Contemporary organisations (p.20&21)
Organisation = any group of people who work together to reach a shared goal. The three elements of
an organisation are people, cooperation and common purpose.
An company is often referred as an organisation that produces goods or services.
An enterprise is often referred as an organisation that aims to make profit.
Management = the leading and steering of an organisation.
Strategic management (p119-126)
Strategic management = process of careful consideration of appropriate responses to the
environment as well as maintenance of standards and development of the skills required for the
inclusion of possible changes to strategy. -> proces van zorgvuldige afweging van gepaste reacties
naar de omgeving plus het behoud van normen en ontwikkeling van de vaardigheden die vereist zijn
voor het opnemen van mogelijke wijzigingen in de strategie.
Strategy = a plan that states what an organisation needs to do to reach its goals.
Classical school of strategic management = is synonymous with strategic planning. In this approach,
strategic planning is used by an enterprise to find a balance between the resources, the strengths
and weaknesses of the enterprise on the one hand, and the opportunities and threats in the
environment on the other.
Second modern approach = strategic management is synonymous with strategic thinking. An
organisation that thinks strategically is capable of putting its vision into practice.
The process of strategic management consists of three phases:
1. Situational analysis
2. Strategy formation
3. Planning and implementation
Situational analysis = (also called strategic audit or SWOT analysis) it focusses on determining the
current profile of the organisation while taking into account its external environment. It consists of:
- A definition of the current vision, aims and strategy
- An internal analysis
- An external analysis
The first phase aims at gaining an insight into the organisation’s existing situation, defining its current
vision, aims and strategy.
Vision = a general idea or representation of the future of the organisation and usually consists of a
mission statement and principles.
The 7-S model consists of seven management factors that are independent, of equal importance and
closely connected:
1. Structure
2. Systems
3. Managerial style
4. Staff
5. Key skills
6. Strategies
7. Shared values
Principles relate to the norms and values of the organisation and they can be compared with
society’s norms and values. The following could be aspects of an organisation’s principles:
- Quality first
- Customer first
- Reliability and honesty
- Our employees are reliable and honest
, - Our employees are our strength
- A focus on personal self-awareness
- We contribute to society
The way organisational goals are defined is based on organisation’s vision. These goals show the
relationship between the organisation, the environment, and employees.
Organisational goals often relate to one or more of the following subjects:
1. Balance of interest
2. Profitability
3. Quality
4. Effectivity and efficiency
5. Image
6. Code of conduct: “We work in a disciplined manner and keep our word”
People and organisations (p.229-234)
Motivation can be described as the inner readiness (=bereidwilligheid) of a person to perform certain
actions.
- Motivation intrinsic to the job is motivation that derives from the work itself. People who
are motivated in such a sense see their job as a challenge. For these people, work is an
important part of their life. Work- related motivation would seem to provide long-term
stimulation.
- Motivation extrinsic to the job is motivation that does not derive from the work itself. It
derives from items extrinsic to the job such as work circumstances, rewards, bonuses and
status. People whose motivation is extrinsic to the job have a pragmatic attitude to their
work. Such a form of motivation is short term in practice.
The needs identified by Alderfer:
- Existential needs. These concern material security, corresponding to the physiological needs
and security of Maslow.
- Relational needs. These concern good relationships with other people. Social acceptance,
appreciation and acknowledgement are important. Translated into Maslow’s terms, these
are the need for acceptance and the need for acknowledgement.
- Growth needs. These needs are directed towards personal growth and self-fulfilment and
equate to Maslow’s main need within the pyramid, the need for self-fulfilment.
This is known as the ERG theory.
Alderfer also introduces a new element: the frustration-regression hypothesis. His suggestion is that
a need on a lower level will become more significant if higher level needs are frustrated or are not
feasible.
McClelland believes that in the first years of human life a personal need profile is developed. During
the development of this personal profile, a particular need becomes dominant.
The three need profiles:
- Performance need. This needs is directed towards providing a good performance. The
person looks for challenges, bot during work and in other activities.
- Power need. This is a need to obtain influence and control over people.
- Affiliation need. This mainly concerns the building up of good relationships.
