Principles of

Management
(HMM121)
BY: DR. M. MASHINGAIDZE
LECTURER: DEPARTMENT OF MANAGEMENT STUDIES
GREAT ZIMBABWE UNIVERSITY
[email protected]: +263 719 605 801
introduction
This module is offered to:
Part 1.2 business management students
Part 1.2 marketing management students
Part 1.1 office management students
Part 1.1 logistics & transport students
Part 1.2 accounting students
Part 1.1 risk management students
Part 1.1 information systems students
Part 1.1 economics & finance students
 Introduction to Management:
Key Concepts
• Organization: People working together and • Resources: are organizational assets and
coordinating their actions to achieve include:
specific goals. • People,
• Machinery,
• Goal: A desired future condition that the • Raw materials,
organization seeks to achieve. • Information, skills,
• Financial capital.
• Management: The process of coordinating
work activities so that they are completed
efficiently and effectively with and through • Manager: Someone who works with and
other people....This is done through… through other people by coordinating their
• Planning, Organizing, Leading, and work activities in order to accomplish
Controlling organizational goals.
• Universality of Management:-the reality
that management is needed in all types of
organizations, at all organizational levels, in
all organizational areas and in all countries
around the globe.
Key Management Concepts
• Efficiency: Getting the most output from • Efficiency is concerned with getting things
the least amount of inputs.( doing things done, whereas effectiveness is concerned
right). with the ends.
• Usually, managers must try to
minimize the input of resources to
attain the same goal. Since
managers deal with scarce inputs
e.g. money, people, equipment,
they are generally concerned with
the efficient use of these resources
• Effectiveness: Completing activities so that
organizational goals are attained( doing
the right things). Effectiveness is
concerned with those work activities that
will help the organization reach its goals.
• Organizations are more effective
when managers choose the correct
goals and then achieve them.
MANAGERIAL
FUNCTIONS
PLANNING ORGANISING

MANAGERIAL
FUNCTIONS

CONTROL LEADERSHIP
MANAGERIAL
FUNCTIONS
Planning is the process used by managers to identify and select
appropriate goals and courses of action for an organization.
In organizing, managers create the structure of working relationships
between organizational members that best allows them to work
together and achieve goals.
In leading, managers determine direction, state a clear vision for
employees to follow, and help employees understand the role they play
in attaining goals
In controlling, managers evaluate how well the organization is
achieving its goals and takes corrective action to improve performance.
Why are managers important
in work organisations
1. Organisations need their managerial skills
2. Create and coordinate workplace systems
3. They engage employees to improve company productivity
4.
5.
6.
What are the rewards and
challenges of being a manger
Rewards
1.Receive appropriate compensation e.g salaries etc
2.They influence org outcomes
3.Have opportunities to think creatively
Challenges
1.May have duties that are more clerical than managerial
2.Have to deal with varying personalities
3.Have to work with limited resources
Three Levels of Management

Top
Managers
Middle
Managers

First-line Managers

Non-management
Levels of management
Top management
 Includes the ceo and his/her executive
Duties
Responsible for the organisation as a whole,Includes board of
directors, partners, managing director, chief executives
Responsible for determining the mission, vision, goals and overall
strategies of the entire organisation
Concerned with long-term planning, designing the organisation’s broad
organisation structure, leading the organisation, and monitoring
(controlling) its overall performance
Management Levels & their
Responsibilities
Middle management Lower/first-line management
Responsibility Responsibility
 Responsible for specific departments  Responsible for smaller segments of
of the organisation,Includes the organisation e.g.: the different
functional heads such as financial sections,Includes supervisors or
manager, marketing manager etc. foremen
 Primarily concerned with  Deal with the monthly, weekly and
implementing the strategic plan daily management of their sections
formulated by top management
 Ensure the plans made my middle
 Responsible for medium-term management are implemented
planning (the near future) and leads
by means of the department heads  The primary concern of a supervisor
is to apply policies, procedures and
 Continually monitor environmental rules to achieve a high level of
influences that may affect their own productivity in his/her section, to
departments provide technical assistance, to
motivate subordinates, and to ensure
that the section’s goals are reached
Managerial Skills required at
Different Levels of Management
 The 3 major skills needed by Interpersonal
managers at all levels and in all
departments and sections of The ability to work with people
the organisation are: Technical
Conceptual The ability to use the
 The mental ability to view the knowledge or techniques of a
organisation and its parts specific discipline to reach
holistically. Involves the specific goals
manager’s thinking and Each level of management
planning abilities requires a different degree of
each skill.
 1-22

Skill Type Needed by

Manager Level
Top
Managers

Middle
Managers

Line
Managers

Conceptual Human Technical

Managerial Roles
 Described by Mintzberg.  There are 3 broad role
◦ A role is a set of specific tasks a categories:
person performs because of the 1. Interpersonal
position they hold. 2. Informational
 Roles are directed inside as 3. Decisional
well as outside the
organization.
Managerial Roles
According to Henry Mintzberg: Liaison – Managers must communicate with
internal and external contacts. You need to
Interpersonal Category be able to network effectively on behalf of
your organization.
The roles in this category involve providing Informational Category
information and ideas.
Figurehead – As a manager, you have social, The roles in this category involve processing
ceremonial and legal responsibilities. You're information.
expected to be a source of inspiration. People Monitor – In this role, you regularly seek out
look up to you as a person with authority, and information related to your organization and
as a figurehead. industry, looking for relevant changes in the
Leader – This is where you provide leadership environment. You also monitor your team, in
for your team, your department or perhaps terms of both their productivity, and their
your entire organization; and it's where you well-being.
manage the performance and responsibilities
of everyone in the group.
Managerial Roles
Disturbance Handler – When an
Disseminator – This is where you organization or team hits an unexpected
communicate potentially useful roadblock, it's the manager who must take
information to your colleagues and your charge. You also need to help mediate
team. disputes within it.
Spokesperson – Managers represent and Resource Allocator – You'll also need to
speak for their organization. In this role determine where organizational resources
you're responsible for transmitting are best applied. This involves allocating
information about your organization and funding, as well as assigning staff and
its goals to the people outside it. other organizational resources.

