UBO Student Guide

UBO Student Guide V1.
1

UNDERSTANDING BUSINESS ORGANISATIONS

Student Guide
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UBO Student Guide V1.1

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Modification History

Version Date Revision Description
V1.0 Feb 2011 For Release
V1.1 J une 2011 Minor amendments

NCC Education Limited, 2011
All Rights Reserved
The copyright in this document is vested in NCC Education Limited. The document must not be
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CONTENTS
1. Module Overview and Objectives ......................................................................................... 5
2. Learning Outcomes and Assessment Criteria .................................................................... 5
3. Syllabus ................................................................................................................................... 6
4. Related National Occupational Standards ........................................................................... 7
5. Resources ............................................................................................................................... 8
6. Pedagogic Approach ............................................................................................................. 8
6.1 Lectures ........................................................................................................................... 8
6.2 Tutorials ........................................................................................................................... 8
6.3 Private Study ................................................................................................................... 8
7. Assessment ............................................................................................................................ 9
8. Further Reading List .............................................................................................................. 9
Topic 2: Different Types of Organisation ................................................................................. 11
Learning Objectives ............................................................................................................... 11
Timings ................................................................................................................................... 11
Private Study .......................................................................................................................... 12
Tutorial Exercises ................................................................................................................... 13
Topic 3: Organisational Structures .......................................................................................... 15
Timings ................................................................................................................................... 15
Private Study .......................................................................................................................... 16
Topic 4: Mechanistic and Organic Forms of Organisational Structure ................................ 19
Timings ................................................................................................................................... 19
Private Study .......................................................................................................................... 20
Topic 5: Human Resource Management .................................................................................. 23
Timings ................................................................................................................................... 23
Private Study .......................................................................................................................... 24
Topic 6: Organisations and the Competitive Environment .................................................... 27
Timings ................................................................................................................................... 27
Private Study .......................................................................................................................... 28
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Topic 7: Change in Organisations ............................................................................................ 31
Timings ................................................................................................................................... 31
Private Study .......................................................................................................................... 32
Topic 8: Implementing and Managing Organisational Change.............................................. 35
Timings ................................................................................................................................... 35
Private Study .......................................................................................................................... 36
Topic 9: Effective Communications in Organisations ............................................................ 39
Timings ................................................................................................................................... 39
Private Study .......................................................................................................................... 40
Topic 10: Monitoring Organisational Performance - Financial and Budgetary Control ........ 43
Timings ................................................................................................................................... 43
Private Study .......................................................................................................................... 44
Topic 11: Optimising Organisational Performance - Quality and Operational Measures ..... 47
Timings ................................................................................................................................... 47
Private Study .......................................................................................................................... 48
Topic 12: The IT Environment within Business ........................................................................ 51
Timings ................................................................................................................................... 51
Private Study .......................................................................................................................... 52
Topic 13: New Organisational Structures and Opportunities through IT ............................... 55
Timings ................................................................................................................................... 55
Private Study .......................................................................................................................... 56

Overview

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1. Module Overview and Objectives
The ability to understand the structure of an organisation and the factors that shape structures is an
important skill in business. Managers need to have a good appreciation of the changes that they can
make in order to improve organisational performance.
This module introduces the objectives, roles, functions and various forms of business organisation
as they adapt to a dynamic and changing environment. Students will also look at the role of
information and technology within an organisation and how organisational efficiency and
performance can be monitored.
2. Learning Outcomes and Assessment Criteria
Learning Outcomes;
The Learner will:
Assessment Criteria;
The Learner can:
1. Evaluate various types of organisation 1.1 Compare and contrast the form, aims,
objectives and operations of business
organisations across a number of sectors
2. Evaluate various forms of
organisational structure
2.1 Discuss the process of organisational
development
2.2 Compare and contrast the mechanistic and
organic forms of organisation structure
2.3 Analyse the competitive forces exerting
influences on an organisation and its
structure
3. Examine the process of
organisational change
3.1 Compare and contrast types of
organisational change
3.2 Discuss the steps in the change process for
organisations
3.3 Assess the impact of resistance to change on
organisational performance
4. Assess the use of communication in
organisations
4.1 Analyse the barriers to effective
communication
4.2 Examine the ways in which communication
processes can help or hinder organisational
performance
5. Examine how organisational
performance is monitored
5.1 Discuss the control processes put in place in
organisations
5.2 Compare and contrast the use of budgetary
and non-budgetary methods of control
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6. Evaluate the use of IT systems on the
performance and structure of an
organisation
6.1 Assess how the effective use of IT can
impact upon organisational performance
6.2 Explain how the Internet and collaboration
technologies have enabled new forms of
organisation
3. Syllabus
Topic
No.
Title Proportion Content
1 Different Types of
Organisation
1/12