A process-oriented motivational theory deals with the issue of the motivational processes of
employees and attempts to explain why these processes take the form they do.
,Expectancy theory states that an employee is inclined to act in particular way based on the
expectation that his action will have a particular outcome. The motivational process is comprised of
three variables or steps:
1. Expectancy. This variable indicates how effort relates to performance.
2. Instrumentality. This variable indicates how performance and reward are related.
3. Valence. (=de mogelijkheden van gebruik) This variable indicates the attractiveness of the
reward.
Extent of motivation = expectancy x instrumentality x valence
People and organisations (p.242-252)
Financial incentives are rewards for performance: the employee will receive a wage increase in
proportion to the extent that he provides the agreed performance.
The most frequent financial incentives are:
- Bonuses
- Profit sharing
- Shares-option arrangement
The tasks to be performed can be made attractive in three ways:
- Task enrichment. Elements of a qualitatively higher level are added to the range of duties.
- Task enlargement. Elements of a qualitatively equal level are added to the range of duties.
- Task rotation. Employees rotate the tasks they perform.
The theory of objectives is motivation via the setting of high objectives. It involves agreeing on
specific objectives in order to improve performance.
Not all agreed-on high objectives will lead to motivated employees. To do so the objectives must
satisfy a number of conditions, they are:
- The objectives should be high but realistic.
- The objectives should be specified.
- The objectives should be accepted by the employees.
- There has to be regular feedback on progress.
The SMART principle is an aid that can be used to formulate objectives. It indicates what conditions
should be met for the desired objective:
- Specific (S). The purpose must be described as concretely as possible. The purpose should
not be liable to different interpretations and must not be formulated in terms that are too
general.
- Measurable (M). The purpose must be formulated quantitatively. If the purpose has been
formulated quantitatively it will be controllable. These must be some kind of standard.
- Acceptable (A). The purpose has to be accepted by the person or persons that have to realise
the goals.
- Realistic (R). Realisation of the goal should be done with an acceptable amount of effort. The
goal must be challenging but not impossible to reach.
- Time-fixed (T). The goal must be reached within an agreed period.
Emotional intelligence (EQ) is a series of non-cognitive capacities, competencies and skills that
influence an individual’s success and his or her ability to meet demands and counter environmental
pressure. The five main EQ qualities are:
1. Self-awareness
2. Emotional control
3. Self-motivation
, 4. Empathy
5. Social skills
Overloading can take four different forms:
1. Emotional overloading.
2. Physical overloading.
3. Attitude and behaviour overloading.
4. Existential overloading.
Stress is the main cause of overloading.
By stress as a condition we mean the psychological and physical situation that arises when demands
are made of a person which he or she cannot satisfy.
Process-related stress can be seen as the physical, psychological and social changes that are
connected with stress as a condition.
The Michigan model depicts a number of stages that stress progresses through.
Personal and environmental factors may decrease or increase the problems.
Personality factors can be subdivided into:
- Effect-increasing factors such as excessive and aggressive fixation on the job and a need to
alienate (=vervreemden) oneself from other people.
- Effect-decreasing factors such as good social contacts, self-confidence, flexibility and good
physical condition
The environmental factors are:
- Physical working conditions
- Ergonomic factors
- Safety risks
- Work and leisure times
- Travel times and circumstances
- Private circumstances
There are a number of factors that will cause stress with a high degree of certainty and which are
characteristic of the work situation through are not connected to the personality or to environmental
factors:
a. Problems at work that have occurred for a long time or recur regularly
b. Problems at work with important consequences for the individual’s problems within the
organisation and from which he is unable to withdraw
c. A psychologically burdening work situation that is not easy to change
d. Problems at work that radiate to other functional areas such as the situation at home
Research has shown that stress at work is caused mainly by:
- Time pressure
- Long working days
- Too much work
- Personal relationships
- Employee quality
Three different approaches to stress prevention or reduction are:
- The organisational approach, which involves making changes to the job or more successful
attuning of the employee to the job.
- The individual-directed approach, which focusses on the individual and aims at increasing
problem-solving capacity and the ability of the employee to cope with the work burden.
- Handling and management of stress is aimed at decreasing a person’s susceptibility to
stress, not at solving the problems that cause the stress.
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