Decisional Category Negotiator – You may be needed to take

part in, and direct, important negotiations
The roles in this category involve using within your team, department, or
information. organization.
Entrepreneur – As a manager, you create
and control change within the
organization. This means solving problems,
generating new ideas, and implementing
them.
Changes facing managers
1. Increased emphasis on organisational and managerial ethics
oManagers are being pressurised to manage ethically
oThis include being accountable to the stakeholders
Changes facing managers
2. Increased competitiveness
oThis comes from emphasising customer service
Its now the responsibility of everyone in the organisation to excite or
delight the customer
Its not the responsibility of marketers alone
For survival in todays environment we need high quality customer
service
Changes facing managers
oIncreased competitiveness also comes from innovation
Innovation includes the development of new products, markets and
processes.
This is very important in surviving the cut throat competition
associated with globalisation
Changes facing managers
3. Globalisation
The breakdown of traditional boundaries to trade leading to stiff
competition in domestic markets
What does globalisation bring?
oDiversity of employees
oDigitalisation
ocompetition
Changes facing managers
4. Changing security threats
oRisk management – especially cyber threats
5. Sustainability issues
oThe company’s ability to achieve its business goals and increase long
term shareholder value by integrating economic, environmental
opportunities into business strategies
oSustainability is moving up the agenda of most companies agenda
Changes facing managers
6. Changing technology
oTechnology is changing rapidly leading to digital workplaces.
oTechnological changes are also leading to flexible working
arrangements including a more mobile workforce
oVirtual workplaces
 The Evolution of
Management
• The driving force behind the evolution of management theory is the search for better
ways to utilize organizational resources. The evolution of modern management began in
the late 19th century after the industrial revolution – Economic ,technical and cultural
changes were taking place.
Early Management
Management has been practiced a long time. Organized endeavors directed by people
responsible for planning,organising leading and controlling activities have existed for
thousands of years.
The Great Zimbabwe Ruins in Masvingo in Zimbabwe : who directed people to bring
stones etc, who designed the shape of the ruins?
The Egyptian pyramids in Egypt
The great wall of China
The Evolution of Management
Theory
Contingency Approach

Systems Theory

(Comprehensive Analysis of Management)

Scientific management
Associated with the work of fw Taylor and He developed 4 principles to
increase efficiency
1. Experiment to improve specialisation, simplifying jobs and having
each worker perform fewer, more routine tasks.
2. Codify methods of performing tasks into written rules and
procedures (SOPs)
3. Carefully select workers so that they possess skills and abilities that
match needs of tasks and train them to perform tasks according to
rules and procedures
4. Establish a fair or acceptable level of performance for a task and
then develop a pay system that provides a higher reward for
performance above the acceptable level.
Evolution of Management
Administrative Theories
Theory of Bureaucracy
Fayol’s Principles of Management
Evolution of Management
Henri Fayol  Henri Fayol, developed a set
of 14 principles:
1. Division of Labor: allows for job
 Henry Fayol’s experience led specialization.
 Fayol noted firms can have too much
him to conclude that there specialization leading to poor quality
were five basic functions of and worker involvement.
administration: 2. Authority and Responsibility: Fayol
included both formal and informal
 1. planning, authority resulting from special
expertise.
 2. organizing, 3. Unity of Command: Employees
 3. should have only one boss.
leadership,
4. Line of Authority: a clear chain
 5. controlling. from top to bottom of the firm.
5. Centralization: the degree to which
authority rests at the very top.
Evolution of Management
Unity of Direction: One plan of 11. Remuneration of Personnel:
action to guide the The payment system
organization. contributes to success.
7. Equity: Treat all employees 12. Stability of Tenure: Long-
fairly in justice and respect. term employment is
8. Order: Each employee is put important.
where they have the most 13. General interest over
value. individual interest: The
9. Initiative: Encourage organization takes precedence
innovation. over the individual.
10. Discipline: obedient, applied, 14. Esprit de corps: Share
respectful employees needed. enthusiasm or devotion to the
organization.
Evolution of Management
Theory of Bureaucracy
Developed the principles of bureaucracy – a formal system of
organization and administration meant to increase efficiency and
effectiveness
Evolution of Management
Max Weber
Division of
labour

Authority
Career hierarchy
orientation

A bureaucracy
should have

Formal
selection
Impersonality

Formal rules
 Evolution of Management
Division of Labour
Jobs broken down into simple ,routine and well defined tasks.
Authority Hierarchy
Positions organised in a hierarchy with a clear chain of command.
Formal selection
People selected for jobs based on technical qualifications
Formal Rules & Regulations
System of written rules and standard operating procedures.
Impersonality
Uniform application of rules and controls, not according to personalities
Career Orientation
Managers are career professionals not owners of units they manage.
 Behavioural Management
• It came into being as a result of the failure of the scientific and admin theories to make an
adequate study of the human element as an important factor in the accomplishment of
organisational objectives. Elton Mayo( 1880 – 1949) found out that increased productivity
was not always as a result of a well designed task & sufficiently high wages , it could also
be attributable to the relations between human beings and the organisation that is
between management & workers and between workers themselves in a particular group.
The basic premise of this school is that psychological and sociological factors are no less
important than physical factors in the attainment of organisational goals.
Other Early Advocates of the Behavioural Approach are?
• Mary Parker Follet – Advocated for managerial subordinate relationships
• Theory X & Y
• Abraham Maslow
 Maslow’s Hierarchy of
Needs
Self-Actualization

Need for Self Esteem

Need for Social Relations

Need for Security

Physical Needs
Contemporary Approaches
The systems approach The contingency approach
 The contingency approach is based on the
systems approach to management. The basic
premise of the contingency approach is that the
application of management principles depends
AND on the particular situation that management
faces at a given point in time.

THE CONTIGENCY APPROACH

 The contingency approach recognizes that every
organization, even every department or unit
within the same organization, is unique. The
characteristics of the situation are called
“contingencies” and they can be of use in helping
managers identify the situation. These
contingencies are:
 The organisation’s external environment
 The organisation’s own capabilities
 Managers and workers (their values, goals, skills,
and attitudes)
 The technology used by the organisation.
 SYSTEMS APPROACH

