Summary exam material O&P exam 2-10-2020
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Chapter 0: Evolution of Organisation & Management...........................................................................5
Introduction........................................................................................................................................5
0.1: Introduction.................................................................................................................................5
Chapter 1: Environmental influences.....................................................................................................6
1.1 Introduction..................................................................................................................................6
1.2 Stakeholders.................................................................................................................................6
1.3 External factors.............................................................................................................................7
Chapter 2: Strategic management........................................................................................................10
2.1 Introduction................................................................................................................................10
2.2 The classical approach to strategic management.......................................................................10
2.2.1 Situational analysis..............................................................................................................10
2.2.2 Strategy formation...............................................................................................................13
2.2.3 Planning and implementation..............................................................................................17
2.6 Types of collaboration................................................................................................................17
Strategic alliances and trade cooperatives...................................................................................17
Joint venture.................................................................................................................................17
Mergers and acquisitions..............................................................................................................18
Outsourcing..................................................................................................................................18
Licensing and franchising..............................................................................................................18
Defence........................................................................................................................................18
Remain..........................................................................................................................................18
Catching up...................................................................................................................................18
Restructuring................................................................................................................................18
2.8 Mergers and acquisitions............................................................................................................18
Chapter 7: HRM....................................................................................................................................21
7.1 Introduction................................................................................................................................21
7.3 Career development...................................................................................................................22
7.6 Reward........................................................................................................................................23
7.6.1 Job rating.............................................................................................................................23
7.6.2 Reward determination.........................................................................................................23
7.8 Talent management....................................................................................................................24
Chapter 8: Individuals and groups........................................................................................................25
1.3 Motivation..................................................................................................................................25
1.3.1 Alderfer’s theory..................................................................................................................25
, 1.3.2 McClelland’s theory.............................................................................................................26
8.3.3 Vroom’s expectancy theory.................................................................................................26
8.6 Motivating people......................................................................................................................26
8.6.1 Motivating by means of financial incentives........................................................................26
8.6.2 Motivation by means of task design....................................................................................27
8.6.3 Motivating by setting high objectives..................................................................................27
8.7 Emotional intelligence................................................................................................................28
8.10 Groups and teams.....................................................................................................................28
8.10.1 Formal and informal groups...............................................................................................28
8.10.2 Horizontal, vertical and mixed groups...............................................................................28
8.10.3 Virtual teams.....................................................................................................................28
8.10.4 Self-governing teams.........................................................................................................29
8.11 Characteristics of groups..........................................................................................................29
8.11.1 Stages of group development............................................................................................29
8.11.2 Group cohesion..................................................................................................................29
8.11.3 Group standards................................................................................................................29
8.12 Team management and characteristics of successful teams....................................................29
8.12.1 Belbin Team Roles..............................................................................................................29
8.12.2 Team personality styles.....................................................................................................30
8.12.3 High Performance Teams...................................................................................................30
8.12.4 RealDrives..........................................................................................................................30
8.13 Organisational conflict..............................................................................................................31
Chapter 9: Leadership and management.............................................................................................32
9.2 management..............................................................................................................................32
9.2.1. Managerial activities...........................................................................................................32
9.2.2 Managerial roles..................................................................................................................33
9.2.3 Top-level managers..............................................................................................................34
9.2.4 Middle management...........................................................................................................34
9.2.4 Managers in government.....................................................................................................35
