentation skills please refer to the Study Skills Unit on HN Global. Link to: https://www.highernationals.com/ www.thetimes100.co.uk Free materials and case studies www.cipd.co.uk Chartered Institute of Personnel and Development www.businessballs.com Businessballs - a free ethical learning and development resource. Free materials, articles and ideas for team roles and leadership www.belbin.com Belbin’s website with team role profiles www.acas.org.uk Advisory, Conciliation and Arbitration Service website with guidance on legal requirements for recruitment and selection

https://www.highernationals.com/

http://www.thetimes100.co.uk/

http://www.businessballs.com/

http://www.belbin.com/

http://www.acas.org.uk/

RR-F4/Management & Operations/Support/Academic Writing 2.pdf

Academic writing skills

Writing, referencing & using electronic resources

“Care in the choice of one’s words is the respect that the mind

pays

to the instrument of its own being”

Agenda

• Writing

– What is academic writing

• Referencing

– Books

– Articles

– Others

• Electronic resources

Academic writing

• What is it all about?

Writing

• Academic writing is Formal

– No exaggeration (Not: extremely important)

– Impersonal (no use of “I am”)

– Direct to the meaning

– No final judgment!! Always allow for arguing and

accepting other opinions!!

WHAT DOES FORMAL WRITING

LOOK LIKE?

• Focus on the issue, not the writer Keeping

your writing objective and impersonal can make

it more convincing.

– It will be argued that the benefits of sales

promotion outweigh the disadvantages.

– I will argue in this assignment that ...

Choose words with precise

meanings

• Avoid words with vague meanings

– Compare:

• The writer looks at the issue

– with

• The writer examines the issue.

• The second option is more formal.

– Formal choices:

• He states … maintains … argues

– Informal choices:

• He says … talks about …

Add some style

• Writing is a very logical exercise, adding

style to it will enhance clearness and

power of convincing…

– Phrases for transition

– Phrases for emphasis

– Phrases for counterpoint

Phrases for transition

• Regarding

• Admittedly

• Consequently

• As a result

• Ultimately

• According to

• For this reason

Phrases for emphasis

• Moreover

• In fact

• Additionally

• For example

• In point of fact

• As a matter of fact

• Indeed

Phrases for counterpoint

• Conversely

• On the other hand

• However

• Nevertheless

• Notwithstanding

• Nonetheless

• Yet

• Despite

• Although

• Instead

Referencing

• What does referencing mean?

• Why should I include references in my

work?

• How do I reference my work?

What does referencing mean?

• When writing an academic piece of work

you need to acknowledge any ideas,

information or quotations which are the

work of other people. This is known as

referencing or citing.

Why should I include references

in my work?

• You should include references in order to:

– acknowledge the work of others

– provide evidence of your own research

– illustrate a particular point

– support an argument or theory

– allow others to locate the resources you have used

• And most importantly:

– avoid accusations of plagiarism

How do I reference my work?

• Your references should be consistent and

follow the same format. Various systems

have been devised for citing references,

but most Schools use the Harvard system

Referencing while writing

• References will be cited in your work in

two places: -

– 1) Where a source is referred to in the text

(Citation)

– 2) In a list (the Bibliography/List of references)

at the end of the assignment.

Citing references in the text

• Citing the author in the text

• Whenever a reference to a source is

made, its author's surname and the year

of publication are inserted in the text as

in the following examples...

Citing references in the text Cont.

– Dogs were the first animals to be

domesticated (Sheldrake, 1999).

• If the author's name occurs naturally in the

sentence the year is given in brackets .>>

– Sheldrake (1999) asserts that dogs were the

first animals to be domesticated.

Using direct quotes

• If you quote directly from a source you must

insert the author’s name, date of publication

and the page number of the quotation.

– ‘The domestication of dogs long predated the

domestication of other animals.’ (Sheldrake, 1999,

p.5).

• The page number should be given at the end of

the quote, in separate brackets if necessary, as

in the example below.

– Sheldrake (1999) asserts that the ‘domestication of

dogs long predated that of other animals.’ (p.15).

Citing works by more than one

author

• If your source has two authors you should

include both names in the text.

– Anderson and Poole (1998) note that a

‘narrow line often separates plagiarism from

good scholarship.’ (p.16).

Citing works by three or more authors

• If there are three or more authors you should

include the first named author and then add ‘et

al.’ in italics followed by a full stop. This is an

abbreviation of ‘et alia’ which means ‘and others’

in Latin.

– In the United States revenue from computer games

now exceeds that of movies (Kline et al., 2003).

Citing works by the same author written

in the same year

• If you cite two or more works written in the same year by the same author, then you must differentiate between them in both the text and your List of references by listing them as a,b,c etc.

– Natural selection can cause rapid adaptive changes in insect populations (Ayala, 1965a) and various laboratory experiments have been conducted to assess this theory (Ayala, 1965b).

Citing secondary sources

– Sheff (1993) notes that Nintendo invested heavily in advertising (cited in Kline et al.,2003, p.118).

Writing a Bibliography or List of

references

• The List of references appears at the end of

your work and gives the full details of everything

that you have cited in the text in alphabetical

order by the author’s surname

Printed books

• Printed books should be referenced using the following format and punctuation.

– Author/editor’s surname and initials.,

– (Year of publication).

– Title of book: including subtitles. (in italics or underlined)

– Edition. (if applicable)

– Place of publication: (followed by a colon)

– Name of publisher.

• Reference to a book with one author

– Sheldrake, R., (1999). Dogs that know when

their owners are coming home: and other

unexplained powers of animals. London:

Arrow Books.

• Reference to a book with two authors

– Anderson, J. and Poole, M., (1998).

Assignment and thesis writing. 3rd ed.

Chichester: John Wiley & Sons.

Print journals and newspapers

• Print journals should be referenced using the following format and punctuation. – Author's surname, initials., (or Newspaper title where

there is no author,)

– (Year of publication).

– Title of article.

– Name of journal. (in italics or underlined),

– Date of publication (if applicable e.g. 18 June)

– Volume number (in bold) (if applicable)

– (Part/issue number), (if applicable)

– Page numbers.

Example

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. 332 (7552), 1224-1225.

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. Vol. 332, No. 7552, pp.1224-1225

E-journal article accessed via

website on the open Internet

• Britton, A., (2006). How much and how often

should we drink? British Medical Journal. 332

(7552), 1224-1225. [online] Available

from:http://bmj.bmjjournals.com/cgi/content/full/3

32/7552/1224 [Accessed 2 June 2006].

http://bmj.bmjjournals.com/cgi/content/full/332/7552/1224

Websites, web pages

e.g. University of London)

– (Year of publication).

– Title. (in italics or underlined)

– Edition. (if applicable, e.g. update 2 or version 4.1)

– [online]

– Place of publication: (if known)

– Name of publisher. (if known)

– Available from: <URL>

– [Accessed (enter date you viewed the website)].

References

– Holland, M., (2005). Citing references. [online] Poole:

Bournemouth University. Available from:

<http://www.bournemouth.ac.uk/academic_services/d

ocuments/Library/Citing_References.pdf> [Accessed

2 June 2006].

– University of Westminster, (2007). Harry Potter fans to

cast spell over Westminster. [online] London:

University of Westminster. Available from:

<http://www.wmin.ac.uk/page-14428> [Accessed 24

July 2007].

RR-F4/Management & Operations/Support/Academic Writing Skills 1.pdf

Dr Marco Angelini,

UCL Transition Programme

With thanks to Dr Colleen McKenna for kind

permission in reproducing her material in this

presentation

Approaches to critical reading and writing

Outline for today

 Introduction

 Considering your writing practices

 Reading as part of writing

 Writing as part of thinking

 Planning

 Organising written work

 Looking at text

 Finding time to write

What type of writer are you?

The diver

The patchworker

The architect

The grand planner

Identifying your writing style

Previous writing experiences …

Reading as part of writing

Critical reading (and how it benefits your writing)

 Helps you determine what is and

what is not a robust piece of

research and writing in your field

 Helps you identify where existing

research has left a gap that your

work could fill

 Attention you pay to writing of others

helps you become more self-aware

of your own written work:

– Sufficient evidence to back up claims;

argumentation/reasoning; becoming

alert to your assumptions and how they

affect your claims

 Wallace and Wray, 2006

Critical reading?

How do you go about

reading an academic text

in your field?

Critical reading? Some possible approaches

How do you go about reading an

academic text?

 Use parts of the text: abstract,

contents, index, sub-headings,

graphs, tables, introduction and

conclusion

 Skim to get the gist of the argument

 Read with questions in mind

Critical reading? Some possible approaches

 Make notes/mind map/ use

highlighter

 Write a summary in your own words

 Write a brief critical response

 Keep note of bibliographic details

Critical reading/ critical writing

Handout – p. 12-13 Wallace and Wray

 As a critical reader, one evaluates

the attempts of others to

communicate with and convince

their target audience by means of

developing an argument;

 As a writer, one develops one's own

argument, making it as strong and

as clear as possible, so as to

communicate with and convince

one's target audience.

– Wallace and Wray, 2006

Free writing

 Way of using writing as a tool for

thinking

 Allows you to write without

constraints.

To do it –

Write continuously, in complete

sentences, anything that occurs to

you.

Free writing

Please write down EITHER

1. An idea / theme from your field

2. Use the topic:

‘what I enjoy about writing…’

Use a free writing technique to write

anything at all that occurs to you

about this topic.

This writing will not be shown to

anyone else.

Planning (Sharples)

 Plans should be flexible

 Through the writing process a deeper

understanding of topic is gained – thus,

planning is increasingly out of step as

writing develops:

– “The act of writing brings into being ideas

and intentions that the writer never had at

the start of the task or that could not be

expressed in any detail.”

Plans

 Free writing

 Notes/sketches

 Idea lists

– Ideas on post-it notes

 Mind map

 Skeleton paper with

sub-headings

 Outline

 Draft text

 Adapted from

Sharples, 1999

 What techniques do you use to

develop ideas in your writing

and/or signpost an argument?

Developing/sustaining argument

 ‘proving’ the thesis statement or

controlling argument

 Signposting argument (Giving the

reader cues; anticipating/referring

back)

 Using words which signal transition or

development – “However”,

“Nevertheless”, “Thus”, “Therefore”,

“Despite”

 Illustrating theoretical positions with

concrete examples

 Generalising from a particular set of

findings if possible

 Using subheadings

 Using/responding to counterarguments

and examples

 Anticipate next paragraph at end of

previous one

Signposting and making transitions

 Links between paragraphs – pick up point from the end of a paragraph at the start of next one.

 Conjunctions to express different kinds of meaning relations

– Temporal: when, while, after, before, then

– Causative: because, if, although, so that, therefore

– Adversative: however, alternatively, although, nevertheless, while

– Additive: and, or, similarly, incidentally

 Signposting through pronouns - this, these, those, that, they, it, them

 Adverbs: Firstly, secondly, etc

 Illustrative: For example, in illustration, that is to say,

Signalling conclusions

Citation

Examples of Citing

• The hip bone is confirmed to be connected to the thigh bone (Funny Bones, 1989).

• The cytoskeletal network acts like the strong bars within a scaffolding (Alberts et al., 1998)

• Slavic-Smith (2006) postulated three classifications for nucleoli in neurons

• It was shown in 2006 by Take That, that a successful comeback tour was possible [1].

Bibliographies

 Alberts, Bray, Johnson, Lewis,

Raff, Roberts & Walter. Essential

Cell Biology, 1st Edition, Garland,

1998

 Dickson, B (2002) Molecular

Mechanisms of Axon Guidance.

Science 298 1959-1964

 [1] www.bbc.co.uk/news

Writing tips

 Write a sentence for each paragraph you want

to write – you can then move them about easily

to form thread of argument

 Index tag the main points you want to use in

your references, so they can be found easily

while writing

 Write the introduction last

 Write the conclusion first

 Read what you have written aloud to see if it

sounds right

 Find best environment for you – when and

where do you work best

 Take a break before trying to do your final check

 Use a writing checklist

Making time for writing

 Write throughout the course

 Do free writing as frequently as

possible

 Snack and binge writing (Rowena

Murray)

 Writing groups

 Don’t wait until you feel ‘ready’ to

write…

Writing for learning

 Read regularly in the field. Find writers whose work you admire and study what and how they do things.

 View writing as part of a process rather than a product

 Find models of good writing in your discipline – analyse it; ask what works and what doesn’t; consider writing style; vocabulary; techniques – metaphor; explanation; signposting

 Reflect on your own writing practices

 Keep a notebook or learning journal

 Explore free writing

To sum up…

1. Asked ‘what type of writer are

you’? What are your writing

practices?

2. What are your approaches to

reading? How might you link

reading and writing?

3. Free writing as a means of

generating ideas

4. Thought about structure of the

essay at the paragraph level and

the overall level

5. Tried to relate these ideas back

to the outline.

Reference

Academic Writing Skills

Presentation - UCL https://www.ucl.ac.uk/transition/study-

skills.../Academic_Writing_Skills_11.pptx

RR-F4/Management & Operations/Support/Lecture LO1 - Material.pdf

RR-F4/Management & Operations/Support/Management and Operations - Lecture 1 Introduction.ppt

Lecture 1: Introduction of the Unit

Prepared by: Dr Gilbert Zvobgo

ICTM

Aim of Session: To introduce the Unit’s content and the Unit assessment

1. Ground Rules

2. Going over the Assignment Brief, including the assessment criteria of the Unit

3. Going over the Scheme of Work so that students see how they could allocate their time wisely.

4. Going over the Unit Specification so that students have an overview of the syllabus (also available on ICON VLE).

5. Library visit to help students check available books in their Unit and to suggest those they want the College to purchase.

6. Ask students to register with HN Global at:

Pearson Resources: Student Portal: HN Global (RQF)

https://www.highernationals.com/

7. Help students understand the importance of academic skills, academic writing, and referencing (citation and references).

RR-F4/Management & Operations/Support/Session 10 Lecture Notes.pdf

Unit 4: Management and

Operations

Session 10 (LO4): Effects of Environmental

Factors on Operations Management (P6)

Using examples from your chosen organisation, assess the factors

within the business environment that impact upon operational

management and decision-making by leaders and managers [P6]

Introduction

 List the four factors within the contemporary business

environment that impact upon operational management

and decision-making.

 Discuss how ‘corporate social responsibility’ can

influence operational management and decision-

making.

 Then talk about possible effect of ‘sustainability’ on

operational management and decision-making.

 say how ‘stakeholders’ may affect operations

management or/and decision making by managers.

 Analyse possible impact of ‘intrapreneurship’ on

operational management and decision-making.

Contemporary

Business

Environment

Elements of contemporary business environment

Business environment is shaped by variety of political,

economic, social, and technological elements. Four main

factors that form the modern or contemporary business

environment are as follow:

 Corporate social responsibility (CSR)

 Sustainability

 Stakeholders

 Intrapreneurship

Elements of contemporary business environment

 Corporate social responsibility (CSR) is a company's

sense of responsibility towards the community and

environment (both ecological and social) in which it

operates. Companies express this citizenship (1) through

their waste and pollution reduction processes, (2) by

contributing educational and social programs, and (3) by

earning adequate returns on the employed resources.

Elements of contemporary business environment

 Sustainability is the idea that goods and services should

be produced in ways that do not use resources that cannot

be replaced and that do not damage the environment.

 Sustainability is the quality of not being harmful to the

environment or finishing natural resources, and thereby

supporting long-term ecological balance.

Elements of contemporary business environment

 Stakeholders are anybody who can affect or are affected

by an organisation, strategy or project. They can be internal

or external and they can be at senior or junior levels.

Elements of contemporary business environment

 Intrapreneurship involves creating or discovering new

ideas or opportunities for the purpose of creating value,

where this activity involves creating a new and self-

financing organisation within or under an existing company.

 Intrapreneurship is acting like an entrepreneur within a

larger organization.

Effects of

contemporary

environment on

Operations

Management

Effects of contemporary environment on operation

Effects of Corporate Social Responsibility

 Corporate Social Responsibility (CSR) encourages

organisations to be fair and ethical in their operations. So

leaders in Operations Management should care about

suppliers and distributors’ of the company too.

 CSR also encourages organisations to take some

responsibilities for wellbeing of customers and non-

customers. This expectation can have considerable effect

on the work done by Operations Management because

Operations Management normally focus on customers only.

 Managers or leaders may face with some decision making

complications regarding CSR because the shareholders of

the company may not want the company’s resources are

being used for non-customers. 10

Effects of contemporary environment on operation

Effects of Sustainability

 Sustainability can be costly or very complicated for the

operations of many companies. For example reliance on

the energy produced by sustainable methods such as use

of solar-panels or wind can be much more expensive than

non-sustainable sources.

 Sustainability of operations may require massive

investment in new environmentally friendly technology

or manufacturing facilities. Many organisations like to be

sustainable but they may not have enough financial,

technological and even managerial resources to become a

real sustainable company.

 So leaders or managers may hesitate to be sustainable.

Effects of contemporary environment on operation

Effects of Stakeholders

 Stakeholders do have strong impacts on the operations of

the organisation and the decision by the manager/leaders.

 Effects of stakeholders on the Operations Management

are very complicated because of contradictory

expectations of different stakeholders. For example

customers who are one group of stakeholders may want

products with high quality and very low price but the

shareholders (owners) who are another group of stakeholders

prefer customers pay high price for high quality products of

their company to cover the costs and be profitable.

 Thus Operations managers or leaders face with difficult

decisions on how to satisfy opposite expectations of different

stakeholders of their organisations. 12

Effects of contemporary environment on operation

Effects of Intrapreneurship

 Intrapreneurship helps big organizations to innovate

faster, better and continuously, by adapting innovation

methods successfully used by start-ups.

 Intrapreneurship allows the freedom of experimentation

in different operations and growth in an organization.

 It encourages autonomy and independence in

Operations Management when studying every aspect of an

issue and attempting to find the best resolution. For

example, intrapreneurship may involve recommending a

more efficient workflow chart, increasing a company’s

brand within a target group or implementing a way to

benefit company culture.

RR-F4/Management & Operations/Support/Session 2 Lecture Notes.pdf

Page 1

Session 2 (LO1): Management Concept

and Theory (P1- part 1)

C O M P L I E D B Y N N 1

Using examples from your organisation, define and compare the

different roles and characteristics of a leader and a manager [P1].

Unit 4: Management and

Operations

Management is the process of Planning,

Organising, Leading and Controlling

resources effectively and efficiently in an

effort to achieve the goals of the organisation.

MANAGEMENT DEFINED

C O M P L I E D B Y N N 2

Page 2

EFFECTIVENESS VS. EFFICIENCY

C O M P L I E D B Y N N 3

Effectiveness is achieved when the

organization pursues appropriate goals.

This means “doing the right thing.”

Efficiency is achieved by using fewer

inputs (e.g., people, money) to generate

a given output. This means “doing

things right.”

WHAT IS AN ORGANIZATION?

C O M P L I E D B Y N N 4

An organization is a group of individuals

who work together toward common goals.

WHAT DO ALL ORGANISATIONS HAVE IN COMMON?

They are made up of people, and the efforts of

these people must be coordinated if the

organisation is to accomplish its goals.

Page 3

Planning

Controlling

Organizing

Leading

Organizational

goals

THE FOUR FUNCTIONS OF MANAGEMENT

C O M P L I E D B Y N N 5

According to Henri Fayol every manager has four functions.

THE FOUR FUNCTIONS OF MANAGEMENT

• Planning

• Setting goals and defining the actions necessary to achieve those

goals.

• Organizing

The process of determining the tasks to be done, who will do them,

and Leading

• Leading (Motivation and Direction):

• Motivating and directing the members of the organization so that

they contribute to the achievement of the goals of the organization.

• Controlling

• Monitoring the performance of the organization, identifying

deviations between planned and actual results, and taking

corrective action when necessary.

• How those tasks will be managed and coordinated.

C O M P L I E D B Y N N 6

Page 4

MANAGERS

C O M P L I E D B Y N N 7

Managers are people who plan, organize,

lead, and control the activities of the

organisation so that its goals can be

achieved.

Decisional roles

• Entrepreneur

• Disturbance

handler

• Resource

allocator

• Negotiator

Interpersonal roles

• Figurehead

• Leader

• Liaison

Informational roles

• Monitor

• Disseminator

• Spokesperson

LEADERSHIP (MANAGERIAL) ROLES

C O M P I L E D B Y N N 8

According to Mintzberg every manager has ten Leadership Roles.

Page 5

MINTZBERG’S LEADERSHIP/MANAGERIAL ROLES

Interpersonal Roles

 The manager’s responsibility for managing

relationships with organizational members and other

constituents:

Figurehead

Leader

Liaison

C O M P L I E D B Y N N 9

Informational Roles

 The manager’s responsibility for gathering and

disseminating information to the stakeholders of the

organization:

Monitor

Disseminator

Spokesperson

C O M P L I E D B Y N N 10

MINTZBERG’S LEADERSHIP/MANAGERIAL ROLES

Page 6

Decisional Roles

The manager’s responsibility for processing information and reaching conclusions: Entrepreneur

Disturbance handler

Resource allocator

Negotiator

C O M P L I E D B Y N N 11

MINTZBERG’S LEADERSHIP/MANAGERIAL ROLES

Functional Managers

General Managers

Managers who are responsible for managing a

work unit that is grouped based on the function

served.

Managers who are responsible for managing

several different departments that are

responsible for different tasks.

SCOPE OF RESPONSIBILITY

C O M P L I E D B Y N N 12

Page 7

Chief Executive

General Parts Inc.

Plant

Manager

Service

Manager

Account

Manager

Payroll

Manager

A functional manager is a manager responsible for a

work group segmented by function.

A general manager is a manager responsible for several

different work groups segmented by task.

VP of

Production

VP of

Finance

FUNCTIONAL MANAGER

C O M P L I E D B Y N N 13

Operational Employees

LEVELS OF MANAGEMENT

C O M P L I E D B Y N N 14

Top Level

Managers

Middle

Managers

Line Managers

(Supervisors)

Page 8

SKILLS NEEDED AT DIFFERENT LEVELS OF

MANAGEMENT

Technical Skills

 The ability to utilise tools, techniques, and procedures

that are specific to a particular field.

Human Skills

 The ability to work effectively with others.

Conceptual Skills

 The ability to analyse complex situations and respond

effectively to the challenges faced by the organisation.

C O M P L I E D B Y N N 15

Line Management

Middle Management

Top-Level Management

Conceptual

Human

Technical

Conceptual

Human

Technical

Conceptual

Human

Technical

SKILLS NEEDED AT DIFFERENT

LEVELS OF MANAGEMENT

C O M P L I E D B Y N N 16

RR-F4/Management & Operations/Support/Session 3 Lecture Notes.pdf

Session 3 (LO1): Leadership vs Management (P1- part 2)

C O M P I L E D B Y N N 1

Unit 4: Management and

Operations

Using examples from your organisation, define and compare the

different roles and characteristics of a leader and a manager [P1].

• Leadership is the art of influencing human

behaviour in order to accomplish a mission in the

manner desired by the leader.

• “Leadership is the ability to influence a group

toward the achievement of a vision or set of

goals” (Robin and Judge, 2007)

C O M P I L E D B Y N N 2

DEFINITION OF LEADERSHIP

• Leadership is the ability to direct a group of people

in realising a common goal.

• This is done by people applying their leadership

attributes.

• Leaders create commitment and enthusiasm

amongst followers to achieve goals.

• Leadership is achieved through interaction between

leader, follower and environment.