2 hours of lectures
1 hour of tutorials
Non-incorporated organisations, limited
companies and other business
organisations.

Learning Outcome: 1
2 Organisational
Structures
1/12

2 hours of lectures
1 hour of tutorials
Alternative forms of organisation structure.
Review advantages and disadvantages of
the main types.

Learning Outcome: 1
3 Mechanistic and
Organic Forms of
Organisational
Structure
1/12

2 hours of lectures
1 hour of tutorials
Compare and contrast the features of
mechanistic and organic forms of
organisational structure.

Learning Outcome: 2
4 Human Resource
Management
1/12

2 hours of lectures
1 hour of tutorials
The impact of Human Resource
Management (HRM) on organisational
performance, and the key aspects of
HRM.

Learning Outcome: 3
5 Organisations
and the
Competitive
Environment
1/12

2 hours of lectures
1 hour of tutorials
The main sets of forces exerting
influences on organisations.
Tools to analyse the competitive
environment.

Learning Outcome: 2
6 Change in
Organisations
1/12

2 hours of lectures
1 hour of tutorials
The motivations for organisational change,
the types of change that can be introduced
and the impact of organisational culture on
potential change.

Learning Outcome: 3
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7 Implementing and
Managing
Organisational
Change
1/12

2 hours of lectures
1 hour of tutorials
The steps in the change process,
resistance to change and managing
change successfully.

Learning Outcome: 3
8 Effective
Communication in
Organisations
1/12

2 hours of lectures
1 hour of tutorials
Different types of communication
channels, advantages and disadvantages
of each, and selecting the appropriate
communication medium.

Learning Outcome: 4
9 Monitoring
Organisational
Performance
Financial &
Budgetary
Control
1/12

2 hours of lectures
1 hour of tutorials
The importance of financial results and
budgetary control in evaluating
organisational performance.

Learning Outcome: 5
10 Optimising
Organisational
Performance
Quality and
Operational
Measures
1/12

2 hours of lectures
1 hour of tutorials
The use of quality control, Total Quality
Management (TQM) and operational
systems.

Learning Outcome: 5
11 The IT
Environment
Within Business
1/12

2 hours of lectures
1 hour of tutorials
The use of technology within the
organisation for enhancing business
activities, decision making and operations.

Learning Outcome: 6
12 New
Organisational
Structures and
Opportunities
Through IT
1/12

2 hours of lectures
1 hour of tutorials
The use of evolving networking, e-
commerce and social media technologies
within organisations, and their impact on
organisational structures and ways of
working.

Learning Outcome: 6
4. Related National Occupational Standards
The UK National Occupational Standards describe the skills that professionals are expected to
demonstrate in their jobs in order to carry them out effectively. They are developed by employers
and this information can be helpful in explaining the practical skills you have covered in this module.
Related National Occupational Standards (NOS)
Sector Subject Area:
15.3 Business management