TRANSFORMATION
OUTPUTS
PROCESS
1.PRODUCTS &
1.MANAGEMENT
INPUTS SERVICES
ACTIVITIES
1.RAW M 2.FINANCIAL
2.TECH & OPS
2.TECHNOLOGY RESULTS
METHODS
3.INFORMATION 3.HUMAN
3. EMPLOYEES WORK
RESULTS
ACTIVITIES
Quantitative Management
Theory
 The focus of the quantitative management theory. Total quality management
 This theory deals with mathematical models,  It was inspired by a small group of quality experts,
statistics, and other models, and their use in the most prominent of them being W Edwards
management decision-making. This school argues Deming.
that management decisions should be based on
quantifiable information. The quantitative  Total: Quality involves everyone and all activities in
perspective comprises: - the organization
Management science  Quality: Meeting customers’ agreed requirements,
formal and informal, at the lowest cost, first time
deals with the development of mathematical models every time.
to assist managers in decision-making.
 Management: Quality must be managed.
Operation research (OR)
 TQM encompasses employees and suppliers, as
Management science deals with the development of well as the people who buy the organization's
mathematical models to assist managers in decision- products or services. The goal is to create an
making. Operations research is an applied form of organization committed to continuous improvement.
management science that helps managers develop
techniques to produce their products and services  TQM emphasizes actions to prevent mistakes; quality
more efficiently. control consists of identifying mistakes that may
already have occurred.
 Tools and techniques used today include linear
programming, PERT/CPM, and regression analysis.
They can be used to develop product strategies,
production scheduling, capital budgeting, cash flow
management and inventory control. It is used mainly
as a tool or aid in decision-making.
Chapter III: Business & its’
Environment
 Organizational Environment:
those forces outside its
boundaries that can impact it.
◦ Forces can change over time and are
made up of Opportunities and
Threats.
 Opportunities: openings for
managers to enhance revenues
or open markets.
◦ New technologies, new markets and
ideas.
 Threats: issues that can harm an
organization.
◦ economic recessions, oil shortages.
 Managers must seek
opportunities and avoid threats.
Forces in the Organizational
Environment
General
Environment
Technological Task Sociocultural
Environment
Forces Forces
Competitors

Global Suppliers Firm Customers Economic

Forces Forces

Distributors

Political & Demographic

Legal Forces Forces
BUSINESS
ENVIRONMENT
INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT
STAFF MARKET ENVIRONMENT
SKILLS 1. SUPPLIERS
SYSTEMS 2. CUSTOMERS
SHARED VALUES 3. DISTRIBUTORS
STRATEGY 4. COMPETITORS
STRUCTURE 5. GVT AGENCIES - ZIMRA
BUSINESS
ENVIRONMENT
EXTERNAL ENVIRONMENT
POLITICAL ENVIRONMENT
ECONOMIC ENVIRONMENT
SOCIAL ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT
LEGAL ENVIRONMENT
ECOLOGICAL ENVIRONMENT
Managing the Environment
 Scanning the environment Responses to change:
helps to:
1. Managing information.
1. Have knowledge of trends in
the environment 2. Strategic responses
 Reducing the number of
2. Identify environmental
dimensions that largely suppliers
determine the progress of a  Reducing the level of waste by
business. first line managers
3. Identify threats and challenges 3. Structural change
in the environment in good
time and to transform them  Creating new organizational
into opportunities. structure
GLOBAL
MANAGEMENT
ONE IMPORTANT FEATURE OF THE GLOBAL ENVIRONMENT IS GLOBAL
TRADE. THIS GLOBAL TRADE IS SHAPED BY REGIONAL TRADING
ALLIANCES AND TRADE MECHANISMS. THESE ENSURE THAT TRADE
OCCURS SMOOTHLY
GIVE EXAMPLES OF REGIONAL TRADING ALLIANCES FROM:
1.AFRICA
2.EUROPE
3.AMERICA
GLOBAL TRADE
MECHANISMS
EXAMPLES OF GLOBAL TRADE MECHANISMS:
1.WORLD TRADE ORGANISATION
2.INTERNATIONAL MONETARY FUND AND THE WORLD BANK
3.ORGANISATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
QUESTION:
DISCUSS THE IMPORTANCE OF REGIONAL TRADING ALLIANCES AND
GLOBAL TRADE MECHANISMS
Benefits of regional trading
alliances
What are the benefits of regional trading alliances?
 RISKS IN
INTERNATIONAL
BUSINESS
Commercial Risk
Country Risk
Weak partner
War
Poor execution of
Unfavourable
strategy
legislation
Operational
Corruption
problems

Risk in
International
Business Financial Risk
Inflation
Cross Cultural Risk Exchange Rate
Language barrier movements
Cultural Taxation
differences
Entry strategies in
international business
environment
1. GLOBAL SOURCING
PURCHASING RAW MATERIALS AND LABOUR FROM AROUND THE
WORLD WHERE IT IS CHEAPEST
2. EXPORTING
MAKING PRODUCTS DOMESTICALLY AND SELLING THEM ABROAD
3. IMPORTING
ACQUIRING PRODUCTS MADE ABROAD AND SELLING THEM
DOMESTICALLY
GOING INTERNATIONAL
4. FRANCHISING
ONE ORGANISATION GIVING ANOTHER ORGANISATION THE RIGHT TO
USE ITS BRAND NAME,TECHNOLOGY OR PRODUCT SPECIFICATIONS IN
RETURN FOR A LUMPSUM PAYMENT OR FEE BASED ON SALES
5. STRATEGIC ALLIANCE
A PARTNERSHIP BETWEEN COMPANIES IN WHICH BOTH SHARE
RESOURCES AND KNOWLEDGE IN DEVELOPING NEW PRODUCTS OR
BUILDING PRODUCTION FACILITIES.
5.1 JOINT VENTURE: A SPEFIC TYPE OF STRATEGIC ALLIANCE IN WHICH
PARTNERS FORM A SEPARATE ,INDEPENDENT ORGANISATIONFOR
SOME BUSINESS PURPOSE
GOING
INTERNATIONAL
6. FOREIGN SUBSIDIARY
THIS INVOLVES DIRECTLY INVESTING IN A FOREIGN COUNTRY. AN
ORGANISATION CAN SET UP AN INDEPENDENT OFFICE IN A FOREIGN
COUNTRY
PLANNING
Planning is a detailed  It is the basic management
programme regarding future function which includes
courses of action formulation of one or more
 According to Koontz & detailed plans to achieve
optimum balance of needs or
O'Donnell, “Planning is deciding demands with the available
in advance what to do, how to resources.
do and who is to do it. Planning
bridges the gap between where
we are to, where we want to
go. It makes possible things to
occur which would not
otherwise occur”.
Why Do Mangers Plan?
•Provides Direction-To managers & non-managers. When people know their
targets they coordinate their activities and do what it takes to achieve the
goals.
•Minimises uncertainties-by forcing managers to look ahead, anticipate
change ,consider the impact of change and develop appropriate responses.
Managers can respond effectively
•Facilitates coordination – cooperation amongst organisational members &
units as they work towards goal accomplishment
•Improves employee morale – participation in setting goals – a sense of
belonging develops
•Facilitates controlling- planning establishes goals that are used in
controlling . Controlling involves monitoring whethetr goals are being
achieved.
•Encourages innovation- Diverse ideas amongst people contributes to new
ideas being generated
TYPES OF PLANS
1. STRATEGIC PLANS
 Done by top management
 Cover the entire organisation
 Act as a basis for other plans
 Focuses on the future & extends beyond current realities
TYPES OF PLANS
Tactical plans