C O M P I L E D B Y N N 3

Essential of Leadership (EL)

DEFINITION OF MANAGEMENT

• Management is the process of employing personnel and

materiel in the economical and effective accomplishment of

the mission.

• Management is the process of Planning, Organising,

Leading and Controlling resources effectively and efficiently

in an effort to achieve the goals of the organisation.

C O M P I L E D B Y N N 4

C O M P I L E D B Y N N 5

DIFFERENCES BETWEEN LEADERSHIP &

MANAGEMENT

COMPARISON

• Leadership is influencing others, it is not a

position and it is not getting people to do

something simply because their job requires it

• Management is more directed towards

employing resources (material and personnel)

efficiently to achieve goals

C O M P I L E D B Y N N 6

SUMMARY

• Leadership is the art of influencing human behaviour in order to accomplish a mission in the manner desired by the leader.

• Management is the process of employing personnel and material in the economical and effective accomplishment of the mission.

C O M P I L E D B Y N N 7

FACTORS ESSENTIAL FOR LEADERSHIP

• Influence

• Power

C O M P I L E D B Y N N 8

INFLUENCE

• The essential element of leadership is influence. If

there is no influence, there is no leadership.

• Influence means change. How can we determine the

influence of something or someone on someone else?

• Because leadership involves influence and influence

comes from power, we cannot understand leadership

without first understanding power.

C O M P I L E D B Y N N 9

POWER

Legitimate Power Reward Power Coercive Power

POSITION POWER

Expert Power Referent Power

PERSON POWER

POWER

C O M P I L E D B Y N N 10

POWER

• Leadership can be based on ‘position

power’ or ‘person power’.

• Position power is given by your rank or

position and gives you legitimate power, and

the power of rewards or coercion.

C O M P I L E D B Y N N 11

TYPES OF POWER BASED ON POSITION

• Legitimate power: the person complies (listen

and follow) because he/she believes that the

leader has the right to make the request and that

he/she has the obligation to comply.

• Reward power: the person complies in order to

obtain rewards controlled by the leader.

• Coercive power: the person complies in order

to avoid punishments controlled by the leader.

C O M P I L E D B Y N N 12

TYPES OF POWER BASED ON PERSON

• Expert power: the person complies because he/she

believes that the leader has special knowledge about

the best way to do something. It is based on

knowledge, training and experience.

• Referent power: the ability of a leader to influence a

follower because of the follower's loyalty, respect,

friendship, admiration, affection, or a desire to gain

approval.

C O M P I L E D B Y N N 13

SOME LEADERSHIP THEORIES

• Leaders are born not made: a bit of an old fashioned ideal,

largely borne out of the historical perspective of man (or

women) being born to lead by right of birth.

• Situational leadership: a theory developed by Blanchard

and Paul based on the idea that ones leadership style varies

depending upon the situation and that the skills necessary

are developable.

• Charismatic Leadership: focuses on traits, qualities and

personality. While charisma is often regarded as a key

quality necessary to be an effective leader, alone is not

enough.

C O M P I L E D B Y N N 14

LEVELS OF LEADERSHIP

C O M P I L E D B Y N N 15

STRATEGIC

LEADER

OPERATIONAL

LEADER

TEAM LEADER

Leaders exist at all levels of

an organisation and it worth

reflecting on which particular

level leader at.

Each of these levels of

leadership require some

similar and some different

skills and competencies.

LEVELS OF LEADERSHIP

Strategic Leader : a leader at the top level of the

organisation who has responsibility for a range of

organisational function, the people in this function and for

contributing the major decision.

Operational Leader: a leader in the organisation who has

responsibility for a departmental function (such as marketing

department or finance), all the people in the function and for

contributing to decision in their own special area.

Team Leader: a leader who operates at team level whose

prime responsibility is for the people who work with them

and the achievement of the task for which they are jointly

responsible.

C O M P I L E D B Y N N 16

RR-F4/Management & Operations/Support/Session 4 Lecture Notes.pdf

Page 1

Using examples from your organisation, define and compare the

different roles and characteristics of a leader and a manager [P1].

Unit 4: Management and

Operations

Session 4 (LO1): Theories of Management (P1-part 3)

SCHOOLS OF MANAGEMENT THOUGHT

Classical Perspective

Behavioral Perspective

Systems Perspective

Contingency Perspective

Page 2

CHRONOLOGICAL DEVELOPMENT OF THE

SCHOOLS OF MANAGEMENT THOUGHT

Classical

Perspective

Behavioral

Perspective

Systems

Perspective

Contingency

Perspective

1875 1900 1925 1950 1975 2000

CLASSICAL PERSPECTIVE

The oldest formal viewpoints of management, it

includes the following approaches:

Scientific

Management

Focuses on the

productivity of

the individual

worker

Administrative

Management

Focuses on the

functions of

management

Bureaucratic

Management

Focuses on the

overall

organizational

system

Classical Perspective

Behavioral Perspective

Systems Perspective

Contingency Perspective

Page 3

Frederick W. Taylor (1865-1915)

Father of ‘Scientific Management’.

Taylor was convinced that there was “one best way” to

perform every task.

Taylor attempted to define “the one best way” to perform

every task through scientific methods.

CLASSICAL PERSPECTIVE

Scientific Management

Focuses on the productivity of the individual worker

Classical Perspective

Behavioral Perspective

Systems Perspective

Contingency Perspective

Frank Gilbreth

Specialized in time and motion studies to determine

the most efficient way to perform tasks.

Used the new medium of motion pictures to examine

the work of bricklayers.

Identified 17 work elements (such as lifting and

grasping) and called them therbligs.

CLASSICAL PERSPECTIVE

Scientific Management

Page 4

Focuses on the managers and the functions they

perform

This approach to management is most closely

identified with Henri Fayol (1841-1925).

Fayol was the first to recognize that successful

managers had to understand the basic managerial

functions.

CLASSICAL PERSPECTIVE

Administrative Management

Henri Fayol

Developed a set of 14 general principles of

management.

His managerial functions of planning, leading,

organizing, and controlling are routinely used in

modern organizations.

CLASSICAL PERSPECTIVE

Administrative Management

Page 5

• Bureaucratic Management focuses on the overall

organizational system and is based upon firm rules,

policies, and procedures; a fixed hierarchy; and a

clear division of labor

Max Weber (1864-1920), a German sociologist and

historian, is most closely associated with

bureaucratic management.

CLASSICAL PERSPECTIVE

Bureaucratic Management

Max Weber

 Envisioned a system of management that would be based

upon impersonal and rational behavior.

 Conceptualized the approach to management referred to as

bureaucracy.

 Division of labor

 Hierarchy of authority

 Rules and procedures

 Impersonality

 Employee selection and promotion

CLASSICAL PERSPECTIVE

Bureaucratic Management

Page 6

Weber’s Forms of Authority

 Traditional authority

ois based upon custom or tradition.

 Charismatic authority

oSubordinates voluntarily comply with a leader because of his

or her special personal qualities or abilities.

 Rational-legal authority

oSubordinates comply with a leader because of a set of

impersonal rules and regulations that apply to all employees.

CLASSICAL PERSPECTIVE

Bureaucratic Management

CLASSICAL VS. BEHAVIORAL PERSPECTIVE

Focused on rational

behavior

Classical Perspective

Acknowledged the

importance of

human behavior

Behavioral Perspective

vs.

Page 7

BEHAVIORAL PERSPECTIVE

Behavioral Perspective

 Followed the classical perspective

 Acknowledged the importance of human behavior in

shaping management style

 Associated with the following scholars:

 Mary Parker Follett

 Elton Mayo

 Douglas McGregor

 Chester Barnard

Classical Perspective

Behavioral Perspective

Systems Perspective

Contingency Perspective

BEHAVIORAL PERSPECTIVE

Mary Parker Follett

Concluded that a key to effective management was

coordination.

Felt that managers needed to coordinate and

harmonize group effort rather than force and coerce

people.

Believed that management is a continuous, dynamic

process.

Felt that the best decisions would be made by people

who were closest to the situation.

Page 8

BEHAVIORAL PERSPECTIVE

Elton Mayo

Conducted the famous Hawthorne Experiments.

Concluded that productivity increased because

someone was “paying attention” to the workers.

Mayo’s work represents the transition from scientific

management to the early human relations

movement.

The Hawthorne studies found that workers were

more responsive to group involvement and

managerial attention than to financial incentives.

BEHAVIORAL PERSPECTIVE

Douglas McGregor

Proposed the Theory X and Theory Y styles of

management.

Theory X managers perceive that their subordinates

have an inherent dislike of work and will avoid it if at

all possible.

Theory Y managers perceive that their subordinates

enjoy work and that they will gain satisfaction from

performing their jobs.

Page 9

SYSTEMS THEORY/PERSPECTIVE

An approach to problem solving that is based

on an understanding of the basic structure of

systems suggested by Ludwig von Bertalanffy in 1954 and Peter Senge in 1990.

Inputs Transformation

process Outputs

Feedback

Basic Structure of Systems

According to the Systems Theory, every organisation is a large system that includes

some smaller systems such as recruitment system, production system, promotion

system, marketing system, financial system, or sale system.

The results or ‘Outputs’ of the system depends on the quality of ‘Inputs’ (resources

such as staff, technology or money) and ‘Transformation Process’ (process of

changing the inputs into the output such as production process).

Classical Perspective

Behavioral Perspective

Systems Perspective

Contingency Perspective

CONTINGENCY PERSPECTIVE

• A view that proposes that there is no one

best approach to management for all

situations.

• Asserts that managers are responsible for

determining which managerial approach is

likely to be most effective in a given

situation.

• This requires managers to identify the key

contingencies in a given situation.

Classical Perspective

Behavioral Perspective

Systems Perspective

Contingency Perspective

Some important contingencies for companies are listed below: 1.Technology 2.Suppliers and distributors 3.Consumer interest groups 4.Customers and competitors 5.Government 6.Unions

Page 10

EXAMPLE OF THE CONTINGENCY PERSPECTIVE

Joan Woodward discovered that a particular management style is

affected by the organization’s technology.

She found that financially successful manufacturing organizations

with different types of work technologies (such as mass-

production; or continuous-process) differed in the number of

management levels, span of management, and the degree of

worker specialization. She linked differences in organization to

firm performance and suggested that certain organizational forms

were appropriate for certain types of work technologies.

Woodward identified and described three different types of

technology: Small-batch

technology

Mass-production

technology

Continuous-process

technology

WILLIAM OUCHI’S THEORY Z

• Japanese approach to management described by

William Ouchi.

• Advocates trusting employees and making them

feel like an intimate part of the organization.

• Based on the assumption that once a trusting

relationship with workers is established, production

will increase.

RR-F4/Management & Operations/Support/Session 5 Lecture Notes.pdf

C O M P I L E D B Y N N 1

Using examples from your organisation, define and compare the

different roles and characteristics of a leader and a manager [P1].

Unit 4: Management and

Operations

Session 5 (LO1): Theories of Leadership (P1-part 4)

Transactional Leadership focuses on the interpersonal interactions between managers and employees.

It recognises the process such as performance appraisal, performance related pay, organizational process analysis and clarifications and job grading.

• Transactional Leaders - use contingent rewards to motivate employees. - use corrective action only when employees fail to obtain performance goals.

C O M P I L E D B Y N N

Transactional versus Charismatic Leadership

Charismatic Leadership is leadership based on the

leader's ability to communicate on a very powerful

emotional level to inspire followers.

• Charismatic Leaders

- use visionary and inspirational messages.

- rely on non-verbal communication.

- display confidence in self and followers.

- set high performance expectations.

C O M P I L E D B Y N N

Transactional versus Charismatic Leadership

C O M P I L E D B Y N N

Individual and Organizational Characteristics

Leader behavior

Effects on followers and work groups

Outcomes

• Traits •Leader establishes a vision

•Increased intrinsic motivation, achievement orientation, and goal pursuit

•Personal commitment to leader and vision

• Organizational Culture

Charismatic Model of Leadership

C O M P I L E D B Y N N

Individual and Organizational Characteristics

Leader behavior

Effects on followers and work groups

Outcomes

• Organizational Culture

•Leader establishes high performance expectations and displays confidence in him/herself and the collective ability to realize the vision

•Leader models the desired values, traits, beliefs, and behaviors needed to realize the vision

•Increased identification with the leader and the collective interests of organizational members

•Increased cohesion among workgroup members

•Increased self- esteem, self-efficacy, and intrinsic interests in goal accomplishment

•Increased role modeling of charismatic leadership

•Self-sacrificial behavior

•Organizational commitment

•Task meaningfulness and satisfaction

•Increased individual group, and organizational performance

• Traits

Charismatic Model of Leadership (cont)

TRANSFORMATIONAL VS TRANSACTIONAL LEADERSHIP

• Transformational leadership is a style of leadership

where a leader works with subordinates to identify

needed change, creating a vision to guide the change

through inspiration, and executing the change with

committed members of a group.

• It was first discussed by Downton (1989) However,

identification of these leadership types is credited to

James MacGregor Burns (1968), who distinguished

between transactional transformational leadership

C O M P I L E D B Y N N 6

TRANSACTIONAL LEADERSHIP

• Transactional leadership recognise the process such performance appraisal, performance related pay, organisational process analysis and clarification and job grading. It also and uses praise, recognition and the delegation of responsibility. In transactional Leadership process individuals become leader through the above process

• https://www.youtube.com/watch?v=ddt_IGMMOrI

C O M P I L E D B Y N N 7

7 TYPES OF TRANSFORMATIONAL LEADERSHIP (ROOKE AND TORBERT, 2005)

• Rooke and Torbert developed 7 Transformations of

Leadership Model by 25 years of extensive survey

based on consulting companies: Deutsche Bank,

Hewlett-Packard, Aviva, Volvo and worked on

thousands of Executives.

• From their research finding they proved that leaders

can transform from one type (action logic) to other type

(action logic) to another : From expert into achieves, from

individualist to strategist,etc.

C O M P I L E D B Y N N 8

https://www.youtube.com/watch?v=ddt_IGMMOrI

7 TYPES OF TRANSFORMATIONAL LEADERSHIP

1)The Opportunitist

2) The Diplomat

3) The Expert

4) The Achiever

5)The individualist

6) The Strategist

7)The Alchemist

C O M P I L E D B Y N N 9

7 TYPES OF TRANSFORMATIONAL LEADERSHIP

Action Logic Characteristics Strength

Opportunist Wins any way possible Self oriented; manipulative, “might makes right”

Good in emergencies and in sale opportunities

Diplomat Avoids conflicts, wants to belong, obeys group norms, rarely rocks the boat

Good as supportive glue within an office, helps bring people together

Expert Rules by logic and expertise. Seeks rational efficiency

Good as an individual

Achiever Meets strategic goals, Effectively achieve goals through team, juggle managerial duties & market demand

Well suited to managerial role; action and goal oriented

Individualist Interweaves competing personal and company action logic; Create unique structure to resolve gap between strategy & performance

Effective in venture and consulting role

Strategist Generates organisational & personal transformation; Exercise the power of mutual inquiry, vigilance, and vulnerability for both short and long term

Effective as transformational leader

Alchemist Generates Social transformation; Integrate material and societal transformation

Good at society wide- wide transformation 10

LEADERSHIP TEAM AND LEADERSHIP CULTURE WITHIN FIRM

• Rooke and Torbert (2005) found in seven … leadership that “ our

categories of leadership styles can be used to describe teams and

organisation as well”

• Over the long term, the most effective teams are those with a

Strategist culture, in which the group sees business challenges as

opportunities for growth

• The leader’s voyage development is not an easy one. Some people

change little in their lifetimes, some change substantially

• Those who willing to work at developing themselves and becoming

more self-aware can almost certainly evolve overtime into truly

transformational leaders

C O M P I L E D B Y N N 11

• Servant Leadership represents a philosophy in which

leaders focus on increased service to others rather

than to oneself.

• A Super Leader is someone who leads others to lead

themselves by developing employees’ self-

management skills.

• Super leaders attempt to increase employees’ feelings

of personal control and intrinsic motivation.

C O M P I L E D B Y N N

Servant and Super leadership Blanchard and Hodges (2007)

1. Listening Servant-leaders focus on listening to identify and clarify the needs and desires of a group.

2. Empathy Servant-leaders try to empathize with others’ feelings and emotion. An individual’s good intentions are assumed even when he or she performs poorly.

3. Healing They try to make themselves and others not to be disappointed in the face of failure or

suffering.

4. Awareness Servant-leaders are very self-aware or their strengths and limitations.

C O M P I L E D B Y N N

Characteristics of the Servant-Leader

5. Persuasion Servant-leaders rely more on persuasion than positional authority when making

decisions and trying to influence others.

6. Conceptualization Servant-leaders take the time and effort to develop broader based conceptual

thinking. Servant-leaders seek an

appropriate balance between a short-

term, day-to-day focus and a long-term,

conceptual orientation.

7. Foresight Servant-leaders have the ability to foresee future outcomes associated with

a current course of action or situation.

C O M P I L E D B Y N N 14

Characteristics of the Servant-Leader

8. Stewardship Servant-leaders assume that they are stewards of the people and resources they

manage.

9. Commitment to Servant-leaders are committed to people

the growth of beyond their immediate work role. They

people commit to fostering an environment that

encourages personal, professional, and

spiritual growth.

10. Building Servant-leaders strive to create a sense of

Community community both within and outside the work organisation.

C O M P I L E D B Y N N 15

Characteristics of the Servant-Leader

REFERENCES

Blanchard, K. and Hodges, P. (2007) The Servant Leader, Thomas Nelson, Inc.

Burns, J. M. (1968) Leadership, McGrawHill

Downton, J.V. (1989) Transformational Leadership in Journal of Analytical Psychology, Academic Press

Rooke, D. and Torbert, W.R. (2005) 7 Transformations of Leadership, Harvard Business Review, April Ed.

C O M P I L E D B Y N N 16

RR-F4/Management & Operations/Support/Session 6 Lecture Notes.pdf

Unit 4: Management and

Operations

Session 6 (LO2)- Leadership and

Management in different Situations (P2)

Using examples from your chosen organization, examine examples of how the role of a leader and the function of a manager apply

in different situational contexts [P2]. Apply different theories and models of approach, including situational leadership, systems

leadership and contingency [P3].

Introduction

 According to Henri Fayol every manager has four

‘Management Functions’. According to Robert House

there are four possible ‘Leadership Styles/Roles’.

 Leadership is one of the four functions for every

manager. So management and leadership are two

aspects of the job done by one person who acts as the

manager in an organisation.

 A manager’s managerial or leadership jobs can be

affected by situations inside or outside of a company.

Organisational

Situations

Different Types of Organisational Situations

 Stable situation

 In the stable situation there are no changes or very limited

changes inside or outside of the organisation.

 Slow-to-moderate changing situation

 In the slow-to-moderate changing environment there are

some noticeable changes inside or outside of the

organisation.

 Fast-changing situation

 In the fast-changing situation there are so many changes

that are happening fast inside or outside of the

organisation.

Effects of Different Organisational Situations on

the leadership or management activities

 Stable situation

 In the stable situation there are no changes or very limited

changes inside or outside of the organisation.

 In the stable situation there is no need to change or modify

the leadership styles/roles or management functions of a

manager until the situation changes noticeably.

 Slow-to-moderate changing situation

 In the slow-to-moderate changing environment there are some

noticeable changes inside or outside of the organisation.

 In the slow-to-moderate changing situation a manager

needs to make some modifications in a mid or long period

of time in her/his leadership styles/roles or management

functions to fit the new situation. 5

Effects of Different Organisational Situations on

the leadership or management activities

 Fast-changing situation

 In the fast-changing situation there are so many changes that

are happening fast inside or outside of the organisation.

 In the fast-changing situation a good manager should

make some big changes in a short period of time in her/his

leadership styles/roles or management functions to adjust

to the new situation.

Four Management

Functions

Four Management Functions

8 Source: Fayol (1916)

Four Management Functions

9 Source: Fayol (1916)

Four Management Functions

Planning

 Planning is the function of management that involves

setting objectives and determining a course of action

for achieving those objectives.

 Planning requires that managers be aware of

environmental conditions facing their organization and

forecast future conditions.

 It also requires that managers be good decision

makers.

10 Source: Fayol (1916)

http://images.flatworldknowledge.com/carpenter/carpenter-fig01_006.jpg

Four Management Functions

Organizing

 Organizing is the function of management that involves

developing an organizational structure and allocating

human resources to ensure the accomplishment of

objectives.

 The structure of the organization is the framework

within which effort is coordinated.

 The structure is usually represented by an organization

chart, which provides a graphic representation of the

chain of command within an organization.

11 Source: Fayol (1916)

Four Management Functions

Leading

 Leading involves the social and informal sources of

influence that you use to inspire action taken by

others.

 If managers are effective leaders, their subordinates

will be enthusiastic about exerting effort to attain

organizational objectives.

 To become effective at leading, managers must first

understand their subordinates’ personalities, values,

attitudes, and emotions.

12 Source: Fayol (1916)

Four Management Functions

Controlling

 Controlling involves ensuring that performance goes

according to what planned or the standards developed.

 Controlling consists of three steps, which include (1)

establishing performance standards, (2) comparing

actual performance against standards, and (3) taking

corrective action when necessary.

 Performance standards are often stated in monetary

terms such as revenue, costs, or profits but may also

be stated in other terms, such as units produced,

number of defective products, or levels of quality or

customer service.

13 Source: Fayol (1916)

Effects of Organisational Situations on the

management functions

 Slow-to-moderate changing situation

 In the slow-to-moderate changing situation a manager

needs to make some modifications in a mid or long period

of time in her/his management functions specially

planning and organising to fit the new situation.

 Fast-changing situation

 In the fast-changing situation a good manager should

make some big changes in a short period of time in ALL of

her/his management functions to adjust to the new

situation.

Leadership Styles

/Roles

 Robert House (1996) suggested path-goal theory of

leadership. The theory makes predictions about what type of leader behavior will be effective under which

circumstances. The theory identifies four styles leaders

may adopt.

 Each of these styles can be effective, depending on:

1. the characteristics of employees (such as their ability

level, preferences, locus of control, achievement

motivation) and

2. characteristics of the work environment (such as the

level of role ambiguity, the degree of stress present in

the environment, the degree to which the tasks are

unpleasant).

Path-goal theory of Leadership Styles

Source: House (1996) 16

Path-goal theory of leadership identifies four styles

leaders may adopt:

 Directive style

 Supportive style

 Participative style

 Achievement-oriented style

Path-goal theory of Leadership Styles

Source: House (1996) 17

 Directive leaders provide specific directions to their

employees. They lead employees by clarifying role

expectations, setting schedules, and making sure that

employees know what to do on a given workday. The

theory predicts that the directive style will work well when

employees are experiencing role ambiguity on the job.

 Supportive leaders provide emotional support to

employees. They treat employees well, care about them

on a personal level, and are encouraging. Supportive

leadership is predicted to be effective when employees

are under a lot of stress or when they are performing

boring and repetitive jobs. When employees know exactly

how to perform their jobs but their jobs are unpleasant,

supportive leadership may also be effective.

Path-goal theory of Leadership Styles

Source: House (1996) 18

 Participative leaders make sure that employees are

involved in making important decisions. Participative

leadership may be more effective when employees

have high levels of ability and when the decisions to be

made are personally relevant to them.

 Achievement-oriented leaders set goals for employees

and encourage them to reach their goals. Their style

challenges employees and focuses their attention on

work-related goals. This style is likely to be effective

when employees have both high levels of ability and

high levels of achievement motivation.