9.3 Decision-making.........................................................................................................................35
9.3.1 Decision-making in organisations........................................................................................36
9.3.2 Rational decision-making process........................................................................................37
9.3.3 Non-rational decision-making process.................................................................................38
9.5.1 Managers and power...............................................................................................................42
9.5.2 Leadership...........................................................................................................................42
9.5.3 Leadership styles.................................................................................................................43
, 9.7.2 Emotional and social intelligence.........................................................................................50
Chapter 10: Process and control...........................................................................................................51
10.2 Business processes...................................................................................................................51
10.2.1 Transformation process (said in lecture)...........................................................................51
10.2.2 Types of business processes..............................................................................................51
10.2.4 Business processes and added value.................................................................................52
10.2.5 Business process and quality.............................................................................................53
Chapter 11............................................................................................................................................54
11.1 Introduction..............................................................................................................................54
11.2 Task division and coordination.................................................................................................54
11.2.1 Vertical task division..........................................................................................................54
11.2.2 Horizontal task division......................................................................................................55
11.2.3 Horizontal task division......................................................................................................56
11.3 Traditional organisational systems...........................................................................................57
11.3.1 mechanistic and organic organisational systems...............................................................57
11.3.2 Line organisation...............................................................................................................58
11.3.3 Line and staff organisation.................................................................................................58
11.3.4 Functional and line staff organisation................................................................................58
11.3.5 Line-staff-committee organisation.....................................................................................59
11.3.6 The matrix organisation.....................................................................................................59
11.3.7 Project-Based Organisation (PBO).....................................................................................59
11.3.8 Internal project organisation.............................................................................................60
11.6.3 Holacracy...........................................................................................................................60
11.6.4 Other organisational structure trends...............................................................................61
Chapter 12: Culture..............................................................................................................................62
12.1 Introduction..............................................................................................................................62
Symbols........................................................................................................................................62
Heroes..........................................................................................................................................62
Rituals...........................................................................................................................................62
Values...........................................................................................................................................62
McClelland´s iceberg model..........................................................................................................63
12.2.1 Group process and organisational culture approach.............................................................63
12.2.2 Harrison and Handy´s typology..........................................................................................63
Chapter 13:Organisational change and development..........................................................................65
13.5.2 Greiner’s growth model.........................................................................................................65
13.6.1 Lewin’s change model...........................................................................................................65
, Chapter 0: Evolution of Organisation & Management
Introduction
An organisation can be seen as any group of people cooperating to achieve a common purpose. The
three elements of an organisation can be seen as: people, cooperation, common purpose.
The reason why people work together in an organisation is because some tasks simply can’t be
completed by one person. They exist because society has a demand for products and services
organisations provide.
Organisations need structuring. Tasks, people and resources must be structured in a way that goals
are reached. This is the task for the management.
Management literally means: The leading and steering of an organisation.
0.1: Introduction
Organisational behaviour can be defined as the study of the behaviour of organisations as well as the
outside factors that determine the behaviour and the manner in which organisations can be directed
with the goal being maximum effectiveness. You have two aspects:
Descriptive aspect; description of the behaviour of an organisation, with motives and
consequences
Prescriptive aspect: advice about recommended organisational design and a course of action.
The study of organisations involves many disciplines from various scientific field. E.g. business
studies, which contains topics such as financing, accounting, marketing, technical sciences,
information technology and behavioural sciences, which contains topics such as psychology or
sociology and law. Combining all the contribution from those fields in order to complete a study or
project is called a multidisciplinary approach.
You also have an interdisciplinary approach, this approach takes it one step further. Here, all these
subject areas are individually evaluated and then used to develop a new insight.
Two different aspects of defining organisational behaviour are direction and effectiveness.
Direction refers to a goal which should be determined in advance. Development and adjustment in a
process is an important directional aspect.
The extend in which direction is carried out successfully, is defined by the effectiveness of the
directing.
An organisational expert can be described as a generalist, he has limited knowledge of multiple
fields, while a specialist has a lot of knowledge over one or two fields.
,Chapter 1: Environmental influences
1.1 Introduction
An organisations environment consist of stakeholders and parties. They have a certain influence on
the organisation. Organisations can also have influences on stakeholders, by advertising, products
and services and maintaining contact with their stakeholders.
Environmental influences: Organizations can be influenced by things they do not have control over.
For example economic development, technological development, climate and demographic
developments. Stakeholders are a person, group or organisation that has interest or concern in a
company.
If we are speaking about an organisation that takes all of these factors into account in their directing,
we are talking about harmonisation.