 DONE BY FUNCTIONAL MANAGERS

 Tactical planning deals primarily with people and action to
implement the strategic plans. The focus could be on the functional
areas in an organization.
Operational plans
 Operational plans are developed by the middle-level and lower-level
managers. These plans focus on carrying out tactical plans to
achieve operational goals. Operational plans are narrowly focused
and have relatively short time horizons. (monthly, weekly, and day-
to-day)
TECHNIQUES FOR
ASSESSING THE
ENVIRONMENT
ENVIRONMENTAL SCANNING
INVOLVES SCREENING OF LARGE AMOUNTS OF INFORMATION TO
ANTICIPATE AND INTERPRATE CHANGES IN THE ENVIRONMENT. IT
REVEALS ISSUES AND CONCERNS THAT COULD AFFECT AN OR CURRENT
AND FUTURE OPERATIONS
COMPETITOR INTELLIGENCE
A PROCESS BY WHICH ORGANISATIONS GET INFORMATION ABOUT
THEIR COMPETITORS – COMPETITOR INFORMATION CAN BE OBTAINED
FROM PRESS RELEASES, SUPPLIERS,ANNUAL REPORTS, INDUSTRY
STUDIES ETC
TECHNIQUES FOR
ASSESSING THE
ENVIRONMENT
GLOBAL SCANNING
INVOLVES GETTING INFORMATION ABOUT GLOBAL FORCES THAT MAY
AFFECT THEIR OPERATIONS – THIS IS IMPORTANT IF AN ORG OPERATES
IN INTERNATIONAL MARKETS.MANAGERS CAN USE ELECTRONIC
SERVICES THAT PROVIDE TOPIC SEARCHES AND AUTOMATIC UPDATES
IN GLOBAL AREAS OF SPECIAL INTEREST.
FORECASTING
INVOLVES PREDICTIONS OF OUTCOMES.
TECHNIQUES FOR
ASSESSING THE
ENVIRONMENT
QUANTITATIVE FORECASTS
APPLYING A SET OF MATHEMATICAL RULES TO A SERIES OF PAST DATA
TO PREDICT OUTCOMES – TIME SERIES ANALYSIS ETC
QUALITATIVE FORECASTING
USING JUDGEMENT & OPINIONS OF KNOWLEDGEABLE INDIVIDUALS TO
PREDICT OUTCOMES
TECHNIQUES FOR
ASSESSING THE
ENVIRONMENT
BENCHMARKING
A SEARCH FOR BEST PRACTICES AMONG COMPETITORS AND NON
COMPETITORS THAT LEAD TO SUPERIOR PERFORMANCE. THE BASIC
IDEA BEHIND BENCHMARKING IS THAT MANAGERS CAN IMPROVE
PERFORMANCE BY ANALYSING AND THEN COPYING THE METHODS OF
THE LEADERS IN VARIOUS FIELDS.
 Techniques For Allocating
Resources
• Resources are used to accomplish 3. Scheduling
organisational objectives:
1.Budgeting •A process whereby managers
allocate resources by detailing what
A budget is a numerical plan for allocating activities must be done, the order in
resources to specific activities. Budgets are
normally used for revenues, expenses and which they have to be done, the
large capital expenditures such as person responsible & the timelines
equipment
2. Break Even Analysis Scheduling Devices
•3. 1.Gant Chart
Used to determine the breakeven point. A
break even point is the level where total •A bar graph showing when tasks are supposed to be
revenue is sufficient to cover total costs done and compares those projections with the actual
progress on each task
Techniques for Allocating
Resources
3.2. PERT Network Analysis 4. Linear Programming
•Used for complex projects A mathematical technique that
involving many activities and a lot solves resource allocation
of workers. A PERT Network is a problems. It useful in situations
flowchart diagram showing that where resources are limited and
depicts the sequence of activities managers have to optimize profits
needed to complete a project and for example the selection of
the time & costs associated with transport routes that minimize
each activity. PERT allows shipping costs, Allocating a limited
managers to monitor the progress advertising budget among various
of a project ,identify possible product brands.
bottlenecks and shift resources
where necessary
BARRIERS TO PLANNING
Strategic
Planning
1. IS AN ORGANIZATION'S PROCESS OF DEFINING ITS DIRECTION AND MAKING DECISIONS
ON ALLOCATING ITS RESOURCES TO PURSUE THIS STRATEGY.
2. A SYSTEMATIC PROCESS OF ENVISIONING A DESIRED FUTURE AND TRANSLATING THIS
VISION INTO BROADLY DEFINED GOALS / OBJECTIVES AND A SEQUENCE OF STEPS TO
ACHIEVE THEM
 Strategic Planning Process
1. Identify the organizations current vision & mission.

2. Formulate objectives

3. Environmental Scanning

4. Formulate Strategies

5. Implement Strategies

6. Evaluate Results
Environmental Scanning
It will include the following:
1.Internal Analysis of the firm- management,organisations systems etc
2.Analysis of the firm industry( the task environment) – the competitors,
the suppliers & the customers
3.The External Environment- PEST Environment
The internal analysis can identify the firms strengths & weaknesses and
the external environment reveal opportunities and threats. A profile of
the strengths, weaknesses , opportunities and threats is generated by
means of a SWOT.
 ENVIRONMENTAL
SCANNING(SWOT)
STRENGTHS( INTERNAL) WEAKNESSES(Internal)

OPPORTUNITIES( External) THREATS(External)

Importance Of Strategic
Planning
ORGANISING
Reasons for Organising
 Some of the reasons why 5. The principle of synergy enhances
organising is necessary include: the effectiveness and quality of
the work performed.
1. Allocation of responsibilities.
6. Division of work.
2. Accountability. The responsible
employees will be expected to 7. Organizing means
account for the outcomes, systemicatically group in a variety
positive or negative, for that of task, procedures, and
portion of the work directly under resources.
their control.
8. Departmentalisation. The related
3. Establishing clear channels of tasks and activities of employees
communication are grouped together
meaningfully n specialized
4. Resource deployment. sections, departments, or
Organising helps managers to business units.
deploy resources meaningfully.
9. Coordination. The organization
structure is responsible for
creating a mechanism to
coordinate the activities in the
entire organization.
 STRUCTURE &
BEHAVIOUR
A SIMPLIFIED ORGANISATIONAL STRUCTURE