Path-goal theory of Leadership Styles

Source: House (1996) 19

Leadership Styles in different Situations

Source: House (1996) 20

RR-F4/Management & Operations/Support/Session 7 Lecture Notes.pdf

Unit 4: Management and

Operations

Session 7 (LO2)- Applying the Leadership and

Management Theories (P3)

Using examples from your chosen organization, apply different

theories and models of approach, including situational

leadership, systems leadership and contingency [P3].

Application of

Situational

Leadership

Situational Leadership

 A contingency approach to leadership is Kenneth

Blanchard and Paul Hersey’s Situational Leadership

Theory which argues that leaders must use different

leadership styles depending on their followers’

development level.

 According to this model, employee readiness (defined

as a combination of their competence and commitment

levels) is the key factor determining the proper

leadership style.

 The model argues that to be effective, leaders must use

the right style of behaviors at the right time in each

employee’s development. It is recognized that followers

are key to a leader’s success.

3Blanchard and Hersey (1969)

Situational Leadership

Follower

Readiness Level

Competence

(Low)

Competence

(Low)

Competence

(Moderate to High)

Competence

(High)

Commitment

(High)

Commitment

(Low)

Commitment

(Variable)

Commitment

(High)

Recommended

Leader Style Directing Behavior

Coaching

Behavior Supporting Behavior

Delegating

Behavior

Blanchard and Hersey (1969)

Application of

Systems Theory

Systems Theory/Perspective

An approach to problem solving that is based on an understanding

of the basic structure of systems suggested by Ludwig von Bertalanffy in 1954 and Peter Senge in 1990.

Inputs Transformation

process Outputs

Feedback

Basic Structure of Systems

According to the Systems Theory, every organisation is a large system that

includes some smaller systems such as recruitment system, production system,

promotion system, marketing system, financial system, or sale system.

The results or ‘Outputs’ of the system depends on the quality of ‘Inputs’

(resources such as staff, technology or money) and ‘Transformation Process’

(process of changing the inputs into the output such as production process).

Regarding Management Functions in system theory, a manager should plan for

an intented ‘Output’ and organise required resources for the ‘Inputs’ and lead the

staff during the ‘Process’ and control the activities by providing ‘Feedback’. 6

One of the Applications of System Theory:

Production System

CAD = Computer added design

(using computer for designing

products)

Application of

Contingency

Theory

Contingency Theory/Perspective

• A view that proposes that there is no one best approach to

management for all situations. It is pioneered by Lawrence

and Lorsch in 1967.

• According to Contingency Theory managers are

responsible for determining which managerial approach is

likely to be most effective in a given situation.

• This requires managers to identify the key contingencies in

a given situation.

• According to the Contingency Theory, the External

environment (customer’s expectations, regulations, degree

of competition) and internal environment (management

team, corporate strategies, internal capabilities) changes so

Management Functions and Leadership Styles/Roles need

to be changed accordingly to adjust to the new situation. 9 9

Example of the Contingency Perspective

Joan Woodward in 1958 discovered that a particular

management style is affected by the organization’s technology.

She found that financially successful manufacturing organizations

with different types of work technologies (such as mass-

production; or continuous-process) differed in the number of

management levels, span of management, and the degree of

worker specialization. She linked differences in organization to

firm performance and suggested that certain organizational forms

were appropriate for certain types of work technologies.

Woodward identified and described three different types of

technology:

Small-batch

technology

Mass-production

technology

Continuous-process

technology

Application of

Chaos Theory

Definition of chaos

 Chaos is complete disorder and confusion.

 Chaos can be defined as a “complex system whose

behaviour is so unpredictable as to appear random,

owing to great sensitivity to small changes in

conditions”.

Definition of Chaos Theory

 Chaos Theory is the science that determines order in the randomness and unpredictability that exist in the natural and social systems.

 Chaos theory describes the unpredictability of systems but it try to find order in disorder.

 In chaos, management functions or leadership roles/ styles may be disrupted but Chaos Theory help managers and leaders by reducing the chaos.

Examples (applications):

 Changes in sales in different months (finding trend in chaotic sales)

 Number of accidents in the work place in different times (identifying pattern in seemingly random accidents)

 Changes in customer satisfaction during the time 13

 Leadership in different situation: Business environment outside of an organisation is chaotic because of constant changes in customer’s expectations, competitors' strategies and products, government’s regulations or suppliers’ quality. These environmental chaos need flexibility in leadership styles to find order in these chaos.

 Management functions in new or unfamiliar situations: Even inside of an organisation there are some chaos because of unpredicted accidents, staff turnover (staff leaving company), problems with machineries, and conflicts between different departments. Managers need to adjust their managerial functions based on these unwanted but unavoidable chaos inside of the organisation.

Applications of Chaos Theory

 An organization is a classic example of a nonlinear system (i.e., a system in which minor events have the potential to set off grave consequences or chain reactions, and major changes may have little or no effect on the system whatsoever).

 In order to exploit the chaotic quality of an organization, one needs to try to see the organizational shape that emerges from a distance. Instead of pinpointing causes in the organization for organizational problems, the company is better served, according to chaos theory, by looking for organizational patterns that lead to certain types of behavior within the organization.

Applications of Chaos Theory

Application of

Management by

Objectives

Management by Objectives

 Management by objectives (MBO) is a management model that aims to improve performance of an organization

by clearly defining objectives that are agreed to by both

management and employees.

 According to the MBO, having a say in goal setting and

action plans should ensure better participation and

commitment among employees, as well as alignment of

objectives across the organization.

 The term was first outlined by management guru Peter

Drucker in 1954 in his book "The Practice of Management."

Putting MBO into Practice

MBO calls for five steps that organizations should use to put

the management technique into practice.

1. The first step is to either determine or revise organizational

objectives for the entire company.

2. The next step is translating the organizational objectives to

employees. Drucker used the acronym SMART (Specific,

Measurable, Acceptable, Realistic, Time-bound) to express

the concept.

3. Step three is stimulating the participation of employees in

setting objectives.

Source: Drucker (1954)

Putting MBO into Practice

4. The next to last step is to monitor the progress.

5. Lastly, progress is evaluated and rewarded. This step

includes honest feedback on what went well and what did

not.

Source: Drucker (1954)

Application of Management by Objectives

 Every organisation has some objectives. The

organisational objectives can be achieved more

effectively and efficiently by using Management by

Objectives because employees would participate in

development and implementation of the organisational

objectives.

 Employees would be more interested in

implementation of those objectives that are suggested

by employees.

RR-F4/Management & Operations/Support/Session 8 Lecture Notes.pdf

Unit 4: Management and

Operations

Session 8 (LO3): Approaches to

Operations Management (P4)

Using examples from your chosen organisation, explain the key

approaches to operations management and the role that leaders

and managers play [P4].

Introduction

 The fourth question (P4) in this assignment has two

major sections. Before talking about these two main

sections, you may start your answer by defining ‘Operations

Management’. Then, you need to cover both of the main

following sections in your answer to P4:

1. Key approaches to operations management: Analyze the

six approaches to operations management that includes:

Total Quality Management, Just-in-Time, Continuous

Improvement, Six Sigma, Lean production, and Queuing.

2. Roles of leaders and managers in operations

management: Discuss separately roles of leaders in

operations management as well as roles of managers in

operations management.

What is

Operations

Management

Definitions of Operations Management

 Operations management focuses on carefully

managing the processes to produce and distribute

products and services. Major, overall activities often

include product creation, development, production and

distribution.

 Operations management is concerned with

converting materials and labour into goods and

services as efficiently as possible to maximize the

profit of an organization.

Scope of Operations Management

 Operations management is chiefly concerned with

planning, organizing and supervising in the contexts of

production, manufacturing or the provision of services.

 A great deal of focus is on efficiency and effectiveness of

processes. Therefore, operations management often

includes substantial measurement and analysis of internal

processes.

 Related activities include managing purchases, inventory

control, quality control, storage, logistics and evaluations of

processes.

Key Approaches

to Operations

Management

Six Approaches to Operations Management

 Total Quality Management (TQM)

 Just-in-Time (JIT)

 Continuous Improvement (Kaizen)

 Six sigma

 Lean production

 Queuing theory

Six Approaches to Operations Management Total Quality Management (TQM)

 Total Quality Management is a system of management based on the principle that every member of staff must be

committed to maintaining high standards of work in every

aspect of a company's operations.

 In a TQM effort, all members of an organization participate

in improving processes, products, services, and the culture

in which they work. TQM suggested by William Deming.

 TQM is considered a customer-focused process and aims

for continual improvement of business operations. It strives

to ensure all associated employees work toward the

common goals of improving product or service quality, as

well as improving the procedures that are in place for

production. 8

Six Approaches to Operations Management Just-in-Time (JIT)

 Just-in-time (JIT) is an inventory strategy that companies

employ to increase efficiency and decrease waste by

receiving goods only as they are needed in the production

process, thereby reducing inventory costs. This method

requires producers to forecast demand accurately.

 JIT refers to the production of goods to meet customer

demand exactly, in time, quality and quantity, whether the

`customer' is the final purchaser of the product or another

process further along the production line.

 Toyota realised that JIT would only be successful if every

individual within the organisation was involved and

committed to it, if the plant and processes were arranged for

maximum output and efficiency, and if quality and production

programs were scheduled to meet demands exactly. 9

Six Approaches to Operations Management Continuous Improvement (Kaizen)

 Continuous improvement, sometimes called Kaizen or

continual improvement, is the ongoing improvement of

products, services or processes through incremental and

breakthrough improvements.

 To support continuous improvement, business professionals

continually examine their processes to discover and

eliminate problems. Typically, they accomplish this by

making small changes rather than implementing a

large-scale alteration.

 By focusing on making things better without finding blame,

project teams take actions to reduce defects, remove

activities which provide no value and improve customer

satisfaction. 10

Six Approaches to Operations Management Six Sigma

 Six Sigma is a quality-control program developed in 1986

by Motorola that emphasizes cycle-time improvement

(The period required to complete one function, task or job)

and the reduction of manufacturing defects (faulty or

imperfect product) to a level of no more than 3.4 per

million.

 Practitioners of Six Sigma are those business people who

use statistics, financial analysis and project management to

achieve improved business functionality.

 The Six Sigma method has five steps called DMAIC:

define, measure, analyze, improve and control.

Six Approaches to Operations Management Lean Production

 Lean Production is about doing more with less by

employing 'lean thinking.' Lean manufacturing involves

never ending efforts to eliminate or reduce 'muda'

(Japanese for waste or any activity that consumes

resources without adding value) in design, manufacturing,

distribution, and customer service processes.

 Lean production determines what activities or

processes add value by reducing other aspects such as

lessening the production of a certain kind of product that

gives less value and using the resources to produce more

of another, while at the same time lessening waste.

 Value adding is adding some features to a product or

service for which the buyer is prepared to pay extra. 12

Six Approaches to Operations Management Queuing Theory

 Queuing theory deals with problems which involve queuing

(or waiting). Queuing theory is used to develop more efficient

queuing systems that reduce customer wait times and

increase the number of customers that can be served.

 Queuing theory examines every component of waiting in

line to be served, including the arrival process, service

process, number of servers, number of system places and

the number of "customers" (which might be people, data

packets, cars, etc.).

 Real-life applications of queuing theory include providing

faster customer service, improving traffic flow, shipping

orders efficiently from a warehouse and designing

telecommunications systems such as call centres. 13

Roles of Leaders and

Managers in Operations

Management

Roles of Leaders in Operations Management

1. Operations specially in manufacturing companies can be

difficult and sometime dangerous, so, a good operations

leader can help the operations activities by inspiring the

workers and technicians to overcome the work-related

difficulties and to stay safe in the workplace.

2. Leadership capability of an operations manager would

encourage engineers to design the most innovative

products or services that are appealing for customers.

3. An operation leader motivates workers to care about the

quality of the jobs they are doing and the quality of the

products they are producing or services that they are

providing.

Roles of Leaders in Operations Management

4. A good operation is an effective operation that achieves

the intended objective. Operations managers in their

leadership roles can motivate employees to do their

best to fulfil the operation’s objectives.

5. Efficiency is a crucial issue in operations management. An

operation leader convinces staff to use the organisational

resources (financial, human, physical, information, and

technological resources) in the best possible way with no

waste.

6. An operations leader encourages the staff to stay positive

and hopeful when the operations or the company are

not doing well for a period of time.

Roles of Managers in Operations Management

1. Operations managers are responsible for planning and

supervising in the contexts of production, manufacturing

or the provision of services.

2. Operations managers acquire, develop and deliver

goods to clients based on client wants and the abilities of

the company.

3. Operations managers improve the efficiency of the

operations by studying the use of raw materials and

ensuring minimal waste occurs. Managers utilize numerous

formulas such as the economic order quantity formula to

determine when and how large of an inventory order to

process and how much inventory to hold on hand.

Roles of Managers in Operations Management

4. Operations managers are involved in coordinating and

developing new processes while re-evaluating current

structures.

5. Organizing and productivity are two other key

responsibilities of an operations manager, and the work

often requires versatility from the operations manager.

6. Operation managers have the major role in controlling the

operations to ensure the quality and safety of the work

done by staff or machineries in every operation process.

RR-F4/Management & Operations/Support/Session 9 Lecture Notes.pdf

Unit 4: Management and

Operations

Session 9 (LO3): Importance of Operations

Management (P5)

Using examples from your chosen organisation, explain the

importance and value of operations management in achieving

business objectives [P5]

Introduction

 The fifth question (P5) in this assignment has three

major sections. You should cover all of the following three

sections in your answer to P5:

1. Common Business Objectives: First briefly define five

main and common business objectives of your chosen

organisation.

2. Importance of operations management: Then discuss six

crucial functions of operations management that makes

operations management become important.

3. Roles of operations management in achieving business

objectives: Finally, you need to evaluate importance of

operations management in achieving main business

objectives. 2

Business

Objectives

To operate in an ethical & sustainable manner

Common Business Objectives

To Maximise Profit

To Survive To grow in size

To increase market share

To increase sale

To gain a good

reputation

to maximise customer

satisfaction

Common Business Objectives

Objective What does it mean?

To survive At first it is important that the business is kept alive. It might not be

making any profit, but the costs aren’t too high either.

To increase sale Businesses often want to increase the amount of money that they receive

from selling their product to the customers.

To grow Over time, a business will look to expand. It might do this by opening new

branches, or by broadening it’s product range.

To satisfy

customers

Satisfied customers keep buying from the company and they recommend

the company to other people. So if the businesses want to increase the

number of customers they need to satisfy their customers.

To maximise

profits

To make as much profit as possible, which is the reward for taking risks.

To gain a good

reputation

Word of mouth is one of the most powerful forms of advertising for small

businesses, and it is important that customers think highly of their

business so they will return, and tell others to visit too.

To increase

market share

All of the businesses in a particular market can claim a percentage of the

sales in that market. Many businesses aim to increase the percentage of

sales that they are responsible for.

To operate in an

ethical and

sustainable

manner.

It is important that businesses respect both the environment and the

society in which they operate. This means they should always pay fair

wages, provide good working conditions, and try to reduce pollution and

waste. 5

Most common Business Objectives

Although there are many business objectives, five objectives

are the most common ones for almost all types of business

including:

 To survive

 To increasing sale

 To maximizing profit

 To satisfying customers

 To grow

Importance of

Operations

Management

Importance of Operations Management

Operations Management is important because of its six

crucial functions that each of them help to achieve business

objectives. The six crucial functions are as follow :

 Control and Distribution Systems

 Transformation of raw material into finished goods/services

 Process design

 Capacity management

 Logistics and inventory management

 Scheduling

Importance of Operations Management

Control and Distribution Systems

 Operations Management is important because of setting

and running required ‘Control Systems’ such as quality

control systems to ensure top quality products/services.

Business Objectives cannot be achieved without proper

control systems.

 Operations Management is responsible for the crucial task

of delivering the customer’s requested products by effective

and efficient ‘Distribution System’. The company would

not be able to sell even one product without existence of a

reliable ‘Distribution System’.

Importance of Operations Management Transformation of raw material into finished goods

 No product or service would be exist if Operations Management does

not ‘transform raw materials into finished goods or services’ that

customers asked for them.

 To put it simply, no transformation process means no goods or services,

and no goods means no sale, and no sales mean no survival for the

organisation.

Process design

 All the tasks inside of any organisation done by variety of processes

such as recruitment process, procurement (purchase) process,

production process, or distribution process.

 Nothing can be done and no objectives can be achieved without having

required processes.

 This is the job of Operations Management to design the most

efficient and effective processes to reduce waste and increase the

quality and speed of production and distribution.

Importance of Operations Management

Capacity management

 Capacity management is about planning and deciding

how much should be produced to satisfy customers and at

the same time not wasting any unused capacity in existing

machineries.

 Operations Management is important because if the

capacity is not managed properly the results would be

either under-production (producing less than what

customers want) or over-production (producing much

more than what customers want). Each of these two

mistakes can be very costly and company may not survive.

Importance of Operations Management

Logistics and inventory management

 One of the responsibility of Operations Management is

‘Logistics’ that is about transporting raw materials into

the company and transporting the finished goods out of

the company. Nothing can be produced if the logistics does

not bring the raw materials or parts. So no logistics means

no sales.

 Inventory management is the practice overseeing and

controlling of the ordering, storage and use of components

that a company uses in the production of the items it

sells. Inventory management is also the practice of

overseeing and controlling of quantities of finished products

for sale.

Importance of Operations Management

Scheduling

 Scheduling is about planning what should be done, when

should be done and how should be done in every process

and every project. Operations Management is in charge of

scheduling.

 Operations Management is important in achieving business

objectives because without proper scheduling the

company may not achieve any of its objectives or even if it

achieves the objectives they would not be efficient

anymore.

Importance of

Operations Management

in achieving objectives

Operations Management & achieving objectives

 Operations Management is important in ‘increasing sale’

by producing high quality product/services with the lowest

costs to be affordable for every potential customers.

 One of the business objectives is ‘to survive’, Operations

Management helps to achieve this objective by reducing

costs (being more efficient and eliminating waste) and

producing quality products/services that would always have

customers.

 Another business objective is ‘to satisfy customers’.

Operations Management is important in gaining this

objective by designing a good product/service, produce the

product at the highest quality and distribute it onetime to

the customers.

Operations Management & achieving objectives

 Operations management is concerned with converting

materials and labour into goods and services as efficiently

as possible to maximize the profit of an organization.

 Operations management teams attempt to balance costs

with revenue to achieve the highest net operating

profit possible.

 Lean production as one of the approaches to operations

management provides tools and processes to eliminate

waste from the manufacturing process resulting in

improved efficiency, effectiveness, and profitability.

 Operations Management is important in helping the

company ‘to grow’ by attracting more customers due to

having the best designed products with low costs and fast

production. 16

RR-F4/Marketing Essentials/Module Booklet/Harvard_Referencing.pdf

@ICTM PAGE 1 OF 9

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Harvard Referencing and Citation Guidelines

Referencing:

This is a method used to demonstrate to the assessors that a learner has conducted a thorough

and appropriate literature search. Equally, referencing is an acknowledgement that you have

used the ideas and written material belonging to other authors in your own work. As with all

referencing styles, there are two parts: Citing and the Reference List.

Referencing list format:

points or numbering)

PRINTED/PUBLISHED SOURCES

Book: by one Author

@ICTM PAGE 2 OF 9

Reference List: Barker, R., Kirk, J. and Munday, R.J. (1988) Narrative analysis. 3rd ed. Bloomington: Indiana University Press. In text reference for the above examples:

Book: Translated Author (surname), Initials. (Year) Title of book. Translated from (language) by (name of translator) Place of publication: Publisher.

Canetti, E. (2001) The voices of Marrakesh: a record of a visit. Translated from German by J.A.Underwood. San Francisco: Arion.

Multiple Books by same Author published in the same year Author (surname), Initals.(Year a/b/c) Title of book. Place: Publisher.

Soros (1966a) mentioned in his …………… According to Soros (1966b) modern literature……….

@ICTM PAGE 3 OF 9

Chapter of edited book or Secondary reference for Book and Journal

When an author refers to another author’s work and the primary source is not available

References List:

N.B. You are advised that secondary referencing should be avoided wherever possible and you should always try to find the original work

Journal Articles

Boughton, J.M. (2002) The Bretton Woods proposal: an in-depth look. Political Science Quarterly, 42(6), pp.564-78.

Foreign Journal

Author (surname), initials. (Year) Title of article [square brackets] Journal title Edition Page number Language of translation (round brackets) References List:

Caballero, D. (2003) [Policing without borders] Cambi16. 1(668) pg. 24 (in Spanish)

Report

Author (surname), initials. (Year) Title of report (underline or italicise) Publisher Report code and number (in brackets) References List:

Dearing, R. (1996) Review of qualifications for 16 – 19 year olds: quality and rigour in A Level examinations. London: SCAA Publications (COM/96/467)

@ICTM PAGE 4 OF 9

Annual Report:

Corporate author, Year of publication. Full title of annual report (if available), Place of Publication: Publisher.

Hounsome, I. W. (2001) Factors affecting the design and performance of flexible ducts in trench reinstatements. Unpublished Ph.D. thesis. Napier University.

Newspaper

Article with author

Author (surname), initials. (Year) Article Title (underline or italicise) Name of Newspaper Date (day, month, year) Page number References List:

Ward, L. (2004) Diploma plan to reward lower and higher abilities. The Guardian.18th February, p.4.

Article without an author

Title of publication Year of publication (in brackets) Title of article (underline or italicise) Day and Month Page number References List:

The Guardian (2004) HSBC CEO has come down at last. 23rd November, p. 10.

@ICTM PAGE 5 OF 9

ELECTRONIC SOURCES

Electronic Book (e-book)

Author (surname), initials. (Year) Title of book (underline or italicise) Name of e-book supplier [Online] Available at: URL (Date accessed) References List:

Articles in Electronic Journal

Haliday, J. (2004) 'Ford dealers test custom cable ads', Advertising age,75 (42), pg. 6. Proquest [Online]. Available at: http://proquest.umi.com/ (Accessed: 23 November 2004).

Article in Internet Journal Database

Lloyd, J. (2001) Blessed are the pure in heart: globalisation. New Statesman, 23 April [Online]. Available at: http://www.findarticles.com/p/articles(Accessed: 23 November 2004).

Online Material in the Internet without Date

Author (surname), initials. (Year) Title of article (underline or italicise) [Online], issue [Online] Available at: URL of web page (Date accessed).

References List:

Lloyd, J. (No Date) Blessed are the pure in heart: globalisation [Online]. Available at: http://www.findarticles.com/p/articles (Accessed: 23 November 2004).

Online Material from Internet without Author’s Name

Name of the Organisation, (Year) Title of article (underline or italicise) [Online] Available at: URL of web page (Date accessed).

References List: Marks & Spencer (2010) Marks and Spencer’s Corporate Strategy [Online]. Available at: http://www.m&s.co.uk/corporate/ (Accessed: 23 November 2004)

@ICTM PAGE 6 OF 9

Images from the Internet

Author (surname), initials. (Year) Title of image (underline or italicise) [Online image] Available at: URL (Date accessed) References List:

Marshall, J. (2000) Cathedral clock. [Online image]. Available at: http://www.westminstercathedral.org.uk/art/art_cathclock.html (Accessed 23 November 2004).

OTHER SOURCES

Computer Programme

References List:

Sanders, B. and William, B. (2001) Java in 2 semesters. (version 2) [computer programme] Microsoft Inc. New York.