Related NOS:
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BAA111 Respond to change in a business environment
BAD122 Manage and evaluate an information system
5. Resources
Lecturer Guide: This guide contains notes for lecturers on the organisation of each topic, and
suggested use of the resources. It also contains all of the suggested
exercises and model answers.
PowerPoint Slides: These are presented for each topic for use in the lectures. They contain many
examples which can be used to explain the key concepts. Handout versions
of the slides are also available; it is recommended that these are distributed to
students for revision purposes as it is important that students learn to take
their own notes during lectures.
Student Guide: This contains the topic overviews and all of the suggested exercises.
6. Pedagogic Approach
Suggested Learning Hours
Lectures: Tutorial: Seminar: Laboratory: Private Study: Total:
24 12 - - 114 150
The teacher-led time for this module is comprised of lectures, seminars, laboratory sessions and
tutorials. You will need to bring this Student Guide to all classes for this module. The breakdown of
the hours for each topic is given in the topic notes below. Generally, the order of study should be to
complete private study work before tutorials as your private study work will be reviewed during the
tutorial.
6.1 Lectures
Your lecturer will be presenting the basic knowledge and the theoretical concepts required for the
topic during this time. He/she will use PowerPoint slides during the lecture time and you will be
expected to take notes.
You will also be encouraged to be active during this time and discuss and/or practice the concepts
covered. Lectures will include question and answer elements to promote participation and to allow
your lecturer to check whether you understand the concepts they are covering.
6.2 Tutorials
These are designed to deal with the questions arising from the lectures and private study sessions.
You should think carefully beforehand about any areas in which you might need additional guidance
and support and use this time to discuss these with your teacher.
6.3 Private Study
This Student Guide also contains details of the Private Study exercises. You are expected to
complete these exercises to improve your understanding. Your tutor will set deadlines for the
completion of this work and go over the suggested answers with you. The deadlines will usually be
before the scheduled tutorials for that topic. Some of the private study tasks may require you to work
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in a small group so you will need to plan your time carefully and ensure that you can meet with your
group members to complete the work required before the deadline.
You should also use this time to revise the content of lectures to ensure understanding and conduct
extra reading (using the supplementary textbooks or other materials available in the library or
online). You should bring any questions to the tutorial for additional guidance and support.
7. Assessment
This module will be assessed by means of an assignment.
8. Further Reading List
A selection of sources of further reading around the content of this module must be available in your
Accredited Partner Centres library. The following list provides suggestions of some suitable
sources:
Boddy, D. (2005), Management: An Introduction, 3rd edition, Prentice Hall
ISBN-10: 027369586X
ISBN-13: 978-0273695868

OR

Boddy (2007), Management: An Introduction, 4th edition, Prentice Hall
ISBN-10: 1405887346
ISBN-13: 978-1405887342

Campbell and Craig (2005), Organisations and the Business Environment, 2nd edition. Butterworth-
Heinemann
ISBN-10: 0750658290
ISBN-13: 978-0750658294

Mullins (2010), Management & Organisational Behaviour, 9th edition, Prentice Hall
ISBN-10: 027372861X
ISBN-13: 978-0273728610

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Topic 1

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Topic 2: Different Types of Organisation
Learning Objectives
This topic provides an overview of the various types of business organisation found today, together
with a review of the advantages and disadvantages of each type.
On completion of the topic, you will be able to:
Describe the different types of non-incorporated organisations
Explain the importance of limited liability when setting up a business organisation
Understand the key differences between a public limited company and a private limited company
Explain how the franchise business model operates
Timings
Lectures: 2 hours
Private Study: 9.5 hours
Tutorials: 1 hour
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Private Study
The time allocation for private study in this topic is expected to be 9.5 hours.
You are expected to undertake the following work during private study.
Before the lecture:
Research the different types of organisational structures, how they can be classified, the advantages
and disadvantages of each approach, and how an organisation can decide upon which is the best
approach for its own particular needs.
After the lecture:
The following exercises should be completed before the tutorial. Students should bring all materials
they have collected as part of these exercises and be prepared to discuss them during the tutorial.

Exercise 1:
Using the Internet, you should research the concept of Limited Liability. You should then write a
briefing note of no more than 500 words which explains its historical development and gives the
economic justifications for its development.

Exercise 2:
Select examples of one public limited company and one private limited company in your region and
briefly explain the processes you would have to go through in order to acquire shares in both
companies.

Exercise 3:
Assume that you are interested in becoming a franchisee and are looking for a suitable opportunity.
List and briefly describe SIX key factors that you should consider when selecting an appropriate
franchise, explaining why each is important to you.