MD/CEO
KEY CONSIDERATIONS
IN ORGANISING
1. work specialization,
2. chain of command,
3. authority,
4. delegation,
5. Departmentalization
6. span of control, and
7. centralization versus decentralization. Many of these concepts are
based on the principles developed by Henri Fayol.
DELEGATION
WHAT ARE THE BENEFITS OF DELEGATION?
DEPARTMENTALISATION
FUNCTIONAL DEPARTMENTALISATION
GEOGRAPHICAL DEPARTMENTALISATION
PRODUCT DEPARTMENTALISATION
CUSTOMER DEPARTMENTALISATION
Chapter v: Leadership
A relationship through which one person influences the behaviour or
actions of other people( Mullins,2006).
IMPORTANCE OF LEADERSHIP
 Leadership is related to motivation, interpersonal behaviour and the
process of communication. To keep employees morale very high is
achievable through good leadership.
 Leadership is also important in attempting to reduce employee
dissatisfaction. Leadership involves delegation & empowerment
which are very crucial in improving job satisfaction.
 Good management leadership helps to develop teamwork and the
integration of individual and group goals.
 Leadership is important in times of change and uncertainty. Effective
change leadership is the key to shifting people’s perceptions from
seeing change as a threat to seeing it as an exciting challenge.
 Sources Of Leadership Power
• Used to affect other’s behavior and get 3. Coercive Power: based in ability to punish
them to act in given ways. others. Followers react to this power out of
1. Legitimate Power: manager’s authority fear of the negative results that might occur if
resulting by their management position in the they do not comply.
firm. • Ranges from verbal reprimand to pay cuts
• Can be power to hire/fire workers, assign to firing.
work. • Can have serious negative side effects.
2. Reward Power: based on the manager’s 4. Expert Power: based on special skills of
ability to give or withhold rewards. leader.
• Pay raises, bonuses, verbal praise. • First & middle managers have most expert
• Effective managers use reward power to power.
signal employees they are doing a good job. • Those with computer skills etc
• Often found in technical ability.
5. Referent Power: results from personal
characteristics of the leader which earn
worker’s respect, loyalty and admiration.
people with Charisma)
• Usually held by likable managers who are
concerned about their workers.
Leadership & Management
Leaders Managers
Lead & Direct Plan, Organize & Control

Create & Articulate vision & Implement vision, change &

Change policy
Innovate Administer

Develop Maintain

Inspire Control
 Leadership & Management
1. Leaders advocate change and new approaches of doing things.
They are not content with the status quo. Managers advocate for
stability and the status quo.
2.Leadership involves creating a vision , aligning people with the vision
through communication. Management involves planning and budgeting
, organising and staffing controlling and problem solving
3.In terms of employee relations leaders trust and develop employees
whereas managers direct and coordinate subordinates.
4.In terms of governance leaders uses influence to motivate people
towards a certain goal whereas managers exercise authority.
 Approaches To Leadership
Due to its complex and variable nature there are many 1. Trait /Qualities Approach– What Type of Person
alternative ways of analysing leadership. Makes a Good Leader?
One way is to examine managerial leadership in Trait a
theories argue that effective leaders share
number of common personality characteristics, or
terms of: "traits."
 the qualities or traits approach Early trait theories said that leadership is an innate,
instinctive of an effective leader:
 the functional or group approach, including action-
centred leadership; a)Drive
leadership as a behavioural category; b)Desire to lead
styles of leadership; c)Honesty & Integrity

the situational approach and contingency models; d)Self Confidence

 transitional or transformational leadership; and e)Intelligence

f)Job Relevant Knowledge
 inspirational leadership
• However, none of these traits, nor any specific
combination of them, will guarantee success as a
leader.
• Traits are external behaviors that emerge from the
things going on within our minds – and it's these
internal beliefs and processes that are important for
effective leadership..
Leadership
•Behavioral Theories – What Does a Good Leader
Do?
•Behavioral theories focus on how leaders behave.
•Autocratic leaders make decisions without consulting their teams.
•Democratic leaders allow the team to provide input before making a
decision
•Laissez-faire leaders don't interfere; they allow people within the team
to make many of the decisions.
Approaches To Leadership
(B) Ohio State – Consideration &
Initiating Structure
( C) UNIVERSITY OF MICHIGAN STUDIES
Consideration reflects the extent to
which the leader establishes trust, Employee Centred & Production Centred Supervision
mutual respect and rapport with the
group. They concluded that effective
Structure reflects the extent to which leadership display the following
the leader defines and structures characteristics:
group inter- actions towards
attainment of formal goals and  delegation of authority and
organises group activities. avoidance of close supervision;
Need to balance the two  an interest and concern in their
subordinates as individuals;
 participative problem-solving;
and
 high standards of performance
Conc: Need to balance the two
 Approaches To Leadership
Contingency Approach – How Does the
Situation Influence Good Leadership?
READ ABOUT : PATH GOAL THEORY,HERSEY
BLANCHARD SITUATIONAL LEADERSHIP THEORY
Leadership
Charismatic Leadership: behavioral attributes of a leader that earns
him/her loyalty from the followers. Followers are influenced by the
leader because they like his/her behavior.
The Charismatic Leader: An enthusiastic ,self confident leader whose
personality and actions influences people to behave in certain ways.
Charismatic Leaders pay a great deal of attention in scanning and
reading their environment, and are good at picking up the moods
and concerns of both individuals and larger audiences. They then will
hone their actions and words to suit the situation.
Leadership
TRANSFORMATIONAL LEADERSHIP
Transformational leadership is a process that changes and transforms
individuals (Northouse, 2001). In other words, transformational
leadership is the ability to get people to want to change, to improve,
and to be led. It involves assessing employees' motives, satisfying their
needs, and valuing them (Northouse, 2001).
TRANSACTIONAL LEADERSHIP
Transactional leadership is based on exchange relationship between the
leader & the subordinate. The emphasis is on the clarification of goals
and objectives, work task and outcomes, and organisational rewards
and punishments.
 Motivation
  ◦ THE MOTIVATION PROCESS

• Motivation is the willingness to exert high levels of The motivation process consists of the following
interdependent elements:-
effort toward attaining organizational goals
 Need,Motive,Behaviour,Consequence
 Satisfaction / dissatisfaction, Feedback
 The variables that determine performance are
motivation (goal or desire) ability (training,
knowledge, and skills) and the opportunity to
perform.
 Motivation x Ability x Opportunity = Performance
 An employee must possess a high level of
motivation plus the appropriate training,
knowledge, and skills that are necessary to
perform effectively in a given work situation.
  