Atlas

As for books, using the title page to find the information

References List:

The times atlas of the world (2004) London: Times Books.

Video / Film

Title of programme/film (underline or italicise) Year of distribution (in brackets) Director [Videocassette] Place of distribution: distribution company

References List

All about Eve (1977) Directed by Joseph Mankiewiez [Film]. United States: Twentieth Century Fox.

@ICTM PAGE 7 OF 9

Television programme Title of programme (underline or italicise) Year of publication (in brackets) Name of channel Date of transmission (day/month/time)

References List

Coronation Street (2004) ITV1, 25 November. 19.00hrs.

Audiocassette/CD/DVD

Author (if available, if not use title first) Year of publication (in brackets) Title of recording (underline or italicise) [Audiocassette] Place of publication: publisher. References List

Buenos: world Spanish (1995) [Audiocassette or CD or DVD]. London: BBC Books.

QUOTATIONS AND CITING INSIDE THE TEXT

You can incorporate references and quotations in a number of ways. The following examples use the Harvard Referencing.

Short quotations of a sentence or two are enclosed with quotation marks (“…”) and included in the main text.

Short Quotation

In this example, you are making a direct quote. Up to two lines can be included in the body of the text and must include the page number.

Smith (2003, p. 11) states that “Harvard referencing has to be done accurately”

@ICTM PAGE 8 OF 9

Longer Quotation

This should be indented in a separate paragraph. If part of the quotation is omitted, then this can be indicated by three dots.

Citations (inside the text)  If the originator’s name occurs naturally in the sentence, the year of publication

should follow in brackets. Example

Smith (2003) found that…or, In a recent study Smith (2003) argued that…

 If the author’s name would not naturally be included in the sentence add the author’s

name and year of publication in brackets i.e. Example

Management theories have become much more diverse (Anderson, 1996)

 For publications by two authors:

Example

In a recent study (Smith & Jones, 2003) it was argued that…

 If you are referring to a particular page or section of a work and the author’s name

would naturally be included in the sentence the date and page numbers follow in brackets i.e.

Example

In a recent study Smith (1996, p.26) argued that….

@ICTM PAGE 9 OF 9

 If the author’s name will not normally be included in the sentence all information is given in brackets i.e.

Example

In a recent study (Smith, 1996, p.26) it was argued that…

 In cases where the name of the author cannot be identified, the item should be referred to by title:

Example

Figures in a recent survey (Tourism trends, 2003. p. 12) showed that…

 In cases where the date of an item cannot be identified, the item should be cited:

Example

The earliest report (Smith, no date, p. 231) showed that…

 If the author and date are unknown:

Example

 When you refer to a corporate publication e.g. a company report, use the Company

Name: Example

A survey (Tourism trends, no date) showed that…

The recession affected………..(Hanson Trust plc, 1990)

RR-F4/Marketing Essentials/Module Booklet/Sample Marketing Plan.pdf

Sample Marketing Plan

1.0 Executive Summary

Mobile News Games LLC (MNG) develops mobile games relating to current news events. This marketing plan illustrates our market segments and the strategies we are employing to get customers and create a solid revenue stream. We are not just any mobile game developer. Our unique focus of creating games with a news twist gives us an advantage over our competitors by giving customers a new outlet to enjoy mobile games. This fills a read need of not just traditional gamers but expands our reach to people who would normally not play mobile games yet are amused by the comical angle we use.

We will fund development of our own games by providing consulting services to create similar games for corporations who are looking to create mobile games for promotional purposes. These consulting assignments will come from advertising sponsorship relationships that we will establish with companies who are interested in embedding their brand and offers inside our other games and would also like something more custom that they can offer as their own game. In the first 3 years of the business, we expect consulting to constitute a large portion of our revenue stream.

1.1 Vision

Our vision is to provide people with a brief escape of fun over the course of their normal day. We do this by providing them with timely interactive games that they can access on their mobile devices - games that are easy to play and have some connection with current pop culture news.

MNG leverages our team's software development experience to create timely games quickly. Our marketing challenge is to attract visibility quickly and we intend to accomplish this by leveraging a multi-pronged approach that involves social media, email marketing and search engine optimization strategies to gain market share. As we gain traction in the marketplace, word of mouth will lift our game downloads significantly.

1.2 Objectives

1. Generate over $400,000 in sales by the end of year 1.

2. Increase sales by 100% by the end of year 2.

3. Land 4 custom consulting game development projects within 12 months.

2.0 Target Markets

Our ideal customer is between the ages of 13 and 25 who enjoys playing video games and has a mobile phone that allows applications to be downloaded, such as the iPhone, Android or Blackberry. They often have an Xbox, Wii, Playstation or other TV-based video game unit at home. They may also have a portable gaming unit such as the DS/DSi and other portable gadgets such as an iPod.

Customers are typically single and male and own or have access to a home computer, PC or Mac. They have a wide range of disposable income. Some are teenagers living at home, others are college students or those who have joined the workforce in the last 5 years.

Our game design consulting customer is the VP of marketing or equivalent position of a medium to large organization who is looking for creative promotional methods for their products and services.

2.1 Market Definition and Segmentation

We target two segments: mobile game users and organizations that want to reach them. In both of these segments, customers are computer and mobile phone savvy and enjoy creative experiences.

1. Mobile Game Users

There are two types of customers that define the demographic of mobile gamers: teens (including pre-teens) and young adults, which for the purposes of this marketing plan will include teenagers age 18 and above as they are considered young adults by the general population as well as by the law. The primary difference between the two demographic segments is who provides the money for game purchases.

Free mobile games:

 We offer trimmed back versions of our games for free so that users can get a taste of the full game without committing any money up front.>

 Some features of free versions are disabled and advertising is displayed in some strategic locations within the game so that users are not bothered or distracted by the ads. For example, a

http://www.morebusiness.com/marketing-plan-pro

soda company may pay for a sponsorship and we might embed their name as a clickable (tappable) billboard that appears as if it is part of the game itself.

Paid mobile games:

 Our paid mobile games contain a broader set of features. The price range is between $1.99 and $4.99 in order to create very low price resistance for customers.

 Paid games are also monetized via clickable (tappable) ad sponsorships embedded within the games.

Games are available via instant download on their appropriate mobile platform (i.e., Apple's Appstore for the iPhone).

2. Organizations That Want to Reach Youth and Young Adults

Additionally, there is typically one type of customer who purchases custom mobile game development services: VP of Marketing or Chief Marketing Officer. Their intent is to promote their brand and products to the demographic that overlaps with mobile game users.

2.2 Target Market Segment Strategy

Our strategy focuses on developing an initial set of libraries containing game attributes that can be combined to create new games. Upon launching the first set of games, we will stay in regular contact with our customers via numerous online methods, including social media and email marketing. After creating these libraries and games, we will be able to market fast-turnaround consulting services to organizations who would like their own promotional games.

2.3 Target Market: Mobile Game Users

Our mobile games have a timely connection to current news events. We release new games within two weeks of major news stories. For example, if a politician is involved in a scandal, we can leverage one of our current game architectures and customize it with the names of people involved in the scandal and even make a comical interactive spoof out of events. If a celebrity makes a foolish comment, we access our library of features to put together a game that pokes fun at the celebrity. The mobile game user market enjoys interacting with games that give them a sense of power and excitement, allowing them in some way to live vicariously through the game.

2.3.1 Needs and Requirements

Mobile game users get tired of games quickly and are constantly looking for new games to play. With the plethora of news events always in circulation, we will target the news media so they discuss games related to the stories they are covering. The games we develop will target stories that are covered by the types of media outlets this demographic consumes.

The users in this segment also has limited financial capacity. Teens typically get their money to make game purchases from their parents, which can be in the form of gifts or allowances, or from low paying jobs. Older teens and young adults also have limited financial capacity yet choose to spend part of their disposable income on games as one of their sources of entertainment.

Very frequently, these customers talk to each other about which games they enjoy, including strategies for playing and winning. They also participate in online forums and discussion groups to gather tips and other information to help them play or to find new challenges. Additionally, they enjoy being listed as the "high score" when there is a public setting available for players. We intend to offer this public setting by allowing the customer to upload their score to our web site for each game. The highest scores will be posted, giving the player worldwide "bragging rights". As a result, the word of mouth potential for timely games is explosive.

2.3.2 Distribution Channels

iPhone games are distributed through the Appstore which is currently controlled by Apple. One of the obstacles we have to overcome is the speed with which Apple approves applications for downloading, which will be important for us since our games have a time sensitive nature to them as they will be popular as long as a news story is in circulation.

Google's Android offers an open source model so they will likely surpass the iPhone in the number of applications available soon. This also eliminates the need for review and allows us to post new applications quickly. As more applications come out for this device, it will gain marketshare. We want to be positioned so that we provide excellent games for this community.

Blackberry applications are controlled by Blackberry through Blackberry App World. Their users tend to be older and more focused on business uses for their mobile devices. Because of this, we will not focus our initial efforts on Blackberry. However, we do have the expertise to build Blackberry applications and will create custom games for this device for consulting clients who would like them.

2.3.3 Competitive Forces

There are many mobile game developers. However, few are actual companies. Most games are developed by one person who does not have the marketing savvy to integrate advertising sponsorships into their games as we have outlined in this marketing plan. Our unique twist on the types of games is also an advantage because we will not have to spend as much time and energy thinking of the game themes - the news of the day will provide that fodder so our efforts can be concentrated on developing that real-life story into a game.

2.3.4 Communications

We will leverage social media and word of mouth for the vast majority of our marketing using platforms such as Twitter, Facebook, Orkut and MySpace. These platforms are widely used by the customers in our demographic market. We will make announcements via regular tweets and updates to our fan page on Facebook.

The newsworthy component of our mobile games also makes it enticing for traditional media to publicize a game that is related to a current news story.

We will also use our email marketing list which is comprised of people who have expressed interest in knowing when we release new games. We have segmented our email list so that we can send appropriate emails to media and different ones to actual gamers, our customers.

2.3.5 Keys to Success

Each of our postings to social media sites will include a trackable link so we know how many people click on each post. Using online tools like link redirectors (i.e., bit.ly, tr.im and others), we can also see how many of readers and followers repost or forward such links. We will also include trackable links within our email marketing messages.

Those who click to find more information about a game will be directed to landing pages, which are web pages that contain more information about a specific game, including details and links to download the games. These landing pages will be optimized for search engines (we have SEO, search engine optimization, expertise) so that when Internet users search on various keywords, our pages will rank highly in their search results.

Using online analytics tools, we will be able to see how many people click on various links in our media campaigns to go to the landing pages and how many click to download each game. However, online clicks cannot track users who use their mobile phone to download the apps directly, which may comprise the bulk of our downloads. For those, tracking of downloads is provided by the platform such as Appstore.

2.4 Target Market: Organizations Who Want to Reach Youth and Young Adults

Mobile game users consist of young people. Since the youth and young adult demographic is so large, it is also very lucrative. There are countless products targeting this demographic, from soda manufacturers to clothing designers to hair product companies. This segment can also consist of recruiters, which can be for military service or other jobs. Companies who already spend millions of dollars on marketing to this group are regularly looking for newer, more creative ways to reach this market to reinforce their brand and sell products.

2.4.1 Needs and Requirements

Organizations who want to reach males (and females, though it is a smaller proportion of our defined customer base) between 13 and 25 realize that this group has a lot of spending power. This age group is not yet used to saving money so they typically spend a lot of what they earn. Vice Presidents and Chief Marketing Officers of these organizations want to reach this market early and need to do so in catchy, creative ways.

Much to the dismay of an older generation, teens and young adults are reading less and spending more time in front of a screen, whether it be television, a computer or a mobile phone with a variety of applications. The VP or CMO needs to reach their target market where they hang out. They typically have large budgets to spend on marketing and are not afraid to try new things, as long as they show results.

The typical tenure of a VP or CMO is about 3 years so there is a good deal of industry churn. This is a good thing for us in the sense that when a senior executive like this leaves to go to another company and they have had a good experience with our products and services, they are likely to hire us to create similar results for them in their new position.

Our job is to make them look good to their superiors by getting them more entrenched with the demographic they are trying to reach.

2.4.2 Distribution Channels

Reaching senior marketing executives is typically done through a variety of means. Since we have limited resources and need to manage our finances very effectively, we will focus on two: advertising and networking. The advertising will primarily be online via search engine ads so we can see the results within days instead of not knowing whether a print ad has any effect. We have identified 4 trade shows and 3 conferences that these executives typically attend over the course of a year. Part of our marketing plan is to attend these events to network with these potential buyers. We also will submit responses to calls for papers to be speakers at some of the events when possible.

2.4.3 Competitive Forces

As with the mobile game user segment, there are a lot of software developers targeting organizations to build custom games. Some are developing games overseas at lower costs. Even some of the larger domestic companies outsource portions of their game development. In order to keep up with pricing pressures, we have established ties with two overseas organizations to help us with game development. That will enable our domestic staff to focus on marketing and on project management as we release new games and create the game component libraries.

2.4.4 Communications

To get these high level executives, we will develop an online ad campaign with landing pages containing lead generation forms that visitors can fill out to get whitepapers on using mobile gaming to attract customers. Our white papers will include the concept of embedding advertising within the games as well as examples of custom games created just for a specific organization.

We also will network at major trade shows and conferences, including obtaining speaking engagements where we can discuss case studies to expose our concepts and strategies to the right level of buyer.

2.4.5 Keys to Success

The primary key to success is to be able to show case studies in which other companies leveraged the power of mobile games to reach their market. This can be tracked using metrics such as the number of times a gamer clicked on an ad embedded into a game, the number of times a custom game was downloaded or an increase in sales of the product being promoted. Success can also be tracked by industry buzz.

For example, fast food chain Burger King created a Facebook application that allowed users to earn points for "unfriending" one of their friends. The application would show the image of the friend burning. Upon burning 10 friends, the user would be entitled to a free burger. Word of this application spread very quickly and quite a few Facebook users enjoyed participating. This campaign did two things: generated traffic into restaurants and generated a tremendous amount of media buzz. It cost significantly less than a paid advertising campaign involving television time purchases.

3.0 Marketing Plan Strategy

Gamers like to share notes with other gamers. On our web site, we will create a forum where people can post and respond to comments freely as well as offer suggestions for new games.

Forums will require registration and users who post more frequently will be rewarded with a special tag, a gold star, next to their avatar to show other users that they are a "super contributor" to the forums. For our demographic, this is a badge of honor that they try to attain proudly.

3.1 Emphasize Creativity, Service and Speed to Market

Since our games will be tied to current news events, we will emphasize our focus on creativity along with spectacular service and speed of development for our consulting clients. It is important for us to get to market quickly in order to capitalize on the news event that is associated with the game. The longer the delay between game conception and game release, the less the penetration of that game.

3.2 Emphasize Fun

Our goal is to establish a reputation for games that poke fun at what many would consider humerous or ridiculous actions by well-known people. Each game will contain a link to our web site where users can find out about more games and subscribe to our email list and follow us on Twitter and Facebook.

Additionally, to help promote games via word of mouth, each game has the option to notify a friend. So, a user can send a text message to a friend instantly to share their excitement or recommendation about the game.

4.0 Expense Budget Summary

Marketing expenses are mostly for staff required to do the marketing activities listed. The vast majority of the software tools needed to implement the activities, such as analytics and landing page creation, are available for free. The exceptions to this are for specific tools like email marketing and forums.

4.1 Expense Budget by Month - Year 1

We do not expect an increase in marketing staff requirements during year 1 because one person can actually do a lot of these activities. Once they have put marketing plan processes into place, the marketing activities upkeep becomes easier and can be handled by junior staff. Below is a breakdown of marketing expenses by month for year 1.

4.2 Expense Budget by Year

We anticipate second and third year marketing expenses to increase, again mostly for covering the cost of additional staff to help facilitate the additional requirements for marketing activities. We expect sales and marketing expenses to be around 15% of total sales.

Table: Marketing Expense Budget

5.0 Sales Forecast

Sales will come from three sources:

1. Game downloads - this includes free and paid downloads. The free downloads are monetized from embedded advertising sponsorships

2. Embedded Advertising Sponsorships - ads embedded in both free and paid games

3. Custom games developed for companies - this would be consulting projects to develop iPhone, Blackberry and Android promotional games

Sales costs relate to the fees charged by our channel partners for carrying the games, such as Appstore, or for our estimated costs for staff to sell ad sponsorships or develop custom games.

5.1 Sales Forecast by Month - Year 1

Below is our first year's sales forecast broken down by product type, estimated unit pricing and costs:

6.0 Progress Measurement and Monitoring

In order to make sure that we are on track, we have created a variety of key metrics that we will measure on a regular basis. These may require adjustments and fine tuning as we progress. They are our best estimates based on currently available market research.

6.1 Key Marketing Metrics

We estimate that 1 of every 10 people who visit the landing page or see a tweet or Facebook post will download a game. Other metrics include the average sale price estimated based on paid downloads as well as sales of advertising sponsorships and custom game development.

Table: Key Marketing Metrics

Below is a breakdown of key marketing metrics measured by month for year 1:

6.2 Other Success Metrics

Other key metrics we will measure to monitor our success are as follows:

 Number of speaking engagements

 Five star game reviews

 Industry awards

 Number of games developed

 Number of game feature libraries created

 Number of deals with channel partners

 Email list size

We will also pay attention to the number of tweets we make and the number of followers on Twitter as well as the number of Facebook fans we get. Below is a breakdown of other success metrics by month for year 1:

7.0 Marketing Organization

Mobile News Games is a small company with very focused aspirations. Our team is comprised of two unique individuals who have a solid background in mobile communications and marketing. Together with a team of local and international software development staff, we are able to bring to market a wide array of unique mobile games that provide an experience that other gaming companies do not.

Bill Philips, President, oversees the general management, including game development, of MNG. Prior to forming the company, he was Vice President of Products at a major wireless telecommunications provider for 5 years. He is also a member of the Mobile Marketing Association.

Donna Paster, VP Marketing, is responsible for all areas of marketing. She co-founded MNG with Bill Philips. Donna's prior experience includes developing the key marketing plan that launched several mobile versions of games for a large video game producer. Donna will be assisted by 2 marketing interns hired from local universities as co-op students throughout the year. These students will handle the more routine aspects of the marketing efforts while Donna focuses on the key strategic relationships.

http://www.morebusiness.com/templates_worksheets/bplans/printpre.brc (22/4/17)

http://www.morebusiness.com/templates_worksheets/bplans/printpre.brc

RR-F4/Marketing Essentials/Module Booklet/Unit 2 Marketing Essentials Assignment Brief Feb 2018 - GZ.pdf

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT Pearson BTEC HND in Business (RQF)

Unit 2 Marketing Essentials

Session: February 2018

Programme title TNA67 Pearson BTEC HND in Business

Unit number and title Unit 2 Marketing Essentials

Unit Type Core

Unit Level and Credit Value Level 4 15 Credit

Assessor (s) Dr Moshahid Rahman, Mr Anthony Dilleen, Mr Christopher Ngwasiri,

Issue Date 3 March 2018

Final assignment submission deadline

11-16 June 2018

Late submission deadline

18-23 June 2018

Resubmission deadline TBA

Feedback

Formative feedback will be available in class during the semester.

Final feedback will be available within 2 weeks of the assignment submission date.

General Guidelines

 The work you submit must be in your own words. If you use a quote or an illustration from somewhere you must give the source.

 Include a list of references at the end of your document. You must give all your sources of information.

 Make sure your work is clearly presented and that you use correct grammar.

 Wherever possible use a word processor and its “spell-checker”.

Internal verifier Dr Gilbert Zvobgo

Signature (IV of the brief) *

[email protected] Date 1/3/18

mailto:[email protected]

Assignment Brief – continued

ICON College of Technology and Management Pearson BTEC HND in Business (RQF)

Unit 2: Marketing Essentials (L4) Session: February 2018

Coursework Recommended Word limit: 3,000–4,000 (LO1: 1,500–2,000, LO2: 1,000–1,500)

This Unit will be assessed by assignment You are strongly advised to read “Preparation guidelines of the Coursework Document” before answering your assignment. ASSIGNMENT

Assignment Context and Business Scenario

You are applying for the role of Marketing Manager within a UK-based organisation of

your choice (subject to the approval by your tutor) and as part of the interview process

you are required to discuss the concept of marketing as well as its role within the

organisation. Further to this you will have to explain how marketing interrelates with other

functions within the business.

Assignment Brief – continued

What you must do

The following tasks are required to be carried out: LO1 Explain the role of marketing and how it interrelates with other functional units of an organisation. You are applying for the role of Marketing Manager within a UK-based organisatiopn of your choice and as part of the interview process you are required to discuss the concept of marketing as well as its role within the organisation. Further to this you will have to explain how marketing interrelates with other functions within the business. LO1 Using examples from your chosen organisation, explain the key roles and responsibilities of the marketing function how roles and responsibilities of marketing relate to the wider organisational context [P1, P2]. To achieve M1, you should analyse the roles and responsibilities of marketing in the context of the marketing environment of your chosen organisation.

To achieve M2, you should analyse the significance of the interrelationships between marketing and other functional units of your chosen organisation. To achieve D1, you should critically analyse and evaluate the key elements of the marketing function and how they interrelate with other functional units of your chosen organisation. (NB: To obtain D1 you must meet both M1 and M2 criteria).

Following your application for the position of a Marketing Manager, you have now been

appointed a new Marketing Manager for your chosen organization. The first objective set

for you is to research the competition and produce a marketing plan based on your

findings. This assignment has two parts (LO2 and LO3):

LO2 Compare ways in which organisations use elements of the marketing mix

(7Ps) to achieve overall business objectives

Using your chosen organisation and another organisation, compare how organisations use the various elements of the 7Ps marketing mix in the marketing planning process to achieve business objectives. This will be submitted as a briefing paper for the marketing team. [P3]. To achieve M3, you should evaluate different tactics applied by organisations to demonstrate how business objectives have been achieved. LO3 Develop and evaluate a basic marketing plan. (NB: A marketing plan template is available in the VLE, but it is not mandatory to use this). Using your chosen organisation, produce and evaluate a basic marketing plan to meet

marketing goals and objectives. The marketing plan should include all elements of the 7Ps

marketing mix, with an action plan and measures for monitoring and evaluating progress and

meeting of your chosen organisation’s goals and objectives [P4].

To achieve M4, you should produce a detailed, coherent evidence-based marketing plan for your chosen organisation.

Assignment Brief – continued

To achieve D2, you should design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing objectives. (NB: To obtain D2 you must meet both M3 and M4 criteria).

Grading Criteria

Learning Outcome Pass Merit Distinction

LO1 Explain the role of marketing and how it interrelates with other functional units of an organisation.

P1 Explain the key roles and responsibilities of the marketing function.

P2 Explain how roles and responsibilities of marketing relate to the wider organisational context.

M1 Analyse the roles and responsibilities of marketing in the context of the marketing environment.

M2 Analyse the significance of interrelationships between marketing and other functional units of the organisation

D1 Critically analyse and evaluate the key elements of the marketing function and how they interrelate with other functional units of an organisation.

LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives

P3 Compare the ways in which different organisations apply the marketing mix to the marketing planning process to achieve business objectives.

M3 Evaluate different tactics applied by organisations to demonstrate how business objectives have been achieved.

D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve overall marketing objectives.

LO3 Develop and evaluate a basic marketing plan.

P4 Produce and evaluate a basic marketing plan for an organisation.