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Tutorial Exercises
The time allowance for tutorials in this topic is 1 hour.

Exercise 1:
Explain why three business partners establishing up a new business might decide to set up a
Partnership rather than a Limited Company.

Exercise 2:
Explain why the structure of a Limited Company shows the shareholders at the head of the
structure.

Private Study Exercise 1:
Using the Internet, you should research the concept of Limited Liability. You should then write a
briefing note of no more than 500 words which explains its historical development and gives the
economic justifications for its development.

Select examples of one public limited company and one private limited company in your region and
briefly explain the processes you would have to go through in order to acquire shares in both
companies.

Assume that you are interested in becoming a franchisee and are looking for a suitable opportunity.
List and briefly describe SIX key factors that you should consider when selecting an appropriate
franchise, explaining why each is important to you.

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Topic 2

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Topic 3: Organisational Structures
Learning Objectives
This topic provides an overview of the alternative forms of organisation structure, and the benefits
and drawbacks of each.
Describe the main purposes of an organisation chart
Understand the five alternative forms of organisation structure
Understand the advantages and disadvantages of functional, divisional and matrix forms
Explain the division of tasks from a vertical and horizontal perspective
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Private Study
Before the lecture:
Research the different types of organisational charts that companies use, and the limitations of each
of these types of chart. In addition you should use the Internet to identify two examples of software
that can assist in creating organisational charts and establish the main advantages of using such
software.
After the lecture:

Exercise 1:
Consider the administrative staff of a large college or university. What would be the most
appropriate organisational structure for these staff - functional, divisional or matrix? You should put
together a short report of no more than 500 words that explains the reasons for your choice and
clearly demonstrates the benefits that the structure of your choice would deliver.

Exercise 2:
In the slides we suggested that one of the potential drawbacks of working in teams is the fact that
too much time can be spent in debate rather than in action. List SIX other possible drawbacks of
working in teams, and for each of these suggest a possible solution.

Exercise 3:
One of the primary ways of ensuring that the work of employees is co-ordinated is to use information
systems effectively in order to ensure information and knowledge is shared. Using the Internet you
should identify a specific IT system of your choice and state how its main features can help to
ensure greater co-ordination between employees.

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Tutorial Exercises

Exercise 1:
List FIVE reasons why organisation charts are commonly used in businesses of different sizes and
across different industry sectors.

Exercise 2:
You work for an organisation that has a head office and 10 regional offices, each of which are
located over 100 kilometres from the head office. A management consultant has undertaken a study
and recommended that all decision making should be undertaken on a decentralised basis, but your
view is that centralised decision making would be more appropriate. Give THREE reasons for your
view that could be presented to the management consultant in an effort to persuade him to change
his mind.

Consider the administrative staff of a large college or university. What would be the most
appropriate organisational structure for these staff - functional, divisional or matrix? You should put
together a short report of no more than 500 words that explains the reasons for your choice and
clearly demonstrates the benefits that the structure of your choice would deliver.

In the slides we suggested that one of the potential drawbacks of working in teams is the fact that
too much time can be spent in debate rather than in action. List SIX other possible drawbacks of
working in teams, and for each of these suggest a possible solution.

One of the primary ways of ensuring that the work of employees is co-ordinated is to use information
systems effectively in order to ensure information and knowledge is shared. Using the Internet you
should identify a specific IT system of your choice and state how its main features can help to
ensure greater co-ordination between employees.

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Topic 3

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Topic 4: Mechanistic and Organic Forms of Organisational
Structure
Learning Objectives
This topic provides an overview of the main characteristics of mechanistic and organic forms of
organisation structure and the role of contingencies in choosing the most appropriate form.
Compare and contrast the mechanistic and organic forms of organisation structure
Describe how contingencies play a role in selecting the most appropriate form of structure
Understand the influence of the various contingent factors on organisation structure
Explain why management choice is also a factor in deciding upon an organisation structure
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Private Study
Before the lecture:
Research the formal definitions of mechanistic and organic forms of organisational structures,
compare the relative merits of these two approaches and identify a practical example of each type of
approach.
After the lecture:

Exercise 1:
Using the Internet, or any other approach that is applicable, identify an organisation that adopts an
organic organisational structure (if possible, obtain a copy of the structure as an example). Produce
a short report of around 400 words that outlines why you believe the organisation opted for this form
of structure and the benefits that are likely to result from this decision.