 Work performance is also determined by a
person’s values and attitude, perceptions, learning,
emotional intelligence and so on.
 Classification of Motivation
Theories
We classify motivation theories in terms of content, process, and reinforcement theories. The content
and process theories deal with the “what” and the “how” of motivation respectively. Reinforcement
theories look at the ways in which desired behaviour can be encouraged.

Content Theories
1.Deals with what motivates people.
2.Concerned with individual needs & goals
Process Theories
1. Deals with how motivation occurs
Reinforcement Theories
1. It looks at the ways in which positive behavior can be reinforced.
 Motivation Theories- Process
Theories
These focus on how motivation • Expectancy Theory
occurs. The most popular are:
It states that an individual tends to act in a
1. Equity Theory certain way based on the expectation that
the act will be followed by a given outcome
2. Expectancy Theory and on the attractiveness of that outcome
to the individual. The key relationships are
effort –performance linkage( expectancy),
Equity Theory and attractiveness of the reward (valence)

• States that individuals compare their

jobs inputs – outcomes ratio with
those relevant of others. If they
perceive that they are being under
rewarded, their motivation declines.
Or they may resign. When individuals
perceive that they are being over
rewarded ,they often are motivated
to work harder in order to justify their
pay.
 Motivation Theories-Content
Theories
Maslow’s Hierarchy of Needs Herzberg Two Factor Theory( Motivation – Hygiene
Theory)
According to this theory, individual strives to seek a higher
need when lower needs are fulfilled. Once a lower-level need 1. Hygiene factors: A series of hygiene factors create
is satisfied, it no longer serves as a source of motivation. dissatisfaction if individuals perceive them as inadequate or
Needs are motivators only when they are unsatisfied. inequitable, yet individuals will not be significantly motivated
if these factors are viewed as adequate or good. Hygiene
1. Physiological Needs – food , drink, shelter, sexual factors are extrinsic.
satisfation.In a working environment management tries to satisfy
through salary and wages that allow employees to buy basic 2 Motivators: They are intrinsic factors such as sense of
commodities.
achievement, recognition, responsibility, and personal
growth.To motivate employees, he argued that people should
2. Safety Needs – Security & protection from physical and emphasize on motivators, the intrinsic factors that increase
emotional harm. Met through salary and also confirm job job satisfaction
security.
Intrinsic Factors( Motivators)
3. Social Needs – Affection, Belongingness, Acceptance and
friendship. Met through interaction with fellow workers and
acceptance by others. 1. Achievement – People expect targets at work. If targets are
achieved they feel motivated
4. Esteem Needs – Self Respect, Autonomy, and Achievement
( Internal Esteem Factors) – External Esteem Factors ( Status, 2. Recognition – employees want rewards for good performance
Recognition, and Attention). Met through recognition by peers
and acquiring organizational titles. 3. Work itself –employees want challenging jobs
5. Self Actualization Needs – Growth, Self-Fulfillment, Drive to 4. Responsibility
become what one is capable of becoming- Met through
providing opportunities for job experience, company recognition &
facilitate educational improvement. 5. Advancement – employees want career advancement
opportunities – Training so that they get knowledge

6. Growth – employees want to get higher positions of authority

in an organization. Higher positions give more authority and
control over jobs.
 Motivation

Hygiene Factors ( Extrinsic Factors-Non Motivators)

1. Supervision
2. Company policy
3. Working conditions
4. Salary
5. Status
 Motivating A Diverse
Workforce
1.Flexible Working Schedules Motivating Professionals
• A compressed work week- working fewer days per 1. Job Challenge- they like to tackle problems and
week come up with solutions
• Flexible working hours – scheduling system where 2. Support – They value support
workers are required to work a specific number of
hours per week but are 3. Allow them to structure their work in ways
they find productive.
free to vary those hours within those time limits.
4. Reward them with Educational opportunities
2. Job Sharing – two or more people split a full time
job.- suitable for people with school going children or 5. Additional training, workshops & conferences
retirees
6. Recognition
3. Telecommuting – a job approach in
which employees work at home and are linked to the Motivating Low wage Employees
work place by computer or moderm
1. Employee Recognition programs – employee of the m onth,
quarterly performance bonuses

2. Praise

3. Job redesign – this increases skills variety, autonomy, opportunity

for feedback, task identity, for example allowing employees to solve
customers problems.
Practical Suggestions for
Motivating Employees
3. Provide an Effective Reward System

1. Job Redesign: involves matching the job to An effective reward system has the following
the person doing it. It has basically 2 elements:
elements;
i. Rewards need to be created that satisfy the
i. Job enlargement: -increasing the variety or basic needs of all employees.
the number of tasks a job includes.
ii. Rewards should be competitive and matching
ii. Job enrichment: Introduce new and more those of competing organisations in the same
difficult tasks not previously handled, increase industry.
the accountability of individuals for their own
work and assign individuals tasks that enable iii. Rewards need to be equitable. Employees
them to become experts. should perceive that rewards or outcomes are
equal to the inputs. Experience, ability, effort
2. Use Goals: - Literature on goal-setting theory and other considerations should explain the
suggests that managers should ensure that differences in pay & other obvious outcomes.
employees have hard, specific goals and
feedback on how well they are doing in
achieving those goals. Managers should
ensure that goals are attainable.
Practical Suggestions for
Motivating Employees
4. Create a Supportive Climate: this involves 5. Treating People as Individuals: - Managers
developing a climate in which employees need to recognise people as individuals and
needs can be met. It includes the following: to work with their individual differences .
People are motivated differently.
a. Philosophy of Management
6. Empowerment:- It involves giving authority ,
A managerial philosophy built on positive autonomy and trust to employees. Employees
premise is a strong philosophy on which to need to be encouraged to break the rules in
establish definite and productive operating order to get on with the job.
relationships.
b. Developing Management Expectations:
Management expectations for performance
and behavior need to be developed and
communicated to employees. For employees
to function , they need to know what the
manager really wants.
c. Actions resulting from philosophy: Managers
should assist employees in the attainment of
his or her job by removing barriers,
developing mutual goal setting opportunities
& encouraging positive risk taking
Chapter VI:
CONTROL
THE TERM “CONTROL” HAS A SPECIFIC MEANING,
NAMELY THE PROCESS BY WHICH MANAGEMENT
ENSURES THAT THE ACTUAL ACTIVITIES FIT IN WITH
THE PREDETERMINED GOALS AND PLANNED
ACTIVITIES.
The Nature of Control
 The aim of control is to keep deviations to a minimum. In a sense
control is supervisory – it supervises and measures the progress
made towards attaining a particular goal. Control is a continuous
process and is interwoven with planning, organizing, and leading.
 The control system informs management of the following:
 A control process is necessary in an organisation for the following
reasons.
 Activities are proceeding according to plan.
 Things are not proceeding according to plan.
 The situation has changed.
The Control Process
Measuring Actual
Performance
Step One

GOALS & Comparing Actual

OBJECTIVES Performance against
Standard
Step Two
Taking Managerial
Action
Step Three
The Importance Of Control
Importance of Control Practical Example
A fuel service station setting a target of selling 200,000 litres, the manager
1. Helps in Planning will monitor daily sales of fuel. This monitoring is an intergral part of the
control process.At the end of the week, the manager will know the variance
from target.