M4 Produce a detailed, coherent evidence- based marketing plan for an organisation.

Relevant Information Guide to student 1. Preparation guidelines of the Coursework Document

referencing system. g. You should provide references using the Harvard referencing system (including the Power

Point Presentations). h. Do not use Wikipedia as a reference.

Assignment Brief – continued

Collusion is copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism or collusion will be investigated and if found to have occurred will be dealt with according to the College procedure. (For details on Plagiarism & Collusion please see the Student Handbook)

3. Submission

a. Initial submission of coursework to the tutors is compulsory in each unit of the course. b. Student must check their assignments on ICON VLE with plagiarism software Turnitin to

c. All Final coursework must be submitted to the Final submission point into the unit (not to the Tutor). A student would be allowed to submit only once and that is the final submission.

d. Any computer files generated such as program code (software), graphic files that form part of the coursework must be submitted as an attachment to the assignment with all documentation.

e. Any portfolio for a unit must be submitted as a hardcopy to the Examination Office. f. The student must attach a tutor’s comment in between the cover page and the answer in the

case of Resubmission. 4. Good practice

a. Make backup of your work in different media (hard disk, memory stick, etc.) to avoid distress due to loss or damage of your original copy.

5. Extension and Late Submission and Resubmission

b. Late submission will be accepted and marked according to the College procedure. It is noted that late submission may not be graded for Merit and Distinction.

c. All Late coursework must be submitted to the Late submission point into the unit (not to the Tutor). A student would be allowed to submit only once and that is the final submission.

6. Submission deadlines

Submission deadlines Online to the ICON College VLE Final Submission date: 11-16 June 2018 Late Submission date: 18-23 June 2018

Assignment Brief – continued

Glossary:

Analyse: Break an issue or topic into smaller parts by looking in depth at each part. Support each part with arguments and evidence for and against (Pros and cons). Break something down into its components; examine factors methodically and in detail to recognise patterns by applying concepts and making connections to predict consequences. Apply: Use a particular method/technique to solve a problem Critically Evaluate/Analyse: When you critically evaluate you look at the arguments for and against an issue. You look at the strengths and weaknesses of the arguments. Compare: Estimate, measure or note the similarity or dissimilarity between one thing and another…(compare something to) draw an analogy between one thing and another for the purpose of explanation or clarification. Determine: Find a solution by argument, making clear your reasoning (e.g., determine the type of event that has occurred, based on the data provided”) (application) or “Determine the most appropriate course of action for the company, within the given constraints” (higher order skills). Design: Create a plan, proposal or outline to illustrate a straightforward concept or idea. Develop: Progress/expand/initialise from a starting point Evaluate: Examine in detail the meaning or essential features of a theme, topic or situation; break something down into its components; examine factors methodically and in detail, identify separate factors, say how they are related and how each one contributes to the topic to make reasoned judgements and conclusions. Review the information then bring it together to form a conclusion. Explain: When you explain you must say why it is important or not important. Clarify a topic by giving a detailed account as to how and why it occurs, or what is meant by the use of this term in a particular context. Produce: To bring to existence. Give rise to by intellectual or creative ability: to make or manufacture.

RR-F4/Marketing Essentials/Module Booklet/Unit 2 Marketing Essentials SoW - Feb 18.pdf

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ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

Pearson BTEC HND in Business (RQF) Unit 2 Marketing Essentials

Scheme of Work Session: February 2018

Course Code TNA67: PEARSON BTEC HND in Business (RQF)

Scheme of Work

This unit is aimed at achieving the following learning outcomes: LO1: Explain the role of marketing and how it interrelates with other functional units of an

organisation. LO2: Compare ways in which organisations use elements of the marketing mix (7Ps)

to achieve overall business objectives. LO3: Develop and evaluate a basic marketing plan.

Programme Title: TN67 Pearson BTEC in Business

Unit number and Title Unit 2 Marketing Essentials

Unit Type Core

Unit Level and Credit Value Level 4 15 Credit

Sessions Learning Outcomes Session Activities

Session1 Lecture 2 hours Tutorial 2 hours

LO1: To introduce the Unit’s content and the Unit assessment

Introduction to the Unit learning outcome, Syllabus, and assignment briefing Reading, Academic Skill, citation and referencing, group formation.

Session 2 Lecture 2 hours Tutorial 2 hours

LO1: Explain the role of marketing and how it interrelates with other functional units of an organisation Topics: Definitions and the marketing concept The role of marketing

Definitions of marketing and the nature of marketing. The development of the marketing concept, including current and future trends. How the external environment influences and impacts upon marketing activity. The structure and operations of marketing departments. Overview of marketing processes that include analysis,

strategic planning and the marketing mix. The different roles of marketing within both a B2C and B2B context. Sample activities:

Question and answer activity on marketing process

Group activity – Different types of marketing concepts

Group activity – different roles of marketing within both a B2C and B2B context.

Session 3: Lecture 2 hours Tutorial 2 hours

LO1: Explain the role of marketing and how it interrelates with other functional units of an organisation Topic: The interrelationships of functional units

Marketing as a business function. The different roles of business units and the interrelationships between these functional units and marketing. Sample activities: Group activity - each group explains the different roles of business units and the interrelationships between these functional units and marketing.

Page 2 of 5

Class discussion – What is the importance of the marketing function in an organisation?

Session 4: Lecture 2 hours Tutorial 2 hours

LO2: Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives Topic: The 7Ps marketing mix

Product: Differences between products and services,

importance of brands, product development and

product lifestyle. Price: Pricing context, pricing strategies and tactics. Place: Channel management, supply chain management and logistics. Promotion: Integrated communication mix and promotional tools. Group exercise on the use of the marketing mix to achieve overall business objectives

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address

general questions and concerns.

Academic writing and a review of academic requirements and submission format. Formative Feedback

Session 5: Lecture 2 hours Tutorial 2 hours

LO2: Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives Topic: The 7Ps marketing mix: The additional 3Ps

People: The different roles of ‘people’ in marketing,

including customer interfacing and support personnel.

The different skills, attitudes and behaviour of people

delivering the product or service to customers. Physical evidence: The tangible aspects of service

delivery − visual, aural and olfactory elements. Process: Systems and processes involved in delivering a consistent service. Different types of processes used to expedite the marketing function Group activity – Discussion of the importance of the additional 3Ps in achieving overall business objectives

Session 6 Lecture 2 hours Tutorial 2 hours

LO2: Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives Topic: Achieving overall business objectives

The shift from the 4Ps to the 7Ps and the

significance of the extended marketing mix. An overview of the marketing planning process (Analysis, Planning, Implementation and Control) and marketing strategy Sample activities: Question and answer activity based on group work on the significance of the extended marketing mix. Group work – Discussion of the importance of a marketing planning

Session 7 Lecture 2 hours Tutorial 2 hours

LO3: Develop and evaluate a basic marketing plan Topic: Marketing planning

The importance and value of marketing plans. The links between marketing plans, marketing objectives and marketing strategies. Sample activities: Question and answer activity – what are the strengths weaknesses of marketing plan? Discussion on the importance of marketing plans, marketing objectives and marketing strategies

Session 8: Lecture 2 hours Tutorial 2 hours

LO3: Develop and evaluate a basic marketing plan Topic: Marketing planning

Evaluating and monitoring marketing plans using appropriate control and evaluation techniques such as sales analysis, market-share analysis, efficiency ratios and cost-profitability analysis. Sample activities: Question and answer based on the importance of evaluating a marketing plan

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Group discussion – What are the advantages and disadvantages of the evaluation techniques such as sales analysis, market-share analysis, efficiency ratios and cost-profitability analysis

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address

general questions and concerns.

Academic writing and a review of academic requirements and submission format. Formative Feedback

Session 9: Lecture 2 hours Tutorial 2 hours

LO3: Develop and evaluate a basic marketing plan Topic: Structure and development of marketing plans

Market segmentation and target market selection Sample activities: Pair work – Importance of segmentation Group activity – Discuss segmentation strategies Class discussion – What are the advantages and disadvantages of market segmentation?

Session 10 Lecture 2 hours Tutorial 2 hours

LO3: Develop and evaluate a basic marketing plan Topic: Marketing planning

Setting goals and objectives, situational analysis tools and techniques, creating a marketing strategy and allocation of resources and monitoring and control measures Sample activities: Pair work – Importance of organisational setting objectives Group activity – Create a marketing strategy and allocation of resources. Highlight implementation problems.

Brief tutor-led overview of assessment requirements.

Open question and answer activity to address

general questions and concerns.

Academic writing and a review of academic requirements and submission format. Formative Feedback

Session 11 Lecture 2 hours Tutorial 2 hours

Revision Session Reserve class to cover any missing class or Revision lecture

Session 12 Presentations

Study week

Session 13 Study week

Session 14 Final Assignment Submission

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Pearson Edexcel Standard Verifier (EE) Cheran Stevens Standard Verifier (EE): Visit Date: TBA Recommended Reading Text Books: Bailey, S. (2011), Academic Writing – A Handbook for International Students, London, Routledge Brassington, F. and Pettitt, S. (2012) Essentials of Marketing. 3rd Ed. Harlow: Pearson. Burns, T. and Sinfield, S (2016), Essential Study Skills: The Complete Guide to Success at University, Los Angeles, SAGE. Groucutt, J. and Hopkins, C. (2015) Marketing (Business Briefings). London: Palgrave Macmillan. Jobber, D. and Chadwick, F. (2012) Principles and Practice of Marketing. 7th Ed. Maidenhead: McGraw- Hill. Kotler, P. and Armstrong, G. (2013) Principles of Marketing. London: Prentice Hall. McDonald, M. and Wilson, H. (2011) Marketing Plans: How to Prepare Them, How to Use Them. 7th Ed. Chichester: John Riley and Sons. Swales, J. M and Feak, C, B. (2012), Academic Writing for Graduate Students, Ann Abor, The University of Michigan. Journals Journal of Marketing (available in ICON Library) Harvard Business Review (available in ICON Library) Websites American Marketing Association www.ama.org Chartered Institute of Marketing (UK) www.cim.co.uk Write a Simple Marketing Plan https://www.entrepreneur.com/article/60000 Free Marketing samples http://www.mplans.com/sample-marketing-plans.php#.WPQb0dLyuUl News Papers The Financial Times Business http://www.ft.com/home/uk Evening Standard Business http://www.standard.co.uk/business/ CITY A.M. Business http://www.cityam.com/ Websites:

http://www.ama.org/

http://www.cim.co.uk/

https://www.entrepreneur.com/article/60000

http://www.mplans.com/sample-marketing-plans.php#.WPQb0dLyuUl

http://www.ft.com/home/uk

http://www.standard.co.uk/business/

http://www.cityam.com/

Page 5 of 5

Pearson Resources: Student Portal: HN Global Please access HN Global for additional resources support and reading for this unit. For further guidance and support on presentation skills please refer to the Study Skills Unit on HN Global. Link to: https://www.highernationals.com/

https://www.highernationals.com/

RR-F4/Marketing Essentials/Support/Academic Writing 2.pdf

Academic writing skills

Writing, referencing & using electronic resources

“Care in the choice of one’s words is the respect that the mind

pays

to the instrument of its own being”

Agenda

• Writing

– What is academic writing

• Referencing

– Books

– Articles

– Others

• Electronic resources

Academic writing

• What is it all about?

Writing

• Academic writing is Formal

– No exaggeration (Not: extremely important)

– Impersonal (no use of “I am”)

– Direct to the meaning

– No final judgment!! Always allow for arguing and

accepting other opinions!!

WHAT DOES FORMAL WRITING

LOOK LIKE?

• Focus on the issue, not the writer Keeping

your writing objective and impersonal can make

it more convincing.

– It will be argued that the benefits of sales

promotion outweigh the disadvantages.

– I will argue in this assignment that ...

Choose words with precise

meanings

• Avoid words with vague meanings

– Compare:

• The writer looks at the issue

– with

• The writer examines the issue.

• The second option is more formal.

– Formal choices:

• He states … maintains … argues

– Informal choices:

• He says … talks about …

Add some style

• Writing is a very logical exercise, adding

style to it will enhance clearness and

power of convincing…

– Phrases for transition

– Phrases for emphasis

– Phrases for counterpoint

Phrases for transition

• Regarding

• Admittedly

• Consequently

• As a result

• Ultimately

• According to

• For this reason

Phrases for emphasis

• Moreover

• In fact

• Additionally

• For example

• In point of fact

• As a matter of fact

• Indeed

Phrases for counterpoint

• Conversely

• On the other hand

• However

• Nevertheless

• Notwithstanding

• Nonetheless

• Yet

• Despite

• Although

• Instead

Referencing

• What does referencing mean?

• Why should I include references in my

work?

• How do I reference my work?

What does referencing mean?

• When writing an academic piece of work

you need to acknowledge any ideas,

information or quotations which are the

work of other people. This is known as

referencing or citing.

Why should I include references

in my work?

• You should include references in order to:

– acknowledge the work of others

– provide evidence of your own research

– illustrate a particular point

– support an argument or theory

– allow others to locate the resources you have used

• And most importantly:

– avoid accusations of plagiarism

How do I reference my work?

• Your references should be consistent and

follow the same format. Various systems

have been devised for citing references,

but most Schools use the Harvard system

Referencing while writing

• References will be cited in your work in

two places: -

– 1) Where a source is referred to in the text

(Citation)

– 2) In a list (the Bibliography/List of references)

at the end of the assignment.

Citing references in the text

• Citing the author in the text

• Whenever a reference to a source is

made, its author's surname and the year

of publication are inserted in the text as

in the following examples...

Citing references in the text Cont.

– Dogs were the first animals to be

domesticated (Sheldrake, 1999).

• If the author's name occurs naturally in the

sentence the year is given in brackets .>>

– Sheldrake (1999) asserts that dogs were the

first animals to be domesticated.

Using direct quotes

• If you quote directly from a source you must

insert the author’s name, date of publication

and the page number of the quotation.

– ‘The domestication of dogs long predated the

domestication of other animals.’ (Sheldrake, 1999,

p.5).

• The page number should be given at the end of

the quote, in separate brackets if necessary, as

in the example below.

– Sheldrake (1999) asserts that the ‘domestication of

dogs long predated that of other animals.’ (p.15).

Citing works by more than one

author

• If your source has two authors you should

include both names in the text.

– Anderson and Poole (1998) note that a

‘narrow line often separates plagiarism from

good scholarship.’ (p.16).

Citing works by three or more authors

• If there are three or more authors you should

include the first named author and then add ‘et

al.’ in italics followed by a full stop. This is an

abbreviation of ‘et alia’ which means ‘and others’

in Latin.

– In the United States revenue from computer games

now exceeds that of movies (Kline et al., 2003).

Citing works by the same author written

in the same year

• If you cite two or more works written in the same year by the same author, then you must differentiate between them in both the text and your List of references by listing them as a,b,c etc.

– Natural selection can cause rapid adaptive changes in insect populations (Ayala, 1965a) and various laboratory experiments have been conducted to assess this theory (Ayala, 1965b).

Citing secondary sources

– Sheff (1993) notes that Nintendo invested heavily in advertising (cited in Kline et al.,2003, p.118).

Writing a Bibliography or List of

references

• The List of references appears at the end of

your work and gives the full details of everything

that you have cited in the text in alphabetical

order by the author’s surname

Printed books

• Printed books should be referenced using the following format and punctuation.

– Author/editor’s surname and initials.,

– (Year of publication).

– Title of book: including subtitles. (in italics or underlined)

– Edition. (if applicable)

– Place of publication: (followed by a colon)

– Name of publisher.

• Reference to a book with one author

– Sheldrake, R., (1999). Dogs that know when

their owners are coming home: and other

unexplained powers of animals. London:

Arrow Books.

• Reference to a book with two authors

– Anderson, J. and Poole, M., (1998).

Assignment and thesis writing. 3rd ed.

Chichester: John Wiley & Sons.

Print journals and newspapers

• Print journals should be referenced using the following format and punctuation. – Author's surname, initials., (or Newspaper title where

there is no author,)

– (Year of publication).

– Title of article.

– Name of journal. (in italics or underlined),

– Date of publication (if applicable e.g. 18 June)

– Volume number (in bold) (if applicable)

– (Part/issue number), (if applicable)

– Page numbers.

Example

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. 332 (7552), 1224-1225.

• Britton, A., (2006). How much and how

often should we drink? British Medical

Journal. Vol. 332, No. 7552, pp.1224-1225

E-journal article accessed via

website on the open Internet

• Britton, A., (2006). How much and how often

should we drink? British Medical Journal. 332

(7552), 1224-1225. [online] Available

from:http://bmj.bmjjournals.com/cgi/content/full/3

32/7552/1224 [Accessed 2 June 2006].

http://bmj.bmjjournals.com/cgi/content/full/332/7552/1224

Websites, web pages

e.g. University of London)

– (Year of publication).

– Title. (in italics or underlined)

– Edition. (if applicable, e.g. update 2 or version 4.1)

– [online]

– Place of publication: (if known)

– Name of publisher. (if known)

– Available from: <URL>

– [Accessed (enter date you viewed the website)].

References

– Holland, M., (2005). Citing references. [online] Poole:

Bournemouth University. Available from:

<http://www.bournemouth.ac.uk/academic_services/d

ocuments/Library/Citing_References.pdf> [Accessed

2 June 2006].

– University of Westminster, (2007). Harry Potter fans to

cast spell over Westminster. [online] London:

University of Westminster. Available from:

<http://www.wmin.ac.uk/page-14428> [Accessed 24

July 2007].

RR-F4/Marketing Essentials/Support/Academic Writing Skills 1.pdf

Dr Marco Angelini,

UCL Transition Programme

With thanks to Dr Colleen McKenna for kind

permission in reproducing her material in this

presentation

Approaches to critical reading and writing

Outline for today

 Introduction

 Considering your writing practices

 Reading as part of writing

 Writing as part of thinking

 Planning

 Organising written work

 Looking at text

 Finding time to write

What type of writer are you?

The diver

The patchworker

The architect

The grand planner

Identifying your writing style

Previous writing experiences …

Reading as part of writing

Critical reading (and how it benefits your writing)

 Helps you determine what is and

what is not a robust piece of

research and writing in your field

 Helps you identify where existing

research has left a gap that your

work could fill

 Attention you pay to writing of others

helps you become more self-aware

of your own written work:

– Sufficient evidence to back up claims;

argumentation/reasoning; becoming

alert to your assumptions and how they

affect your claims

 Wallace and Wray, 2006

Critical reading?

How do you go about

reading an academic text

in your field?

Critical reading? Some possible approaches

How do you go about reading an

academic text?

 Use parts of the text: abstract,

contents, index, sub-headings,

graphs, tables, introduction and

conclusion

 Skim to get the gist of the argument

 Read with questions in mind

Critical reading? Some possible approaches

 Make notes/mind map/ use

highlighter

 Write a summary in your own words

 Write a brief critical response

 Keep note of bibliographic details

Critical reading/ critical writing

Handout – p. 12-13 Wallace and Wray

 As a critical reader, one evaluates

the attempts of others to

communicate with and convince

their target audience by means of

developing an argument;

 As a writer, one develops one's own

argument, making it as strong and

as clear as possible, so as to

communicate with and convince

one's target audience.

– Wallace and Wray, 2006

Free writing

 Way of using writing as a tool for

thinking

 Allows you to write without

constraints.

To do it –

Write continuously, in complete

sentences, anything that occurs to

you.

Free writing

Please write down EITHER

1. An idea / theme from your field

2. Use the topic:

‘what I enjoy about writing…’

Use a free writing technique to write

anything at all that occurs to you

about this topic.

This writing will not be shown to

anyone else.

Planning (Sharples)

 Plans should be flexible

 Through the writing process a deeper

understanding of topic is gained – thus,

planning is increasingly out of step as

writing develops:

– “The act of writing brings into being ideas

and intentions that the writer never had at

the start of the task or that could not be

expressed in any detail.”

Plans

 Free writing

 Notes/sketches

 Idea lists

– Ideas on post-it notes

 Mind map

 Skeleton paper with

sub-headings

 Outline

 Draft text

 Adapted from

Sharples, 1999

 What techniques do you use to

develop ideas in your writing

and/or signpost an argument?

Developing/sustaining argument

 ‘proving’ the thesis statement or

controlling argument

 Signposting argument (Giving the

reader cues; anticipating/referring

back)

 Using words which signal transition or

development – “However”,

“Nevertheless”, “Thus”, “Therefore”,

“Despite”

 Illustrating theoretical positions with

concrete examples

 Generalising from a particular set of

findings if possible

 Using subheadings

 Using/responding to counterarguments

and examples

 Anticipate next paragraph at end of

previous one

Signposting and making transitions

 Links between paragraphs – pick up point from the end of a paragraph at the start of next one.

 Conjunctions to express different kinds of meaning relations

– Temporal: when, while, after, before, then

– Causative: because, if, although, so that, therefore

– Adversative: however, alternatively, although, nevertheless, while

– Additive: and, or, similarly, incidentally

 Signposting through pronouns - this, these, those, that, they, it, them

 Adverbs: Firstly, secondly, etc

 Illustrative: For example, in illustration, that is to say,

Signalling conclusions

Citation

Examples of Citing

• The hip bone is confirmed to be connected to the thigh bone (Funny Bones, 1989).

• The cytoskeletal network acts like the strong bars within a scaffolding (Alberts et al., 1998)

• Slavic-Smith (2006) postulated three classifications for nucleoli in neurons

• It was shown in 2006 by Take That, that a successful comeback tour was possible [1].

Bibliographies

 Alberts, Bray, Johnson, Lewis,

Raff, Roberts & Walter. Essential

Cell Biology, 1st Edition, Garland,

1998

 Dickson, B (2002) Molecular

Mechanisms of Axon Guidance.

Science 298 1959-1964

 [1] www.bbc.co.uk/news

Writing tips

 Write a sentence for each paragraph you want

to write – you can then move them about easily

to form thread of argument

 Index tag the main points you want to use in

your references, so they can be found easily

while writing

 Write the introduction last

 Write the conclusion first

 Read what you have written aloud to see if it

sounds right

 Find best environment for you – when and

where do you work best

 Take a break before trying to do your final check

 Use a writing checklist

Making time for writing

 Write throughout the course

 Do free writing as frequently as

possible

 Snack and binge writing (Rowena

Murray)

 Writing groups

 Don’t wait until you feel ‘ready’ to

write…

Writing for learning

 Read regularly in the field. Find writers whose work you admire and study what and how they do things.

 View writing as part of a process rather than a product

 Find models of good writing in your discipline – analyse it; ask what works and what doesn’t; consider writing style; vocabulary; techniques – metaphor; explanation; signposting

 Reflect on your own writing practices

 Keep a notebook or learning journal

 Explore free writing

To sum up…

1. Asked ‘what type of writer are

you’? What are your writing

practices?

2. What are your approaches to

reading? How might you link

reading and writing?

3. Free writing as a means of

generating ideas

4. Thought about structure of the

essay at the paragraph level and

the overall level

5. Tried to relate these ideas back

to the outline.

Reference

Academic Writing Skills

Presentation - UCL https://www.ucl.ac.uk/transition/study-

skills.../Academic_Writing_Skills_11.pptx

RR-F4/Marketing Essentials/Support/marketing 7.pptx

Aldi

Price

Market penetration – charging lower prices for new products to help them enter the market and gain market share quickly.

Premium pricing – emphasising the quality or brand positioning of a product to allow a higher price to be charged.