1.2 Stakeholders
The most important stakeholders are:
Buyers: this is the group demanding products and services. Without this group, a lot of
companies gain their right to exist.
Suppliers: organizations demand high quality products from their suppliers, as they sell those
products to the buyers.
Competitors: every organization has competition. Monitor the activities of major competitors
and analyse their market positions.
Providers of finance (capital providers): these are shareholders, financial institutions and the
government. They support the organizations with financial support. If the providers are not
satisfied with the companies result, they can stop the financial support.
Employees: employees are an organization’s most important asset. Employees are more
trained nowadays and play a big role in product innovations.
Special interest groups: these are e.g. employer federations (trade unions) consumer
organisations (home owner associations) organisations involved in environmental activities
(Greenpeace) and other organisations that target specific subjects (refugee help and illness
support groups)
Government and local authority: these are or example the police that make sure stores are
closed in time.
Media: the media plays a very important role. Everything that happens in the world is
watched closely. The media can also have a big influence on public opinion.
,1.3 External factors
External factors are factors you can’t do anything about are called macro factors, these are all those
factors:
Environmental factors: this is about the environment, this is an important matter nowadays.
Climate change is a big issue. Over exploitation of natural resources is also a big problem.
There has been a treaty, the Paris Climate Treaty, this was signed in 2015 and the countries
involved agreed to limit the global warming to 2 degrees Celsius. The actual target is an
increase of no more than 1.5 degrees. 195 countries have signed the Treaty. In June 2017,
president Trump has announced that the US would be withdrawing from the Treaty. Seven
Dutch political parties have signed another national climate accord in July 2018. The most
important goal is a 49% reduction in the emission of greenhouse gasses. The target will be
achieved in five different areas:
Housing (reduce by 7%) proper insulation, use of sustainable resources. The Netherlands plans to
shut off access to natural gas by 2050. Gas taxes will be raised and electricity will be lowered.
Electricity (reduce emissions by 41%) a free electricity system is the ultimate goal. Windmills are
important and solar panels are also important.
Industry (reduce emissions by 29%) electrification, a more efficient use of heath and warmth and
reusing resources are important ways of achieving the target.
Agriculture (reduce emissions by 7%) reduction of methane output, improved use of land and
restriction of using fertiliser. Geothermal power is also used now. A shift from animal to plant
proteins is needed.
Mobility and transport (reduce emissions by 15%) electric cars is a promising development in this
section. Public transportation must be cleaner and travelling by bicycle must be encouraged.
Environment is one of the main strategic fields of interest, this challenge has three dimensions.
Cleaning up current activities: monitor and discover the effects their activities have on the
environment so they can introduce solutions.
Utilising new opportunities: deliver new products using environmentally friendly processes.
Working on a sustainable future: organisations must undergo radical changes to ensure a
sustainable future.
Technological factors: competition is a factor that contributes to rapid development, think
about 5G, AI and robotization. Biotechnology is an important subject biotechnology is about
food, pharmacy and agriculture. Information Technology is concerned with the application of
microelectronics. Investing in IT will become progressively cheaper. Robotization is a big
example. Call centres also have robots answering people’s questions. Big developments
usually come from the government or universities. As well as research and development by
big companies. Ministries commonly give subsidies to small and medium sized businesses so
they can also make developments.
, Demographic factors: they define the size, growth and composition of a population. The
growth is determined by various factors, the two most important are high birth rate and high
migration balance. Senior citizens are big spenders, they spend a lot more than younger
people. The life expectance is higher in the future.
The Western world is experiencing: extended life expectancy, demographic ageing, shrinking work
force, greater care needs and active older generations.
Economic factors: the growth of national income is an eminent significance. This leads to a
higher income for individuals and therefor increases purchasing power. This leads to B2C
increasing spending’s. Income distribution can have a big effect on the size of some markets.