Sticking to the example of the Service station, it is easier to detect

2. Detect problems before they are consumption patterns of a product if you are monitoring daily activities. The
manager can avoid stock out of critical products.
Critical
A manager should never assume that delegated tasks are being done, there
3. Delegated tasks become is need for periodic assessment as a checking mechanism. , for example
checking weekly reports from sales men from different territories.
manageable
Constant monitoring of actual cost prices against planned prices will help a
4. Helps cope with change and business in planning for the future

uncertainty
Effective control helps in the proper allocation of resources e.g. allocation of
5.Avoid wasting resources mobile selling vans in areas where there is poor road network such that
customers may not be able to come to service centers.

Monitoring business performance enables an organisation to be better

6.Cope with increased competition prepared for competition.

By detecting and rectifying problems an organisation will be able to improve

7.Ensure Better Quality its quality.,
The Control Process
STEP One – Measuring Actual Performance
Managers use the following sources of information for measuring
performance: personal observations, statistical reports, oral reports &
written reports. Depending on the organisation, the following aspects
can be measured: turnover,abseentesim rate, number of deliveries per
day, average delivery time.
The Control Process
STEP Two: Comparing Actual Performance Against Standard
This step determines the variation between actual performance and the
standard. At this stage it is advisable an acceptable range of variation.
Deviations outside this range need attention. Both positive and negative
variations outside the acceptable range may require managerial action
The Control Process
STEP Three – Taking Managerial Action
Managers can choose among the three possible courses of action: DO
NOTHING,CORRECT ACTUAL PERFORMANCE OR REVISE STANDARDS.
CORRECT ACTUAL PERFORMANCE
Depending on the nature of the problem managers may correct
performance variations by undertaking training programmes,
disciplinary action or new compensation mechanisms
The Control Process
Managers can take immediate action or they may try to look at the
source of the problem before taking appropriate action.
REVISE STANDARD
Its possible that the variance was a result of an unrealistic standard-too
low or too high a goal. In that case the standard needs corrective
action. If performance consistently exceeds a goal the manager should
think of revising targets
Controlling for
Organisational Performance
Organisational Performance – the accumulated results of all
organisational work activities
WHAT ARE THE MEASURES OF ORGANISATIONAL PERFORMANCE
Organisational Productivity-the amount of goods/services produced
divided by the inputs needed to generate that output. Organisations
need want to produce the most using the least amount of inputs.
Controlling for
Organisational Performance
Organisational Effectiveness – how well appropriate organisational
goals are and how well those goals are being met.
Industry and Company Rankings- Rankings are determined by specific
performance measures and this is normally done certain organisations
like the Fortune Best Companies, Forbes, Industry Week, Business Week
Tools for Measuring for
Organisational
Performance
BENCHMARKING OF BEST PRACTICES

Benchmarking is the search for best

practices among competitors or non-
competitors that lead to superior
performance. It is used to identify specific
performance gaps and potential areas of
improvement
Tools for Measuring
Organisational Performance
FEEDFORWARD/CONCURRENT & FEEDBACK CONTROLS

Managers can implement controls before

an activity begins, during the time the
activity is going and after the activity has
been completed:
Tools for Measuring
Organisational Performance
1)Feed forward Control: It prevents problems because it takes place
before the actual activity. The key to feed forward control is taking
managerial action before the problems occur. For example
McDonalds sent a team of quality experts to help Russian farmers
grow potatoes before they set up shop in Moscow.
Tools for Measuring
Organisational Performance
3) Feedback Control: - Control takes place after the activity is done.
The problem with this control is that by the time the manager has the
information , the problems will have already occurred leading to waste
or damage.
Tools for Measuring
Organisational Performance
Concurrent Control : Takes place while the activity is in progress. The
best known form of concurrent control is direct supervision or
Management By Walking Around( MBWA) – When a manager is in the
work area interacting directly with employees.
Tools for Measuring
Organisational Performance
FINANCIAL CONTROLS
They are necessary for a business to earn profit. Managers use
budget analysis and ratio analysis to measure financial performance
of the organisation- liquidity ratios, leverage rations ,activity ratios &
profitability ratios.
Tools for Measuring
Organisational Performance
BALANCED SCORECARD
It looks at four areas that contribute to an organisations
performance: financial, customer, internal processes and
people/innovation/growth Assets. Managers should develop goals in
each of the four areas and then measure whether the goals are being
met.
Tools for Measuring
Organisational Performance
INFORMATION CONTROLS
Informational controls are used in two ways:
1.As a tool to help managers control other organisational activities
2.As an organisational area managers need to control
Tools for Measuring
Organisational Performance
HOW IS INFORMATION USED IN CONTROLLING?
Managers require information to determine the actual performance
against the standard performance as well as to determine whether the
deviations are acceptable so as to develop appropriate courses of action.
This information normally comes from a Management Information
System( MIS)
Tools for Measuring
Organisational Performance
CONTROLLING INFROMATION
Due to the importance of information to an organisation, managers
must have secure controls in place to protect the information for
example data encryption, system firewalls and data backups.
Communication
1. A PROCESS OF CONVEYING IDEAS AND FEELINGS.
2. THE TRANSFER AND UNDERSTANDING OF MEANING FROM ONE PERSON TO ANOTHER
NB: STUDENTS ARE EXPECTED TO READ THROUGH THIS TOPIC ON THEIR OWN.
Human resources
management
Human resource management is the strategic approach to the effective
management of organization workers so that they help the business
gain a competitive advantage
HRM PROCESS
IT CONSISTS OF THREE BROAD STAGES