Competitive pricing – pricing at a slightly lower prices than competitor. Competitive pricing is a key strategy for Aldi. Aldi is able to offer quality products at low prices as it buys in great volume. The fact that Aldi buys such large quantities of these products allows great leverage for negotiating the best possible prices with its suppliers. This is called economies of scale. Buying large quantities of each product allows Aldi to pass these savings to its customers.

Place

The place element of the marketing mix involves identifying where the product or service will be sold. Aldi keeps its store layouts simple to limit waste and keep costs down. This means Aldi can focus on offering its customers the lowest possible prices for its products. When considering new store locations, Aldi takes into account the number of people visiting an area as well as the demographic of the area - for example, the population of the area should be more than 30,000 people

the position of store - Aldi focuses on edge of the town centre locations with good visibility from a main road and not too much competition

the accessibility of the store and its public transport links

the number of parking spaces available

Promotions

For Aldi to achieve its objective of increasing its market share, it had to ensure its promotional activity demonstrated the balance of its marketing mix. For example, to increase customer loyalty it had to communicate its key quality and value messages. Promotion helps to:

increase awareness and improve brand recognition

increase demand for products

improve brand image

highlight the superiority of products and services.

Promotions

Above-the-line promotions are paid-for advertising aimed at a mass audience. These include the media such as television, radio, magazines and newspapers that reach a large number of people. This form of promotion can be costly. It can also be difficult to target specific audiences. Aldi uses a range of above-the-line methods to reach its customers and potential customers.

Promotions

These include:

Advertising on television. The ‘Like Brands’ campaign features 20 second television adverts which focus on a particular product. The adverts show a famous brand as a benchmark for quality side-by-side with an Aldi brand product. They use the slogan ‘Like Brands. Only Cheaper’. This reinforces the message that Aldi products are cheaper than leading brands but equal in terms of quality. The adverts provide personality to the Aldi brand. They use humour which helps to build trust and an emotional connection with target audiences

Promotions

Printed leaflets are distributed within stores (1 million copies printed per week) and also to customers living in areas surrounding stores. These leaflets help to reinforce the ‘Like Brands’ campaign. They also showcase products with limited availability and seasonal offers available in stores. Newspaper adverts extend the ‘Like Brands’ campaign and help to showcase a variety of product categories. They also communicate Aldi’s ‘Swap and Save’ message. This campaign demonstrates the amount that shoppers could save if they swapped their weekly shop to Aldi. They compared Aldi products to famous brands to demonstrate Aldi’s value for money message. In store posters are also used to highlight the ‘Swap and Save’ message

Promotions

Below-the-line promotion uses different ways to engage with customers. These methods can be more easily targeted to specific audiences than above-the-line methods. They offer organisations a greater level of control over their communications. Aldi uses a range of below-the-line methods.

Promotions

They encourage two-way communication with customers. These social media channels provide a platform through which Aldi can interact with customers. It can then assess their opinions about the brand. One objective of this form of promotion is to create ‘Aldi Advocates’. These are consumers who recommend Aldi to others, through stimulating interactions about the high quality and low prices of Aldi products. For example, the ‘I Love Aldi’ campaign asked fans to send a virtual Aldi Valentines card to a Facebook friend. This was encouraged by providing rewards. The campaign gave consumers the chance to win a £10 voucher. They could also win a box of Aldi chocolates for their Valentine. The campaign also encouraged consumers to complete the sentence ‘I love Aldi because...’ directly onto Aldi’s Facebook page to encourage positive brand feedback.

Promotions

Aldi also uses direct e-mails. These e-mails allow Aldi to communicate a variety of messages to target customers. For example, they can convey the ‘Swap and Save’ message as well as promote seasonal messages such as products associated with Pancake Day.

Promotions

Aldi’s website is an integral part of its below-the-line promotion. It features all of Aldi’s key promotional messages as well as additional content to engage consumers. Examples include recipe ideas and weekly offers. Aldi developed the www.likealdi.co.uk micro-website to further encourage brand engagement with the ‘Like Brands’ TV campaign. The site provides consumers with the opportunity to upload their ideas for the next Aldi TV campaign. Aldi also uses a dedicated recruitment website to promote its employer brand messages and career opportunities.

Promotions

Further below-the-line method used to highlight the quality of Aldi’s products is positive 3rd party endorsements. Aldi has entered over 1,000 of its products into awards such as Grocer Golds, Pizza and Pasta Awards (PAPA) and the British Frozen Food Federation awards.

Promotions

In 2012 Aldi was awarded ‘Best Supermarket’ by consumer Watchdog Which? It beat competition from Marks & Spencer and Waitrose. Further positive endorsements for products on TV and in the press reaffirm the message that Aldi products are of the highest quality as well as being great value for money. For example, Aldi’s Christmas pudding was awarded runner-up and acknowledged as a ‘bargain’ in a taste test comparison in Good Housekeeping magazine.

Promotions

Effective public and media relations help to create positive press exposure. Aldi has secured record coverage through hard working and innovative media relations. Journalists from newspapers such as The Grocer, The Financial Times and The Times were invited for exclusive interviews with Aldi’s Group Managing Directors. They discussed record breaking sales results.

Promotions

Further coverage was gained through targeting key media at specific times with seasonal promotional messages. The ‘Swap & Save’ campaign highlighted the savings available through shopping at Aldi at times when value for money is high on the agenda. This was particularly relevant with its ‘Back to School’ and Christmas products.

RR-F4/Marketing Essentials/Support/Marketing 3 functions.pptx

Marketing functions

To achieve success in marketing, effort must be made to have a glimpse of the big picture and the activities that need to be performed to achieve the set objectives. These set of activities are called marketing functions. The marketing function refers to a set of specialised processes in order for the objectives of marketing to be achieved.

These objectives give value and satisfaction to consumers in a steady supply at a reasonable price.

Achieve good customer relationships

Provide profit or benefit to the organisation or stakeholders.

Marketing functions (cont)

Marketing serves as a bridge between producers and consumers

There are several components of marketing functions

Researching, pricing, buying, promotion, distribution, storage, processing, product development and management, standardisation and grading, market information, financing, selling, risk bearing and after sales service

Research function

The collection, analysis and distribution of all the information the marketer needs to plan, implement and control need satisfying marketing activities.

The function of marketing that makes it possible for adequate information regarding a target market to be generated.

Research must be carried out to identify the size, behaviour, culture, beliefs, gender etc of the target segment, their needs and wants

The effective product is then developed to satisfy the needs and wants.

Pricing function

The process of coming up with an amount to charge each customer for a product or service. Prices must be seen as customers to be fair ie not too high or too low but it must allow the producer to make a fair profit.

Basic questions asked are

What do customers pay?

How much does it cost too produce?

How much do competitors sell for?

Buying function

The function of buying is performed in order to acquire quality materials for production. When a good product concept is designed, it must be ensured that essential materials are purchased for the product. This function is carried out by the purchase and supply department. The specification of materials goes a long way in assisting the purchasing department to acquire the necessary materials needed for production.

Promotion

The effort to persuade or inform customers about a business’ products or services.

Designing effective communication strategies to inform, persuade or remind customers about the availability and features of a product. Eg

Public relations

Personal selling

Storage

Holding an inventory of goods until needed by customers

Products must be stored and protected until they are needed

This function is particularly important for perishable goods such as fruits and vegetables.

Processing

Processing involves turning a raw product into a commodity that is more preferred or can be easily used by the consumer for example like turning wheat into bread.

Distribution

This is the process of ensuring that the product is easily and effectively moved from the point of production to the target market to enable the product to be easily accessed by the consumer. It also involves

Transportation eg road, rail, ship or air

The systems that track products

The middlemen to engage in the channel of distribution, their incentives and motivations

Risk bearing

Risk is the probability or threat of damage, injury or liability or any other negative occurrence that is caused by internal or external vulnerabilities and they may be avoided by preemptive action.

The process of marketing is characterised by lots of risks, such as damage, pilferage, price fluctuations and storage loss.

Thus risk bearing is assuming responsibility for uncertainties. Hence marketers should have the capacity for risk such as i) effective packaging to protect produce. ii) good warehouse for the storage of the product until needed iii) effective transport to deliver when required iv) effective production system eg diversification, merging, insurance, integration to cater for price fluctuations, natural disasters, theft etc.

Product development and management

It is a process where the market needs and wants are identified which are later on factored into the product during the product design to enhance product quality in the market.

Product development passes through some basic stages to develop a targeted specified product. Products can be managed by evaluating their performance and changing them to fit the current market trend.

In essence it is obtaining, developing, maintaining and improving a product in response to market opportunities or demands. Marketing research helps you know what the customers want.

Standardisation and grading

Standardisation is to establish specified characteristics that the product must conform to such as having a specific test or ingredient which makes the brand unique.

Grading is when you sort and classify your products into different sizes or quantities for a different market segment while maintaining the product standard.

Market information

Information about market conditions, weather, price movements and political changes can affect the marketing process. Market information is provided by all forms of communication such as media and telephone

Financing

This is about raising funds and capital to start the operation or remain in operation. It also refers to the mode of payment for goods and services transferred to customers. Thus it is providing the necessary cash or credit to produce, transport, store, promote, sell or buy products ie it is getting the money to pay for setting up and running a business eg loans, selling stock. It also involves the way customers can pay such as credit cards, payment on delivery, billing.

Selling

Providing customers with the goods and services they need and informing them so that they have a better buying decision.

Selling provides customers through retail outlets or through business to business channels.

Selling involves determining client needs, persuading and influencing decisions, responding to reactions and forming relationships.

After sales service

In a more complex and technical product, marketers should provide assistance to customers after they have purchased the product. With companies that install machines or heavy equipment, most marketing organisations render this service free or with little charge.

After sales service is an effective marketing strategy to build a long lasting customer relationship and staying ahead of your competitors while making profit.

After sales service allows the marketer to know what is required to be done in order to have an effective transfer of ownership to customers creating a big picture while also making profit.

Other market performers

Apart from performers there are many other performers in the supply chain that specialize in trade rather than production and executes tasks related to buying and selling eg wholesalers, retailers, middlemen

Collaborators aid in the exchange process and provide other functions than buying or selling. These include

Advertising agencies

Marketing research firms

Independent product testing laboratories

Transporting firms

There can be specialization in the performance of these functions. Functions can also be shared and shifted amongst the marketing performers.

The importance of marketing functions

Marketing functions help the macro marketing systems to overcome separations and discrepancies between those wishing to make an exchange.

Setting and communicating the value of products and services.

Designing, developing, maintaining, improving and acquiring products that satisfy consumer needs.

Determine the right quality for consumers

They are concerned with the organization’s budgeting

Obtaining, managing and using information about consumer wants and determining what will sell

Good communication with the customer which determines and satisfies their needs.

RR-F4/Marketing Essentials/Support/marketing 4.pptx

The relationship of marketing with other business functions

Production

Marketing can assist these departments in estimating the number and the type of products and services to be produced/provided. Marketing strategies can also try to stimulate a certain response of markets in order to influence the demand of goods/services in terms of level and/or timing. This can be useful to match the production/operational constraints of the organisation. The marketing department will need to work closely with the production department to ensure that:

Adequate research and development is planned to satisfy current and future customer needs

The item can be manufactured to the quality and design specifications laid down by the consumer

The volume of orders generated by marketing can be met within the time schedule required for delivery

It is likely that the marketing department will set deadlines that may stretch the capabilities of the production department. Marketers will wish to get products to market as soon as possible to ensure competitive advantage, whereas production will want to test and develop products fully to ensure that they do not have to repair or replace defective items and that they meet health and safety requirements.

Research and development

marketing can assist R&D throughout from the idea of new product/services to its implementation. Marketing researches can provide inputs to understand what kind of products/services are likely to be the most marketable and/or understand what kind of features customers would like to have

Sales

sales department cultivates relationships with clients and marketing can offer inputs to make it more profitable

Finance

Marketing plans should include financial information for both new and existing products. In this sense, marketing can be a means supporting management when taking investment decisions. Marketing can also give inputs on sales forecasts under different marketing strategies scenario (Wind, 1981). Management can be supported by financial inputs provided by marketing but also to other data such as market actual (or expected) response to a product/service

Human resource management

The marketing department will need to work closely with the HRM to ensure that appropriate skills and staffing levels are in place to:

Research and develop new product ideas

Meet production targets

Create an ambitious and competent sales team

The HRM department will have many recruitment and training demands from across the organisation. It will have to balance its obligations to marketing with those to other departments.

RR-F4/Marketing Essentials/Support/marketing 5.pptx

Cadburys

Product

Cadburys dairy milk is made from real chocolate. Its ingredients include cocoa butter. There is a glass and a half full dairy cream in every 200g of Cadburys milk chocolate.

Cadbury buys 65 million litres of fresh milk each year to make Cadburys dairy milk chocolate.

The product line consists of chocolate, cakes and biscuits, drinks, ice creams and desserts.

Price

Adopted competitive pricing strategy for the basic product

Adopted premium pricing on other variants

Place

Produced at the chocolate factory in Bourneville, Birmingham. It is then transported to the stockrooms. After this Cadburys sells its products to its shops that deal with beverages and confectionery eg corner shops and superstores who then sell it to the public.

Promotions

Cadburys regularly advertises on media, TV and billboard campaigns.

RR-F4/Marketing Essentials/Support/marketing 6.pptx

Marketing mix strategy

Your product or service

What product or services are you going to offer? Discuss the branding, the packaging (where applicable), and ongoing product or development. You should consider the features and benefits you offer, your unique selling points (What makes your product/service different from everyone else's) and what potential spin-off products of services might be.

The pricing of your product or service

Price is a critical part of your marketing mix. Choosing the right price for your products or services will help you to maximise profits and also build strong relationships with your customers. By pricing effectively you will also avoid the serious financial consequences that can occur if you price too low (not enough profit) or too high (not enough sales).

Your position (place) in the marketplace

Whether it's a retail store, online shop or on social media, 'place' refers to the channels and locations for distributing your product, related information and support services. This is how you will position your product in the marketplace, it's the location where a product can be purchased. Often referred to as the distribution channel, this can include any physical store (e.g supermarket) as well as virtual stores (e.g eBay) online. Being in the right location can be a deciding factor in whether a customer buys from you or not. To find out where your ideal customer is buying from it's worth doing some market research.

The promotion of your product of service

How do you promote and market your business now (or intend to)? Regardless of how good your business is, if you don’t promote it and tell people you exist, it’s unlikely you will make many sales. Promotion is about attracting the right people to use and reuse your business. There are a number of techniques to use and they can be combined in various ways to create the most cost effective strategy for your needs. This can include online, branding, public relations and advertising.

The people in your business (e.g. salespeople, staff)

If you have employees in your business, they can influence the marketing of your products and services. Knowledgeable and friendly staff can contribute to creating satisfied customers, and can provide the unique selling experience that an organisation is often seeking. If an outstanding team provides a competitive advantage, then the quality of recruitment and training becomes essential to achieving your marketing objectives. Make sure you have processes and training in place to get the most out of your team.

The process represents the buying experience

Process represents the buying experience the customer gets when they buy your product or service. For example, the way a meal is presented and served in a restaurant, the reaction of a business to a complaint or the speed of delivery in a fast food outlet.A poor process can undermine the other elements of the marketing mix. Budget airlines, for example, may offer very competitive headline prices, but if the final price is inflated by additional charges such as baggage charges and administrative fees, customers may begin to feel they have been taken advantage of.

Try to document your key processes and procedures so your staff and suppliers know what to aim for.

This should include:

financial

information technology.

The physical environment where the good/services are presented

The physical environment where your products or services are sold and delivered can have a significant impact on how your customers' experience your business. The physical environment can be the quality of the furnishings in your consulting rooms, the design of your reception area or website. Creating a positive physical environment doesn’t have to be costly – a vase full of fresh flowers or a creative window display can make a big difference.

RR-F4/Marketing Essentials/Support/marketing 7.pptx

Marketing mix of Toyota

Product

There are numerous products which Toyota Company has managed to inject into the global market. For instance, we have numerous vehicles such as Corolla, Land Cruiser, RAV4, Lexus and Avensis. Toyota is proud to have left a remarkable mark in the global motorway. As a matter of fact, the company has managed to produce automotives that are able to cope with the impending fuel upsurges. As a result, Toyota has become a major competitor in the car industry. Embracing innovation has made the company launch products that meet consumer’s expectations.

Product

One of the key elements of service marketing for Toyota is its products that satisfy customers’ needs. According to Cusumano, the success of Toyota products and services has been pegged on the notion that they are diverse and intangible. They fit consumers’ tasks, meet their needs and expectations. It is important to note that Toyota products, cars and car accessories, are fast evolving in the market and therefore consumers continue enjoying new designs with time. The company has continued to enhance the quality of its products by factoring in consumers’ tastes and establishing effective links to address their demands

Price

Toyota Company has set prices proportionally to the consumer’s income in various parts of the world. The company has managed to produce cars for low and high-income people thus ensuring that its target consumers are not left out. This has given the company a competitive advantage since the sales continue to increase and maximum profits are realized. However, the pricing is highly dependent on demand and supply. Toyota’s brand, the experience its products give to its customers and its ambience are some of the factors that have determined its price offering. While it is hard to measure service and tangible costs of production, certain factors such as overheads and labour costs might determine the price of a product. Price determination for Toyota Company has been consumer friendly. This has been so while maintaining the highest possible quality. Indeed, Toyota products represent good value for clients’ money. Its prices represents the tenets of marketing concept as they are not cheap but represent quality, a consideration that gets clients to pay a little more

Place

Toyota Company has been able to identify numerous market segments where its goods are in high demand. As a result, its products have successfully penetrated most of the markets in Asia, Africa, America and Europe.

Place

Place as a marketing mix refers to an actual location where a company’s product is being sold. Toyota has vastly grown and this has seen it continue to reflect and review locations upon which its salespersons meet its clients. It sells its services and products in different places. This according to Causamo has the advantage of increasing sales. Toyota also uses online shops, telemarketing, and mail order as well as catalogues to facilitate greater understanding of the products by the consumers.

Promotions

Toyota Company has launched advanced promotional activities. Through advertisements, the company has shown its commitment to manufacturing environmentally friendly vehicles. Promotion tactics used have revealed the green image of Toyota locomotives that eventually increase their marketability.

Promotions

Drawing from Toyota promotion practice, it involves making small changes in the advertising of the product. Such changes cause a dramatic shift in results and enhance sales. To counter challenges of promotion, Toyota has continually developed new strategies, offerings, advertising approaches and new sales and marketing processes. It has used local medial such as the television, the news print, and even the radio to carry out promotions.

People

The company is keen to empower its entire workforce in the service and production line. This has made its workers to become creative and customer friendly. As a result, it has boosted the company’s self image and its ability to respond to consumers’ expectations. In a company, the managing director and the front line staff are some of the individuals who are relied upon to promote the image, products and services the company offers. According to Rajasekera, it is essential to have the right people to drive a business forward.

People

Management in Toyota has established the necessary supportive structures that have witnessed the growth of its products and offerings. Its leadership role in provision of the necessary management practices that lead to the best management practices in organizations. It is in this regard that the company assimilated its widely known Toyota Company Philosophy that calls for long term critical thinking as a basis for management decision making at all times. Therefore, its management structure has been greatly devolved to the lower levels where it has direct link with employees to monitor how they deal with clients.

Process

Toyota has embraced a lean production model hence it is able to produce just-in-time products. Proper management has reduced wastage and production cost thus increasing efficiency. This has enabled the company to capture a huge market share.

Physical evidence

In most companies, the interaction between consumers and manufacturers ends when a business deal is made. However, Toyota has maintained a tangible presence and a stable dealership with its new and old clients. This has ensured that consumers still get services from the manufacturer when a need arises. Customers have gained confidence with the company and this has enhanced more sales.

Physical evidence

Positioning in marketing is a unique component which according to Rajasekera involves understanding how clients think or regards a product. ?”This also extends to how people regard a company, its position in the market and its offerings. By the onset of the 21st century, the company had assimilated highly modernistic models of making its automobiles which saw its recent hybrid cars colonize the US market with ease. Today, it has over 15% of the US market share where over 2.5 million cars are sold annually. Globally, its employees are over 350, 000 in number while over 100 million others are indirectly affiliated to it in major garages and repair operations worldwide. These factors put in a competitive marketplace make Toyota a successful company.

Physical evidence

Packaging is an important marketing mix. It represents the body of a product. Many customers are normally attracted, impresses or repelled by the first impression of a product. Accordingly, Toyota has used unique and attractive packaging of its vehicles. This has also extended to its brochures, correspondence, waiting rooms, shops and offices as well as salespersons who look professional in every way.

RR-F4/Marketing Essentials/Support/Marketing Essentials - Lecture 1 Introduction.pdf

Lecture 1: Introduction of the Unit

Prepared by: Dr Gilbert Zvobgo

ICTM

 Aim of Session: To introduce the Unit’s content and the Unit

assessment

 1. Ground Rules

 2. Going over the Assignment Brief, including the assessment

criteria of the Unit

 3. Going over the Scheme of Work so that students see how

they could allocate their time wisely.

 4. Going over the Unit Specification so that students have an

overview of the syllabus (also available on ICON VLE).

 5. Library visit to help students check available books in their

Unit and to suggest those they want the College to purchase.

 6. Ask students to register with HN Global at:

Pearson Resources: Student Portal: HN Global (RQF)

https://www.highernationals.com/

 7. Help students understand the importance of academic

skills, academic writing, and referencing (citation and

references).

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 10.pdf

Marketing Essentials

Session 10 LO 3: Develop and evaluate a basic

marketing plan

Topic: Structure and Development of

Marketing Plans

Marketing Essentials

Session 10 Learning Objective:

 By the end of the session, students should

be able to evaluate marketing plan

The conceptual structure

Structure

 Environment Analysis -

 Marketing planning and control –

 Selecting Marketing mix –

 Segmentation and Targeting –

 Building profitable customer relationships

Market segmentation

 Separate group of customers that make

up a market is known as ‘market

segments’;

 Market segmentation is the division of

a market into distinct groups of buyers

who have distinct needs, characteristics,

or behavior and who might require

separate products or marketing mixes;

Differences in segments

 In a market, segments may vary from each other in terms of size and character;

 Each segment has its own distinct profile defined in terms of criteria or bases;

 Bases by which segments might be defined in both consumer and B2B markets tend to be different;

 Bases for segmentation in B2B markets include: product, applications, technology, purchasing policies, decision-making process and buyer-seller relationships;

 Bases for consumer markets are geographic, demographic, psychographic, behavioural, etc.

Implementation of segmentation -

targeting  Segmenting the market leads to another task for

the marketer, how many segments within the market the organisation intends to target and with what mix it would be appropriate or suitable for the marketer.

 There are three broad approaches available for targeting market or market segments:

 Concentrated strategy : having detailed knowledge of the target segment’s needs and wants, the organisation intends to specialise in serving one specific segment and therefore only one marketing mix to manage.

Targeting

 Differentiated strategy – a differentiated strategy involves the development of a number of individual marketing mixes, each of which serves a different segment. This helps to spread risk across the market.

 Undifferentiated strategy – it assumes that the market is one single homogenous unit, with no significant difference among customers within that market. So a single marketing mix is required that serves needs and wants within that market.