International economic developments will also play an important role. Some examples are:
economic growth in other countries, currency fluctuations, developments in interest rates
and developments in foreign wage levels. These factors will likely have a big influence in
Dutch enterprises. Because of globalisation you can connect with any economy in the world.
An organisations success can be linked to the economy:
Depend also on international economic developments
Economic growth in other countries
Exchange rates and currency swings
Changes in base interest rates in other countries
Labour costs and wages in foreign countries.
Political factors: governmental authorities use their power to try to steer the economy in a
good direction. They influence price levels, job market and balance of payments and therefor
economic growth. To create an economic union the Member States must merge their
national economic and political institutions to a large extent. Five forms of economic
integration can be identified:
Free trade zone: there are no import tariffs so the countries buy from each other and strengthen
their international position
Customs union: a common trade policy. The revenue from import duty is divided between member
states
Common market: removing the barriers in the field of production
Economic union: monetary policy and financial government politics are in harmony
Complete political and economic union: this is the situation where the independent states or
countries merge completely. E.g. The United States.
Within the EU there is a common market based on four economic freedoms:
Freedom of movement of goods
Freedom of movement of services
Freedom of movement of capital
Freedom of movement of people
,Export is a big factor of income in NL, one third of all income.
SME’s are a major component of the Dutch economy. Sme’s are businesses with less than 100
employees. Two in three sme’s are internationally active. Sme’s are very important for the dutch
economy. They also have a lot of competition.
Societal factors: Corporate Social Responsibility, this means they do not use all their national
reserves. Corporate is always the top of the organisation. Social factors can be seen here as
the influence that society places on organisations in connection with issue, such as
Important societal trends: Growth of CSR (acting responsible, do it in the right matter), People,
Planet, Profit. Sustainable entrepreneurship, circular economy. How to treat people? Do you respect
the local inhabitants? Don’t use all the national reserves.
Corporate governance: the system used to manage and control companies, with transparency and
responsibility including decent management, corporate management that make politically, socially,
economically and ethically responsible decisions.
, Chapter 2: Strategic management
2.1 Introduction
In the previous chapter I discussed how external parties and factors affect an organisation. How
organisations adapt to the environment is an outcome of the process of strategic management. This
is the process of careful consideration of appropriate responses to the environment, as well as
maintenance of standard and development of the skills required for the inclusion of possible changes
to strategy.
Strategy can be defined as a plan that states what an organisation needs to do to reach its goals.
This chapter will be about two different approaches to strategic management. The first approach,
known as classical school, strategic management is synonymous with strategic planning.
Strategic planning is used by an enterprise to have balance between the resources, the strengths and
the weaknesses of the enterprise on one hand, and the opportunities and threats from the
environment on the other.
The second approach, called the second modern approach, has the vision that strategic management
has the same meaning as strategic thinking. An organisation that thinks strategical is capable of
putting their vision into practice.
2.2 The classical approach to strategic management
According to the classical school, the main issue is positioning the organisation in relation to the
environment it is in. This is done with a SWOT-analysis.
The process of strategic management consist of three phases:
Situational analysis
Strategy formation
Planning and implementation
2.2.1 Situational analysis
The situational analysis is a fancy word for SWOT-analysis. It consists of the definition of the current
vision, aims and strategy. It also contains the external and internal analysis.
As said, the vision, aims and strategy first must be formulated. The first element that needs
clarification is the vision. This consists of the mission and principles added together.
McKinsey Consultants developed their 7-S model to analyse the role of vision as a management tool.
This model consists of 7 management factors that depend on each other, are equally important and
closely connected. The 7-S model consists out of these factors:
1 Structure: This refers to the way elements in an organisation relate to each other. To the
organisational framework, the distribution of tasks etc. The structure of an organisation can be
temporarily changed without changing the basic structure of an organisation.
2 Systems: This refers to information and communication systems, both formal and informal,
within the organisation.
3 Managerial style: This refers to the behavioural patterns of top managers in an enterprise.
Management style has a big influence on the culture in an organisation.