Identifying & Providing Retain

selecting employees with competent and
competent up to date skills high performing
employees & knowledge employees
Identifying & selecting
competent employees
THIS STAGE HAS THREE PROCCESSES:
1. Human resources planning: the process by which managers ensure
that they have the right number and kinds of capable people in the
right place at the time. It involves assessing current human resources
and meeting future hr needs
2. recruitment: locating , identifying and attracting capable applicants-
this is guided by job analysis which may point to the need for recruiting
people- sources of recruitment are the internet etc
HUMAN RESOURCES
MANAGEMENT
3. Selection :- a process of screening job applicants to ensure that the
most appropriate candidates are hired. Managers need to select
carefully to minimise hiring errors.
Examples of selection tools are: application forms, written tests,
interviews, performance simulation tests etc
Providing employees with
needed skills and knowledge
This encompasses two issues:
1.Orientation – introducing a new employee to his or her job and the
organisation – an employee is introduced to things like the history of
the company, the goals of the company, procedures and rules
2.Employee training- equipping the employee with the necessary
expertise required for the job . Typical training methods – on the job
training, job rotation, mentoring and coaching
Retaining competent and high
preforming employees
It encompasses three issues:
1.Performance management: an evaluation of employee performance –
this is normally done through performance appraisal
2.Compensation & benefits:- coming up with a motivational
compensation system for example paying employees according to the
skills they possess or linking performance to pay
3.Career development: the assistance given to an employee for career
progression
Corporate Social
Responsibility &
Ethics
CORPORATE SOCIAL RESPONSIBILITY IMPLIES THAT
A MANAGER IS OBLIGED TO TAKE ACTIONS THAT
ALSO PROTECT AND ENHANCE SOCIETY’S
INTERESTS.
 CSR
Terms 2.Social responsiveness: is when a
company engages in social actions
1.Social Obligation: in response to some popular social
Is when a firm engages in social need. Managers are guided by
actions because of its obligation to social norms and values and make
meet economic and legal practical market oriented
responsibilities. The organisation decisions about their actions
does what its obligated to do &
nothing more.It assumes that the
responsibility of management is to make
profits( Classical View)
CSR
Social Responsibility
This is the business intention,
beyond its legal and economic
obligations to do the right things
and act in ways that are good for
the society. A socially responsible
organisation does what is right
because it feels it has an ethical
responsibility to do so
 CSR
TO WHOM IS BUSINESS RESPONSIBLE
Primary stakeholders are those identified in the micro-environment and market environment,
whereas secondary stakeholders are present in the macro-environment of the organization..
1. PRIMARY STAKEHOLDERS
• It Includes the owners who are interested in the pursuit of profits, the achievement of goals.
• Shareholders and the board of directors consider the promotion of the organization's image,
earnings per share, and profit sharing.
• Employees are concerned with training and development opportunities, their conditions of
service, working conditions, remuneration, security, self-actualisation and job satisfaction.
• Suppliers are important stakeholders because they supply raw materials, loans, and credit to the
organisation and the organisation’s decision and its socially responsible behaviour affect them.
• Customers are concerned with the provision of safe products of good quality, with service of a
high standard, with product improvement, consumer protection, and marketing actions.
CSR
Secondary stakeholders

Include the local community, the country as a whole, and the international
environment. Local communities demand social responsibility in areas such
as:-
1. Environmental protection and ecological control;
2. Low-cost housing;
3. Support for health and medical services;
4. Training and development of the local population;
5. Donations to churches and religious institutions;
6. Sponsorships for schools
7. Preservation of historic buildings and heritage sites;
8. The creation and promotion of an economic infrastructure.
 CSR
ARGUMENTS FOR SOCIAL RESPONSIBILITY
1.Public Expectations
Public opinion now supports businesses pursuing and social goals
2. Long Run Profits
Socially responsible companies tend to have more secure long term profits
3. Ethical Obligation
Businesses should be socially responsible because responsible responsible actions
are the right thing to do.
4. Public Image
Businesses can create a favourable public image by pursuing social goals
5. Better Environment
Business involvement can help solve difficult social problems
CSR
6. Discouragement of further government Regulationy
By ben coming socially responsible businesses can expect less government
regulation
7. Stockholder Interests
Social responsibility will improve a business stock price in the long run
8. Possession of Resources
Businesses have the resources to support public and charitable projects
that need assistance
9.Superiority of prevention over cures
Businesses should address social problems before they become serious and
costly to correct
CSR
ARGUMENTS AGAINST SOCIAL RESPONSIBILITY
1.Dilution of Purpose
Pursuing social goals dilutes business primary purpose – economic
productivity
2. Costs
Socially responsible actions are a cost to the organisation
3. Lack of skills
Business leaders lack the necessary skills to address social issues
 Managerial Ethics
DEFINITIONS MANAGERIAL ETHICS
• Standards of behaviour that guide individual
1.Ethics – An individual’s personal beliefs about
whether a behaviour, action, or decision is right managers in their work
or wrong. • Many decisions that managers make require
them to consider who may be affected – in
terms of the result or process
2.Ethics – Behaviour that conforms to generally There are three areas of concern for
accepted social norms managerial ethics
1.The relationship of the organisation to the
employee.
3.Unethical Behaviour – Behaviour that does
not conform to generally accepted social 2.The relationship of the employee to the
norms. organisation.
3.The relationship of the organisation to other
4. Social Norms- Formal laws adopted stakeholders.
by a society that reflect the prevailing ethical
standards of its citizens.
Unethical Business Practices
in Zimbabwe
1. Unsafe Working 6. Employment Discrimination
Conditions- have been reported in some companies
especially the manufacturing industries- shortage of goggles, 7. Abusive/Intimidating Behavior.
gloves & work suits

8. Receiving/Offering bribes,
2. Sexual Harassment-some managers have kickbacks or incentives - now rampant
been arraigned before the courts
in almost every sector, including the ZRP who are bribed with
motorists.
3. Tax evasion – failure to pay
VAT, Income & PAYEE - ZIMRA is always 9. Termination without Fair
on the lookout for companies trying to evade taxes.
Notice/cause - the labour court has a huge back
log of cases of unfairly dismissed employees .
4. Environmental Breaches – Companies
in Harare have always been reported to dipose raw effluent in
Manyame river
10. Theft/ Fraud: personal use of
company property- Employees entrusted
5. Availability of Low quality with the safe custody of financial resources have resorted to
stealing. E.g. the former ZIFA C.E.O, Air Zimbabwe is currently
products - Some cheap imports have found their way doing a forensic audit. Hwange Colliery has also approached
forensic auditors.
into Zimbabwe. These are imported mainly from China.