Target market

Market segment is a group of consumers

who respond in a similar way to a given

set of marketing efforts

Target marketing is the process of

evaluating each market segment’s

attractiveness and selecting one or more

segments to enter

Positioning

Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer

Market segmentation and target

market selection

Targeting example

 a) Undifferentiated product - Sea salt -

salt market for general purpose use

 b) Differentiated product – table salt,

cooking salt, iodised salt, low-sodium salt,

rock salt.

 c) concentrated product - low sodium

salt for health related purpose

Benefits of segmentation

 The customer – The needs and wants of consumers are not only related to product function but also psychological but also to psychological fulfilment. Customers may feel that a particular brand or supplier is more responsive to their expectations.

 The marketing mix – segmentation helps to define shopping habits, price sensitivity, required product benefits and features. Marketing mix is a tool to

understand the customer better.  The competition – The sue of segmentation tend to

help the organisation to achieve a better understanding

of itself and the environment within which it exists.

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 11 A.pdf

Marketing Essentials

Session 3 LO 3: Develop and Evaluate a Basic

Marketing Plan

Topic: Marketing Planning

Step 1

Learning objectives

 At the end of this session, the student

should be able to develop and evaluate a

basic marketing plan.

Key tasks of a basic marketing plan

 Setting Goals and Objectives

 Situational Analysis Tools and Techniques

 Creating a Marketing Strategy and

Allocation of Resources

 Monitoring and Control Measures

Setting Goals and Objectives

Introduction

 The marketing plan initially is a means of conveying the vision and organisational purpose for the future, i.e., company’s vision translated into objectives.

 Brassington and Pettit (2006) emphasise that ‘marketing strategy cannot be formulated in isolation. It has to reflect the objectives of the organisation and be compatible with the strategies pursued’.

 Marketers look at corporate goals and objectives in order to develop their own strategies. Objectives are influenced by many internal and external influences. Developing clear objectives is critical to ensuring the overall effectiveness of the organisation.

Setting Goals and Objectives

Vision and Mission

 A key issue when setting objectives is to consider its relevancy in achieving overall vision and mission.

 Setting objectives is an essential step in marketing planning and is central to developing effectiveness and competitive advantage. Objectives are set to be achieved. Objectives are closely related to the organisation’s resource capacity, which include the financial assets and facilities, human resources, production capacity and other relevant items.

Setting Goals and Objectives

SMART objectives

The objectives are set to be SMART, to be purposeful in operating the organisation towards corporate goals.

 S - Specific Should be succinct and provide clarity as to what is to be achieved

 M - Measurable Should identify targets that can be measured and monitored

 A - Aspirational Should be challenging but achievable, and should motivate staff

 R - Realistic Should be based on sound research. Should be achievable given the human, financial and other resources available

 T - Time bound A time scale should be set for the achievement of the objective for performance monitoring.

Setting Goals and Objectives

Corporate goals and objectives

 Organisations set their main goals and objectives. At the corporate level management are concerned with the overall long-term profitability and objectives that are usually expressed in financial terms.

For example:

 To achieve a 15% return on equity

 To increase operating profits by 20%

 To achieve return on investment of 25%

 To achieve a return of 20% on capital employed (ROCE)

 To achieve growth of 10% in earning per share (EPS)

Setting Goals and Objectives

Marketing objectives

 Marketing objectives need to be developed to support the corporate goals and objectives and to ensure the corporate objectives are achieved.

 These marketing objectives will be mainly concerned with products and markets. Therefore, it is likely that the typical marketing objectives will focus on:

 Increasing sales of existing products into existing markets

 Launching new products into to existing markets

 Launching existing products into new markets

 Launching new products into new markets

Setting Goals and Objectives

Marketing objectives

 These aims need to be developed into quantifiable and

measurable objectives. These should be SMART (

specific and target date to achieve). All of them must

relate to the overall corporate objectives. All of them

relate to overall corporate objectives.

 To increase sales by 15% by 2018

 To increase market share of product X by 10% by 2018

 To increase customer retention by 25% by 2012

 To increase the number of new products per year from

2 to 5 by 2018

Setting Goals and Objectives

Operational objectives

(Marketing mix objectives)

 These are related to the marketing mix.

These are more tactical and operational.

This are will include objectives related to

the product mix, pricing, distribution and

promotional mix aspects as well as

people, process and physical evidence

elements of 7Ps of marketing mix.

Setting Goals and Objectives

Levels

A. Corporate 2017-2020 3 years

Objectives

 Increasing operating profit by 15 %

Strategy

 By increasing market share to 20% in new markets and existing markets

Levels

B. Marketing 2017-2020 3 years

Objectives

 Achieve 20 % market share in summer and spring holiday seasons

Strategy

 By providing best range of products to key market segments . By providing high service standards. Promote effectively

Setting Goals and Objectives

C. Operational – Marketing Mix (Ps)

Level

Product mix

Objective

Provide wide range of products

to key target market segments

Strategy

Upgrade facilities and services with

information updates

Setting Goals and Objectives

C. Operational – Marketing Mix (Ps)

Level

Promotion mix

Objectives

Create awareness of the new products/services and

benefits or change mix

Strategy

Adopt new media strategy

Setting Goals and Objectives

 C. Operational – Marketing Mix (Ps)

Level

People and Physical Evidence mix

Objectives

 Design and develop new staff skills and create an

environment which conveys quality or change mix

Strategy

Develop energetic work force and new look work

environment

Setting Goals and Objectives

C. Operational – Marketing Mix (Ps) Level

Process/Service Mix

Objective

Develop customer friendly apps and

excellent service

Strategy

Retrain staff

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 11 B.pdf

Marketing Essentials

Session 11 LO 3: Develop and Evaluate Basic

Marketing Plan

Topic: Marketing Planning

Steps 2 3 4

Learning Objectives

 At the end of this session, the student

should be able to develop and evaluate a

basic marketing plan.

Situation Analysis – Tools and

Techniques  The situation analysis looks at both the macro-

environmental factors that affect many firms within the environment and the micro- environmental factors that specifically affect the firm. The purpose of the situation analysis is to indicate to a company about the organizational and product position, as well as the overall survival of the business, within the environment. Companies must be able to summarize opportunities and problems within the environment so they can understand their capabilities within the market

Situation analysis techniques

The situation analysis consists of several

methods of analysis:

These include:

 Audit - SWOT analysis

 PESTEL analysis and

 Porter’s Five Forces Analysis

Audit - SWOT (Strength, Weakness, Opportunity

and Threat )Analysis

 A SWOT analysis is a method under the situation analysis that examines the Strengths and Weaknesses of a company (internal environment) as well as the Opportunities and Threats within the market (external environment).

 A SWOT analysis looks at both current and future situations, where they analyze their current strengths and weaknesses while looking for future opportunities and threats. The goal is to build on strengths as much as possible while reducing weaknesses. A future threat can be a potential weakness while a future opportunity can be a potential strength.

 This analysis helps a company come up with a plan that keeps it prepared for a number of potential scenarios

SWOT analysis SWOT analysis elements:

 Strengths could include:

 personal and flexible customer service

 special features or benefits that your product offers

 specialist knowledge or skills

 Weaknesses could include:

 limited financial resources

 lack of an established reputation

 inefficient accounting systems

 Opportunities could include:

 increased demand from a particular market sector

 using the Internet to reach new markets

 new technologies that allow you to improve product quality

 Threats could include:

 the emergence of a new competitor

 more sophisticated, attractive or cheaper versions of your product or service

 new legislation increasing your costs

 a downturn in the economy, reducing overall demand

Having done your analysis, you can then measure the potential effects each element may have on your marketing strategy.

PESTEL analysis

A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro- environmental (external marketing environment) factors that have an impact on an organisation.

PESTEL stands for:

 P – Political

 E – Economic

 S – Social

 T – Technological

 E – Environmental

 L – Legal

Pestel elements

Porters Five Forces Analysis

The ultimate purpose of the Porter's five forces model is to help businesses compare and analyze their profitability and position with the industry against indirect and direct competition.

 The threat of new entrant: New entrants affect the company’s profits as the consumers have more variety to choose from.

 Bargaining power of buyers: The companies influence on the buyer to purchase their product or how much the buyer depends on the product being produced by the firm.

 Threat of substitute product of services: more than one firm producing similar or the same product or service.

 Bargaining powers of suppliers: Company dependence on resources the suppliers provide to create their product or services.

 Rivalries among existing competitors: Rivals fighting to be dominant in the market, to stay in business and maximize profit.

Porter’s Five Forces

Step 3

Creating a Marketing strategy and allocation of resources

Tools For Allocating Resources

 BCG (Boston Consulting Group) product portfolio matrix is one of the tools that strategists can use to link resource allocation decisions to choice of strategy.

 Most organizations will seek to quantify the allocation process and use some form of budgeting. Budgets are financial statements of the resources required to achieve a set of finite objectives or put into action a formulated strategy.

 Pearce and Robinson distinguish between three types of budget: capital budgets, revenue budgets, and expenditure budgets.

 Resource allocation as expressed in the budget needs to be carefully linked to strategy

Resource allocation – BCG matrix

 Allocation of Resources – Growth/Share Matrix

 Marketing strategy concerns the allocation of resources to businesses that a firm wants to be in and the allocation of resources to the marketing-mix variables for each brand across businesses.

 One approach to the analysis of product/market portfolios is to represent the various businesses in which the firm operates on a two-dimensional map. This map offers diagnostic information on the position of the firm and shows how the various businesses in which the firm is involved fit together.

 The output of the BCG matrix classifies businesses or brands or products into one of four quadrants.

 Each of these four quadrants are defined by the intersection of two marketing metrics – namely the market growth rate (a measure of market opportunity and potential) and relative market share (a measure of competitive strength).

 The four quadrants that are used to classify the businesses or brands are designed to give some guidance to strategy and resource allocation across the full portfolio – as suggested by their names.

BCG Matrix

Marketing budget

 A marketing budget, in simple terms, is

a financial plan and estimate of the costs

involved in carrying out

any marketing activities to promote

your business and/or product (e. g

advertising, website

development,marketing staff salaries, PR,

events etc.)

Marketing budget –pro forma

Markering strategy options

 The Ansoff Matrix is a strategic

planning tool that provides a framework

to help executives, senior managers, and

marketers devise strategies for future

growth.

 The matrix will give managers four

possible scenarios, or strategies for future

product and market activities

Creating a marketing strategy

Marketing strategy options

 Market Penetration

This strategy focuses on increasing the volume of sales of existing products to the organisation’s existing market.

Questions asked:

 How can we defend our market share?

 How can we grow our market?

 Product Development

This strategy focuses on reaching the existing market with new products.

 Questions asked:  How can we expand our product portfolio by modifying or

creating products?

Marketing strategy options

 Market Development

This strategy focuses on reaching new markets with existing products in the portfolio.

Questions asked:

 How can we extend our market?

 Through new market sectors?

 Through new geographical areas?

 Diversification

This strategy focuses on reaching new markets with new products. Diversification can be either related or unrelated.

 Related Diversification:The organisation stays within a market they have familiarity with.

 Unrelated Diversification:The organisation moves into a market or industry they have no experience with. This is considered a high risk strategy.

So that’s the Ansoff matrix, you can see how it visualises your current strategic position and offers four possible routes to take next.

Step 4 : Marketing Planning - monitoring and

control measures – marketing interface

Marketing Planning and Control

Marketing planning – monitoring and control

process

Monitoring and control measure

Sales analysis It is the analysis by a company of whether it has met its sales goals within a certain time period. Sales analysis is a straightforward business term. It refers to the process of reviewing different aspects of a company's sales, including trends in the market and the effectiveness of certain sales strategies and personnel. (comparing sales targets to actual sales and accounting for discrepancies).

Monitoring and control measure

 Market-share analysis

Comparing the country's "sales" with those of its competitors. The country should also compare its own sales to the total sales in the global market and to sales within its "market segment" (neighbouring countries, countries which share its political ambiance, same-size countries, etc.). Market share analysis shows a business how well it is reaching customers in each neighbourhood across its sales region.

Market share analysis shows how well the organization is doing vis-a-vis competitors. The first step is to determine market share, either by absolute measures (overall market share) or relative to main competition (relative share), or to leading competitor (relative to market leader share).

Monitoring and control measure

Sales Force Efficiency

1. Average number of calls per salesperson per day. Sales managers need to monitor the following key

indicators of efficiency in their territories: 2. Average sales call time per contact. 3. Average revenue per sales call. 4. Average cost per sales call. 5. Entertainment cost per sales call. 6. Percentage of orders per 100 sales calls. 7. Number of new customers per period. 8. Number of lost customers per period. 9. Sales force cost as a percentage of total sales.

Monitoring and control measures

Sales Promotion Efficiency

To improve sales promotion efficiency, management should record the costs and sales impact promotion. Management should watch the following statistics: 1. Percentage of sales sold on deal. 2. Display costs per sales. 3. Percentage of coupons redeemed. 4. Number of inquiries resulting from a demonstration.

Monitoring and control measures

Distribution Efficiency Management needs to search for distribution economies in inventory control, warehouse locations, and transportation modes. It should track such measures as: 1. Logistics costs as a percentage of sales. 2. Percentage of orders filled correctly. 3. Percentage of on-time deliveries. 4. Number of billing errors.

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 5.pdf

Marketing Essentials

Session 5 LO 2: Compare ways in which organisations

use elements of the marketing mix

(7Ps) to achieve overall business

objectives

Topic: The 7Ps marketing mix

Marketing Essentials

Session 4 Objectives of the Session

By the end of the session, students should have

an understanding of the marketing mix (7Ps)

4.1 Marketing management process.

All marketing management tasks boil

down to two areas:

 Identifying and anticipating customer

segment needs; and

 Satisfying customer needs in such a way

to achieve the organisation’s objectives

for profitability, survival and growth.

Identifying customer needs

 Understanding the nature of customers and their needs and wants is the first step in marketing process. Implicit to the idea of identifying the customer, the marketers want that not only fulfil basis functional purpose, but also provide positive benefits, sometimes of a psychological nature. Identifying needs of customer groups helps marketer to explore criteria and variables that distinguish one group of buyers from another. Once that is done, the marketer can then make sure a product offering is created that matches the needs of one group as closely as possible. Grouping customers according to their needs, characteristics and benefits sought helps marketers in finding gaps in the market that are not met by existing range of goods and services.

Satisfying customer needs

 The next step for the organisation is to act on the information of customer group needs, benefits sought and potential gaps in the market. Acting on the information means the organisation would initiate to develop and implement marketing activities that actually deliver something of value to customers. The means by which such ideas are turned into reality is the marketing mix.

 The marketing mix creates an offering for the customer. Organisation’s effort in mix and combination are important because successful marketing relies as much on interaction and synergy between marketing-mix elements as it does on good decisions within those elements themselves.

Fig 4.1 High physical content (tangible product) versus high service

content (intangible product) spectrum

Fig 4.2 The traditional marketing mix (4Ps)

Definition of Marketing Mix

 Traditional idea of marketing mix include four elements of marketing, such as, product, price, place and promotion.

 According to Philip Kotler

 “Marketing Mix is the set of controllable variables that the firm can use to influence the buyer's response”. The controllable variables in this context refer to the 4 'P's (product, price, place (distribution) and promotion).

Product

 In marketing mix term a product is what to make, when to make it, how to make it and how to ensure that it has a long and profitable life. Product in marketing mix term is not just a physical thing, it also includes important elements, such as after-sale service, guarantees, installation and fittings, etc. For fast moving consumer goods (fmcg) part of product’s attractiveness is brand image and package style. In B2B product, emphasis is more likely on fitness for functional purpose, quality and peripheral services ( technical support, delivery, customisation, etc.).

Product and Service

 A formal definition of product states that (Brassington and Pettitt, 2013, p.206):

 A product is a physical good, service, idea, person, or place that is capable of offering tangible and intangible attributes that individuals and organisations regard as so necessary, worthwhile and satisfying that they are prepared to exchange money, patronage or some other unit of value in order to acquire it.

Difference between product and services

 A product is a powerful and varied thing. The definition include tangible products ( bottle of water, aircraft engines), intangible products ( services such as hairdressing or legal or accounting services) and ideas (public health messages). Both tangible (physical) and intangible (service) product can be broken down into bundle of benefits meaning different things to different buyers. The basic anatomy of a product is shown as four concentric rings representing the core product, the tangible product, the augmented product and finally the potential product.

Product mix, Branding, NPD and PLC

 Product mix

 The product mix is the total sum of all products and variations offered by an organisation ( example, Nestle: confectionery to coffee to canned goods). Product range include product line, product, item, product line length, product line depth, product mix width, etc.

 Branding and importance

 Branding include brand name, logo, trade name, trade mark and brand mark. Branding help customers in quick product identification, understanding features and benefits, reducing risk in purchasing and brand loyalty.

 New product development (NPD)

 In order to create and maintain competitive advantage through innovation and better serving the customers’ changing needs and wants, organisations apply skilful management to ensure that best ideas are successfully developed into commercially viable and potentially profitable products with a future. NPD efforts include, design, quality, performance, durability, reliability, style and guarantees.

 Product lifecycle (PLC)

 Based on the pattern of sales and profits (growth and decline) an individual product or brand can experience four main stages of sales and profit growth and decline, such as, introduction, growth, maturity and decline.

Price mix

 Price is the value that is placed on something. For a marketing company, price directly generates the revenue that allow organisations to create and retain customers at a profit. Igt is also used as a communicator, a bargaining tool, and as a competitive weapon. The customer can use price as a means of comparing products, judging relative value for money or judging product quality.

 Pricing benefits

 Customers look at price as the expected benefits of the product which include the goods at a price that is: functional, quality, operational, financial, personal or psychological benefits.

 Pricing strategies

 This include penetration pricing, skimming pricing, competition pricing, product line pricing, bundle pricing, psychological pricing, ;premium pricing, optional pricing, cost plus pricing, cost based pricing, mark-up and mark- gown pricing.

 Pricing tactics

 This included price discounts, quantity discounts, cumulative discount, negotiated price, promotional price, trade in price, zone based or geographic pricing, etc.



Place Mix

 Place mix included the range of different intermediaries and the roles they play in getting goods to the right place, at the right time for the end buyer as well as physical distribution issues involved in making it all happen.

 Marketing Channel

 A marketing channel can be defined as the structure linking a group of individuals or organisations through which a product or service is made available to the consumer or industrial user.

 Channel structures for consumer goods include : producer- consumer (direct supply), producer-retailer-consumer (short channel), producer-wholesaler-retailer-consumer (long channel), producer-agent-wholesaler—retailer-consumer.

 Channel structure for B2B goods include : manufacturer- user, manufacturer-distributor-user, manufacturer-agent-user, manufacturer-agent-distributor-user.

Consumer goods channel

Fig 4.3

Channel diagram : B2B

Fig 4.4

Supply chain and logistics management

 All the activities, associated with the sourcing, procurement, conversion and logistics management, comes under the supply chain management. Above all, it encompasses the coordination and collaboration with the parties like suppliers, intermediaries, distributors and customers.

 Logistics Management is a small portion of Supply Chain Management that deals with the management of goods in an efficient way through efficient handling of warehousing, transportation and shipping, and financing.

The process of integrating the movement and maintenance of goods in and out the organization is Logistics

The coordination and management of the supply chain activities are known as Supply Chain Management.

Supply chain management

Fig 4.5

Promotional Mix

 The promotion mix is the direct way in which an organisation attempts to’ communicate with various target audiences. It consists of five main elements. Advertising represents non-personal mass-communication; personal selling cover face-to-face, personally tailored messages. Sales promotion involves tactical , short-term incentives that encourage a target audience to behave in a certain way. Public relations is about creating and maintaining good- quality relationships with many stakeholder groups (media, shareholders, trade unions) , not just with customers. Finally direct marketing involves creating one-to-one relationships with individual customers, in mass markets, involving e mailing, social media, digital marketing.

 Marketing communications objectives must be precise, practical and measurable. They can be cognitive (creating awareness and disseminating knowledge, affective ( creating and manipulating brand image), behavioural ( stimulating consumer to purchase action), or corporate ( building and enhancing corporate image).

 Different promotional tools are effective for different types of objectives. While advertising might be more appropriate for cognitive objective, personal selling and sales promotion could be better for behavioural objectives. Direct marketing can be very useful for creating and enhancing longer-term relationships with customers.

Elements of promotional mix

Fig 4.6

Additional 3Ps for product led marketing organisations

 People

 The role of people in tangible product led marketing organisation has very crucial role in customer satisfaction. Role of customer service on the store (supermarket or departmental stores) add value to the marketing offerings and go beyond product offering.

 Processes

 In product led marketing organisations, manufacturing or preparation process such as fast food or regular restaurants involve people, equipment and their performance to ensure quality, time management and customer service meeting customers’ expectations. This also involve self- service check outs in supermarkets, preventing waiting time in a normal queue and ensuring staff assistance when needed.

 Physical evidence

 Consumer goods (fmcg) retailers with traditional 4Ps approach and within place element , increasingly care for atmosphere, ambience, image and design to attract customer attention. Large consumer goods stores or shopping malls are facilitated with car parks, cash dispensers, restaurants, rest rooms , etc. These additional 3 Ps in product-led marketing organisations add value to their offerings.

Business implications

 These combined effort ( 4Ps plus 3Ps) of

a physical product led marketing

organisation enables them to attain

competitive edge or differential

advantage. This could help potential

customers to recognise and value the

company and can distinguish them from

competitors.

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 6.pdf

Marketing Essentials

Session 6 LO 2: Compare ways in which organisations

use elements of the marketing mix

(7Ps) to achieve overall business

objectives

Topic: The 7Ps marketing mix: the additional

3 Ps

Marketing Essentials

Session 7 Objective of the Session

By the end of the session students should be

able to see the application of the additional

marketing mix elements (3Ps)

Fig 1: Product-service spectrum

Fig 2: The service marketing mix 7Ps

Seven elements of services marketing mix

Product

The traditional marketing mix consists of 4 Ps. For service products, however, additional elements of the marketing mix are necessary to reflect the special characteristics of the services marketing.

 From a suppliers perspectives many services can be treated like any other physical products. The supplier develops a range of products, each of which represents profit earning opportunities. A hotel company might treat each of its hotels as separate product with different product management requirements. Many of the product mix concepts are equally applicable to services, such as: positioning, branding, designing a new services, and managing the product life cycle.

Price

 Because services are intangible, their

pricing can be difficult to set or justify.

However, prices of some services are

controlled by bodies other than the

service provider. The amount that dentists

charge for work under NHS is

determined by the central government.

Other service providers are completely

free to decide their own prices.

Place (Dstribution)

 Services are often supplied direct from the provider to the customer because production and consumption are simultaneous. Direct supply allows the provider to control what is going on, to get direct feedback and interaction with customers. Direct supply can take place from business premises, such as solicitor’s office, or hairdresser’s saloon. Some services can also supplied by telephone such as banking service or insurance.

Promotion

 Marketing communication objectives,

implementation and management for

services are largely the same as for any

other product. Since service providers

are small businesses, they rely on

advertising in local newspapers, door-to-

door leaflets drops and price promotions,

and also word-of-mouth communications.

People  Services depend on people and interaction between people,

including the service provider’s staff, the customer and other customers. As the customer is often a participant in the creation and delivery of service product, there are implications for service product quality, productivity and staff training. Staff ability in providing reliable service is a vital concern for service provider.

 Services depend on people to perform them, creating and delivering the product as the customer waits. If the customer feels comfortable with a particular service provider , trusts them and has support with them , this could result into a relationship that a competitor would find hard to break into. This people add value and a dimension to the marketing package way beyond the basic product offering.

 Skills , attitude and behaviour of support personnel in delivering product or service and their ability in customer interaction playing role as ‘help desk’ adds value to the marketing company.

Physical evidence

 Physical evidence comprise the tangible elements that support the service delivery, and offer clues about the positioning of the service product or give the customer something solid to take away with them to symbolise the intangible benefits they have received.

 Atmosphere, ambience, image and design of premises add value to the service provider.

Processes

 Because the creation and consumption of service are usually simultaneous, the production of the service is an important part of its marketing as the customer either witnesses it or is directly involved in it. The service provider needs smooth, efficient customer-friendly procedures.

 Because services are manufactured or provided and consumed on the spot, and because they do involve people and the performance of their skills, built-in quality control can enhance customer confidence and expectations and eventually higher levels of satisfaction.

 Banks, hospitals, hotels, education and training providers, retailers of financial services, , fast-food outlets, hairdressers, professional service providers such as solicitors, and management consultants emphasize quality check and control their services to ensure customer acceptability.

Importance of additional 3Ps

Three additional elements of marketing mix for service products reflect the special characteristics of services marketing, such as:

 People - whether service providers or customers who participate in the production and delivery of the service experience;

 Physical evidence – the tangible cues that support the main service product. These include facilities, the infrastructure, and the products used to deliver the service;

 Processes – the operating process that take the customer through from ordering to the manufacture and delivery of the service.

 Any of these extra marketing mix elements can enhance or detract from the customer’s overall experience when consuming the service.

 The marketing in both situations tries to create a differential, attractive proposition for customer, ensuring that what ever is offered meets their needs and expectations.

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 7.pdf

Marketing Essentials

Session 7 LO 2: Compare ways in which organisations

use elements of the marketing mix

(7Ps) to achieve overall business

objectives

Topic: Achieving overall business objectives

Marketing Essentials

Session 6 Objectives of the Session:

By the end of the session, students should

understand the importance of the extended

marketing mix in achieving overall business objectives

The shift from 4Ps to the 7Ps and the

significance of the extended marketing mix

 Fig 1 4Ps of mix and target markets

Fig 2: 7Ps of mix and target markets included

needs of service sector components.

Shift from 4Ps to 7Ps

 The traditional 4 Ps served as tools for focusing on market segment and target market requirements and developing differential strategies to increase market share among marketers. However, with the rise of service products and service components in the economy, it is now considered the four Ps are not always sufficient to understand service sector customer needs. The 4Ps perhaps cannot fully describe marketing activities in the emerging service sector in particular. So an extended marketing mix of 7 Ps was proposed by Booms and Bitner (1981). The extended marketing mix added the role of people, processes and physical evidence to the traditional 4Ps so that the new extended tool can be used to analyse and develop marketing strategies addressing needs of customer groups in both product and service markets.

An overview of the marketing planning process ( Analysis, Planning,

Implementation and Control) and marketing strategy

Marketing mix fits well with differentiated and concentrated

marketing strategy addressing needs of a segment suggesting

different marketing activities for different segments or target

markets. Fig 4 Marketing mix and target segment

Marketing planning process ( Analysis, Planning,

Implementation and Control) and marketing strategy

Marketing mix in wider framework of marketing planning

 Marketing mix as a set of controllable variables influencing buyers response largely guides individual marketing activities. Indeed, marketing activities must be viewed or reviewed with in the context of a well planned and well designed and consistent marketing mix. Achieving target market goals of a well planned marketing mix is viewed as an outcome of a wider framework of strategic marketing planning, implementation and control.

Marketing mix strategy and company’s business

objectives : Porter’s Matrix

Marketing strategy

 Marketing mix as a set of controllable tool

help marketers to plan, implement and

control marketing operations through

strategy focus such as: differentiation focus

or cost focus to maintain competitive edge.

Overall business objectives in competitive

product or service markets can be achieved

better through strategic marketing planning

focusing on differentiation or cost leadership

as proposed by Michael Porter.

RR-F4/Marketing Essentials/Support/Marketing Essentials - Session 9.pdf

Marketing Essentials

Session 9 LO 3: Develop and evaluate a basic

marketing plan

Topic: Marketing planning

Marketing Essentials

Session 9 Learning Objective

 By the end of the session students should

be able to write a simple marketing plan

Market controls and evaluation

 As marketing plans are being implemented, they have to be monitored and controlled;

 Control and evaluation are both essential if managers are to ensure that the plans are being implemented properly and that the outcomes are those expected;

 Control and evaluation can be either short- term(operational) or a longer-term (strategic) perspective;

 Operational control assesses the day-to-day success of marketing activities. In the short term, control can be monitored

 Monitoring can be done on a daily basis through reviewing orders received, sales, stock-turn or cash flow, etc; while longer-term strategic control focus on monitoring issues such as the emergence of trends and ambiguities in the marketing environment.

Evaluating and monitoring marketing plans using

appropriate control and evaluation techniques

 Marketing Evaluation

 Techniques used after the

marketing plan period to

analyze success in achieving

individual marketing

objectives and to more broadly

assess the entire

organization’s marketing

efforts

Figure 13.10 Marketing control

Evaluating and monitoring marketing plans using

appropriate control and evaluation techniques

Control Process for the

Marketing Plan

a. Setting standards based on

plans

b. Measuring performance

against standards

c. Correcting deviations from

standards and plans

Evaluating and monitoring marketing plans using

appropriate control and evaluation techniques

Marketing Evaluation Techniques

a. Sales analysis

b. Market-share analysis

c. Marketing cost and profitability analysis

d. Efficiency ratios

e. Marketing-effectiveness rating review

f. Marketing audit

Evaluating and monitoring marketing plans using

appropriate control and evaluation techniques

Sales analysis It is the analysis by a company of whether it has met its sales goals within a certain time period. Sales analysis is a straightforward business term. It refers to the process of reviewing different aspects of a company's sales, including trends in the market and the effectiveness of certain sales strategies and personnel -comparing sales targets to actual sales and accounting for discrepancies).

Market-share analysis -Comparing the country's "sales" with those of its competitors. The country should also compare its own sales to the total sales in the global market and to sales within its "market segment" (neighbouring countries, countries which share its political ambiance, same-size countries, etc.). Market share analysis shows a business how well it is reaching customers in each neighbourhood across its sales region. Market share analysis shows how well the organization is doing vis-a-vis competitors. The first step is to determine market share, either by absolute measures (overall market share) or relative to main competition (relative share), or to leading competitor (relative to market leader share).

 Efficiency control Sales Force Efficiency 1. Average number of calls per salesperson per day. Sales managers need to monitor the following key indicators of efficiency in their territories: 2. Average sales call time per contact. 3. Average revenue per sales call. 4. Average cost per sales call. 5. Entertainment cost per sales call. 6. Percentage of orders per 100 sales calls. 7. Number of new customers per period. 8. Number of lost customers per period. 9. Sales force cost as a percentage of total sales.

 Sales Promotion Efficiency To improve sales promotion efficiency, management should record the costs and sales impact promotion. Management should watch the following statistics: 1. Percentage of sales sold on deal. 2. Display costs per sales. 3. Percentage of coupons redeemed. 4. Number of inquiries resulting from a demonstration.

 Distribution Efficiency Management needs to search for distribution economies in inventory control, warehouse locations, and transportation modes. It should track such measures as: 1. Logistics costs as a percentage of sales. 2. Percentage of orders filled correctly. 3. Percentage of on-time deliveries. 4. Number of billing errors.

 Market Profitability Analysis This consists of starting from the target profit plan and then applying the control measure - marketing profitability analysis

 Profitability analysis mainly has a focus on three criteria • Customer profitability analysis (CPA) • Customer product profitability analysis • Increasing company profitability • Implementing TQM

RR-F4/Marketing Essentials/Support/Marketing Essentials Session 2.pdf

01/05/2017

Session 2

LO 1: Explain the role of

marketing and how it interrelates

with other functional units of an

organisation

Topic: Definitions and the marketing

concept

1.1 Definitions of marketing

The following are two widely accepted definitions of marketing. The first one is preferred by the Chartered Institute of Marketing (CIM) of the U.K., and the second one is offered by the American Management Association (AMA):

 Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. (CIM, 2001)

 Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (AMA, 2007)

01/05/2017

Marketing Definitions

Philip Kotler, one of the leading global author of marketing , has offered the following definition:

 Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

(Kotler 2013, Marketing Management)

All definitions are attempts in capturing key ideas of marketing and have some common elements emphasizing the nature of marketing.

1.2 The nature of marketing

The above definitions have some common

points on the nature of marketing:

 Marketing is a management process Marketing as a business function involve

management skills requiring managers involvement in planning and analysis, resource allocation, control and investment in terms of money, appropriately skilled people and physical resources. It also requires efforts in implementation, monitoring and evaluation to carry out all tasks efficiently and successfully.

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Nature of Marketing

 Marketing is about giving customers what they want

Marketing activities mainly focus towards the customer or the end customer of the product or service. Marketing activities are geared towards fulfilling customers requirements so that they obtain what they want and need, to avoid failure of the organization.

Nature of Marketing

 Marketing identifies and anticipates

customer requirements

Marketing is a set of activities that

identifies and anticipates customer

requirements largely through market

research and assessing the

information generated.

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Nature of Marketing

 Marketing fulfils customer requirements

profitably or cost effectively

The marketer has to work within the

resource capabilities of the organisation ,

and specifically work within the agreed

budgets and performance targets set for

the marketing function. Moreover, most

businesses exist to make profits, and

thus profitability is a legitimate concern.

Nature of Marketing

 Exchange that have value to

customers , clients, partners and

society at large

The basic idea of marketing is an

exchange process to create value.

The organization offers a product or

service, and the customer offers a

sum of money in return for it. (see

Figure 1.1)

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Figure 1.1: Marketing as an Exchange

Process

Nature of Marketing

 Pricing, promotion and distribution of

ideas, goods and services

Marketer can influence volume of

exchanges by designing the product ,

setting sensible, acceptable and

justifiable prices, creating awareness

and preferences, and ensuring

availability and services.

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Nature of Marketing

 Society at large

Marketing activities include exchanges

for society at large. This includes

charities, non-profit exchanges and

even situations where ideas rather

than money are exchanged.

Criticisms of Marketing

 Both the CIM and AMA definitions of

marketing, despite their popular acceptance, are being criticized for failing to reflect the realities and difficulties facing marketing in the twenty-first century. It could be argued that both definitions could go further in highlighting the:

 drive for customer-orientation,

 social marketing themes,

 relationship building and

 relationship maintenance; that are considered now emerging characteristics of many markets (Gronroos, 2009).

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Relationship marketing

 In B2B markets, exchanges could involve a

complex web of interactions between the staff of both organisations, each seeking to build enduring buyer-seller relationships through which they work together for their mutual benefits. A relationship-focused approach to marketing describes a network of communications and contacts between the buyer and seller over time. Marketing, therefore, is part of an interactive process between people, over time, of which relationship creation, building and management are vital cornerstones throughout the supply chain (Gronroos, 2009).

Wider definition of marketing

 A definition of marketing that includes

both the AMA and CIM definitions, but

still embraces the evolving relationship

orientation. According to Gronroos (

2009):

 Marketing is to establish, maintain and

enhance relationships with customers

and other partners, at a profit, so that the

objectives of the parties involved are

met. This is achieved by mutual

exchanges and fulfilment of promises.

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1.3 The development of the marketing concept ,

including current and future trends

 The basic idea of marketing as an

exchange process has evolved

through various business orientations,

which include: production, product,

selling, marketing, and ethical and

sustainable marketing. The following

table summarises the development of

marketing concept over time:

Table 1 : Development of Marketing

Orientations

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Production orientation

 The main assumption of production

orientation is that the market is

completely price sensitive, which

means that customers are only

interested in price as the

differentiating factor between

competing products and will buy the

cheapest. Main focus is to make the

product affordable and available.

Product orientation

 The product orientation assumes that

consumers are primarily interested in

the product itself, and buy on the basis

of quality. Customers do not buy

products, they want solution to their

problems or needs.

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Sales orientation

 The basis for the sales orientation is

that customers are inherently reluctant

to purchase, and need every

encouragement to purchase sufficient

quantities to satisfy the organisations’

needs.

Marketing orientation

 The organisation that develops and

performs its production and marketing

activities which the needs of buyer

driving it all , and with the satisfaction of

that buyer as the main aim, is marketing

oriented. The assumption is that

customers are not necessarily price

driven, but are looking for the total

offering that best fits their needs, and

therefore the organisation has to define

those needs and develop appropriate

offerings.

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Current and future trends : emergent

marketing

Corporate social responsibility: societal and

ethical marketing

 Corporate social responsibility (CSR) suggests that organisations should not

only consider their customers and

their profitability, but also the good of

the wider communities, local and

global within which they exist.

The European Commission

defines CSR as:  The voluntary integration of social and

environmental concerns in to business operations and in to their interaction with stakeholders. ( European Commission, 2010)

 Marketing within a CSR context is concerned with ensuring that organisations handle marketing responsibility, and in a way that contributes to the well-being of society

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Towards sustainable marketing

 Best practice of CSR in nits widest

sense is the idea of sustainable

development. Sustainability is not just

concerned with environmental and

ecological issues, but also with social,

economic and cultural development of

society.

Sustainable marketing is defined as

(Brassington and Pettitt, 2013) :

 The establishment, maintenance and

enhancement of customer

relationships so that the objectives of

the parties involved are met without

compromising the ability of future

generations to achieve their own

objectives.

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1.4 How the external environment influences

and impacts upon marketing activity

 The External organisational environment

There are many people, groups, elements and forces that have the power to influence, directly and indirectly, the way in which organisations conducts its business. The organisation environment include both the immediate operating environment and the broader issues and trends that affect business in the longer term.

Figure 1.2 Complexity of the external world in which the

organisation has to operate.

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Current and potential customers

 It is essential for marketing

organisations to be able to locate

customers, find out what they want,

and then communicate its promises

with them. They also need to deliver

the promises, and follow up to ensure

that customers are satisfied.

Competitors

 Customers will make comparisons

between different offerings and

messages of competing companies.

The organisation will monitor what the

competitors are actually doing now

and try to anticipate what they will do

in the future in order to develop,

innovate and update their own

measures in advance.

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Intermediaries

 Intermediaries of channel entities

often provide invaluable services in

getting goods from manufacturers to

the end buyer. The organisation,

therefore, must think carefully about

how best to distribute goods, and

build appropriate relationships with

intermediaries.

Suppliers

 Supplier chain link is crucial to

organisations success in marketing effort. Losing a key supplier of components or raw materials can mean the production flow is interrupted, or that a lower-quality or more expensive substitution has to be made. Therefore, choice of suppliers, negotiation of terms and relationship building are considered crucial for organisation’s marketing success.

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Elements of External Environment of Marketing

Figure 1.3 : External Environment of Marketing

RR-F4/Marketing Essentials/Support/Marketing Essentials Session 3.pdf

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Marketing Essentials

Session 3

LO 1: Explain the role of marketing

and how it interrelates with other

functional units of an organisation

Topic: The role of marketing

Figure : 2.1 The structure and operations

of the marketing departments

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The structure and operations

of the marketing departments

 There are many relationships that matter and that need to be managed if the organisation is to conduct its business successfully. The main responsibility for creating and managing these relationships lies with the marketing function. As well as fostering and maintaining relationships with external groups and forces, the marketing function has to interact with other functions within the organisation. These include finance, purchasing, production, and research and development and engineering.

Finance function

 The finance function sets budgets and

controls expenses with hard evidence to justify expenditure. It usually pricing to cover costs and contribute towards profit. Marketing tends to want flexibility to act intuitively, according to fast changing needs. Accounting function within finance operations would want tough credit terms, while marketing would want some flexibility to allow credit terms to be used as part of negotiation procedure and pricing discount as a marketing tool.

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Purchasing function

 The pricing function can also give too high

priority to price focusing on economical purchase quantities, standardisation, and the price of materials, which tend to reduce flexibility and responsiveness of the organisation. Marketing on the other hand, prefers to think of the quality of the components and raw materials rather than price and can go for non-standard parts , to increase its ability to differentiate its product from that of competition. Marketing and purchasing need to work closely to achieve building long-term, flexible and cooperative relationships with suppliers.

Production function

 Production is said to have higher potentials of

clash with marketing. Production function tend to support operating long and large production runs with a few variations on the basic product as possible and infrequent changes to the product as possible. They tend to prefer standard rather than customised orders. Marketing may look for short production runs of many varied models in order to serve a range of needs in the market. With B2B customers marketing may be concerned with customisation as a means of meeting the buyer needs better.

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Research & Development and

Engineering function

 R & D and engineering prefer long lead time

to enable to develop new product from scratch and to do the job better. Marketing would want the new product available as soon as possible to enable to be faster and leader in competition. This will help to gain in market share and market leadership. R & D may focus on the product for product’s sake and lose sight on customer needs. Marketing on the other hand tend to look for benefits and selling points of the product rather than on its functionality.

2.2 Overview of the marketing process that include

analysis, strategic planning and the marketing mix –

Overview of Marketing Process:

marketing management responsibilities

 Identifying customer needs and how the marketing function does this.

 Satisfying customer needs and the use of the marketing mix to achieve customer satisfaction:

 the role of each P in satisfying the customer

 the range of tasks and management concerns within each P

 the importance of creating a coherent, integrated and consistent marketing mix

 the concept of creating differential advantage through the strategic vision behind the marketing mix.

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Figure 2.2 : Marketing mix in marketing

process

Overview of marketing

processes  Overview of marketing processes

include : continuous analysis of the

market and market potentials by

understanding the nature of customers

and their needs and wants, in order to

develop strategic planning to guide

implementation of marketing activities

within the context of consistent and

coherent marketing mix.

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Analysis of markets and

customers

 Identify customer needs:

Identifying customer needs include

analysis of what customers want now

and why. It also include what they will

want tomorrow and identify the

influences that are changing

customer needs. The environmental

factors that affect customer needs.

The nature of customers and their

buying behaviour.

Strategic planning and the

marketing mix

 In order to act on the information

gathered through market and customer analysis, marketers need to act on that information to develop and implement marketing activities that actually deliver something of value to customers. This means by which ‘information and ideas’ are turned into reality through skilful application of marketing mix. Marketing mix ( mix of product, price, place and promotion to satisfy customer needs) is a major tools of marketing to implement marketing plan

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Strategic planning and the

marketing mix  Individual marketing activities must be

looked within the context of a coherent

and consistent marketing mix. However,

achieving that mix is an outcome of

wider framework of strategic marketing

planning, implementation and control. So

strategic planning is concerned with

looking into the future and developing

and implementing the marketing mix

plans that will drive the organisation in

the desired direction.

2.3 The different roles of marketing within both a B2B and

B2C context. Table 2 : Business to Business (B2B) and Business to Customers ( B2C) compared

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B2B and B2C Roles

 Roles of marketing differ according to nature of customers i.e., consumer-goods customers and business-goods customers. The above table highlights major differences between the two markets.

 B2C or business to customer markets serve consumer-goods customers of largely individuals and families.

 B2B or business to business markets serve business –goods customers such as manufacturing enterprises, offices, schools, hospitals, governments and various organisations.

RR-F4/Marketing Essentials/Support/Marketing Essentials Session 4.pdf

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Marketing Essentials

Session 4 LO 1: Explain the role of marketing

and how it interrelates with other

functional units of an organisation

Topic: The interrelationships of

functional units

3.1 Marketing as a business function

 Modern marketing is considered as an

integrative business function, where despite potential for conflict and clashes of culture between marketing and other internal functions

(such as production, finance, R & D, HRM), in reality while implementing marketing plan, they tend to seek redressing differences and balance to enable to work together with other functions under the umbrella of strategic planning and marketing orientation. Many successful organisations such as Sony, Nestle, and Unilever ensure that all functions within their organisation are focused on their customers .

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3.1 Marketing as a business function

 So the central business function of

marketing is to integrate the activities

of internal organisational functions

such as Production, R & D, HR and

Finance to serve the customer needs

and wants profitably and cost

effectively.

3.2 The different roles of business units and the

interrelationships between these functional units and

marketing organisation.

 Organisations functional units such as finance, purchasing, R & D, and production operate according to their own standards, culture and operational procedures. However, the role of marketing as an integrative business function tend to contribute towards marketing orientation of the organisation focusing on identifying and satisfying existing and potential customers needs and wants, profitably or cost effectively

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The different roles of

business units  So, all business functions and tasks are

interdependent, i.e., none of them can exist without the others, and none of them has any purpose without customers and markets to serve. Indeed, marketing help to supply all the functional units with the information they need to fulfil their specific tasks better, within a market oriented framework.

 The following figure shows those interdependencies, and the role of marketing in bringing functions together and emphasising the customer focus.

Figure 3.1 : Interrelationships and roles of

functional units and marketing

RR-F4/Marketing Essentials/Support/Session 1 Lecture Material.pdf

RR-F4/Marketing Essentials/Support/The marketing plan.pptx

The marketing plan

Situation analysis

This describes where your business is at this point. It includes background on past sales, major competitors and explanations of recent sales and profit results.

Situation analysis

It should also include a forecast for the industry, including opportunities and threats and the company’s strengths and weaknesses.

Objectives

Every business has objectives in deciding where they want to be and how they are going to get there

Objectives

Is the purpose of the marketing plan to launch a new product or new line of products? If so your objective might be to achieve 10% market share in the first year of product launch

Objectives

Is the purpose of your marketing plan to boost revenue from existing products? If so the objective might be to increase sales by 10% from existing products in the next year while retaining existing profit margins

Strategy

The strategy is what you need to do to reach your objectives. If your objective is where you want to be, the strategy is the route you need to take to get there.

Strategy

For example if the objective is to increase revenue, the strategy might be to

i) increase the average price on all units

ii) increase overall sales volume

iii) sell more of the higher priced units

Tactics

Whereas strategy establishes a broad outline of how to achieve objectives, tactics are specific actions. Eg. Increase awareness for potential customers by developing and sending a new brochure is a tactic for implementing a strategy.

Budget

Each tactic has a price. You should know what your budget is to reach your objectives.

An example – Plastic maker

Plastic maker is a plastic injection moulding firm with annual sales of $2 million. The plan was devised to develop opportunities for increasing sales 40% or more. The company will expand its sales territory and attract new customers through direct mailing, publicity and personal selling.

Situation analysis

Plastic maker uses technologically advanced plastic moulding equipment capable of unattended operation to provide just in time services to clients in Wisconsin, Minnesota and Michigan.

Situation analysis

Sales have been flat over the past two years due to a highly price competitive market but have experienced steady growth over the preceding four years. The company has an excellent reputation and typically turns 15% of quote requests into customers.

Situation analysis

Opportunities exist for expansion to Illinois and Iowa due to higher price points and and fewer competitors in this region.

Objectives

Increase sales 40% while retaining 20% profit margins.

Retain current mix of customers so that no one customer represents more than 20% of sales.

Relieve Joe Dokes, owner of the burden of sales allowing him more time for administration and quality control

Strategy

In all promotion materials present clear consistent image of quality and service to target market.

Expand markets beyond current geographic region of Minnesota and Wisconsin

Strategy

Provide ample sales support for sales representatives.

Develop training programmes for sales representatives designed to encourage loyalty and enhance service image of the firm

Tactics

Seek out, retain and train independent sales representatives to cover the territory of Illinois and Iowa which will increase customer base by 110%.

Purchase CAD CAM design system. Customer research shows that it is important to process requests promptly. The current average turn around time is ten days. Plastic maker will cut this down to five days by purchasing a CAD CAM design system and using fax lines to return customers quotes promptly.