Exercise 2:
Give an example to illustrate each of the contingency factors that might influence an organisation's
choice between a mechanistic or organic structure.

Exercise 3:
Investigate J oan Woodwards Manufacturing Technology Study and briefly describe in no more than
400 words the background to the study, how it was undertaken and the main conclusions that arose
out of it.

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Tutorial Exercises
The time allowance for tutorials in this topic is 2 hours.

Exercise 1:
Explain why it is important that an organisational structure supports organisational goals and give
one example of the problems that might be encountered if this was not the case.

Exercise 2:
The example of a Bank was given in the slides to illustrate the concept of Pooled Interdependence.
Give THREE other examples and in each case explain why the example selected is a good
illustration of Pooled Interdependence.

Using the Internet, or any other approach that is applicable, identify an organisation that adopts an
organic organisational structure (if possible, obtain a copy of the structure as an example). Produce
a short report of around 400 words that outlines why you believe the organisation opted for this form
of structure and the benefits that are likely to result from this decision.

Give an example to illustrate each of the contingency factors that might influence an organisation's
choice between a mechanistic or organic structure.

Investigate J oan Woodwards Manufacturing Technology Study and briefly describe in no more than
400 words the background to the study, how it was undertaken and the main conclusions that arose
out of it.

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Topic 4

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Topic 5: Human Resource Management
Learning Objectives
This topic provides an overview of the importance of a human resources department and the
activities it undertakes.
Understand the reasons for the increased interest in human resource management (HRM)
Describe the job analysis process
Explain the strengths and weaknesses of the different approaches to staff recruitment and
selection
Describe the key steps in the performance appraisal process
Timings
Lectures: 2 hours
Tutorials: 1 hour

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Private Study
Before the lecture:
Research the range of activities typically undertaken by a Human Resource Manager within an
organisation. In addition you should identify the key steps in the job analysis process and establish
the main reasons why organisations undertake job analysis within their workforce.
After the lecture:

Exercise 1:
Explain in no more than 250 words why 360 degree feedback is proving increasingly popular as a
means of conducting performance appraisals for members of staff.

Exercise 2:
Locate two e-recruitment websites on the Internet. Evaluate the services that they offer to
prospective job seekers and draw up a list of the strengths and weaknesses of each. Select the one
that you would wish to use if you were looking for a job, giving reasons for your choice.

Exercise 3:
You have been asked to interview some job candidates for the company you work for. List TEN
ways in which you can help to ensure that the interviews are a success.

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Tutorial Exercises

Exercise 1:
List what you believe are the FIVE most important functions undertaken by a Human Resources
Department and give reasons for each of your choices.

Exercise 2:
Explain why performance-related pay has become an increasingly popular way for organisations to
reward their employees.

Explain in no more than 250 words why 360 degree feedback is proving increasingly popular as a
means of conducting performance appraisals for members of staff.

Locate two e-recruitment websites on the Internet. Evaluate the services that they offer to
prospective job seekers and draw up a list of the strengths and weaknesses of each. Select the one
that you would wish to use if you were looking for a job, giving reasons for your choice.

You have been asked to interview some job candidates for the company you for with. List TEN ways
in which you can help to ensure that the interviews are a success.

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Topic 5

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Topic 6: Organisations and the Competitive Environment
Learning Objectives
This topic provides an overview of the main forces exerting influences on organisations.
Understand the environmental forces that exist at different levels and how they can impact upon
organisational performance
Describe how a PEST analysis can be used to identify environmental influences
Explain how Porters five forces analysis is used to determine the competitive environment
Understand the importance of stakeholder analysis
Timings
Lectures: 2 hours
Tutorials: 1 hour

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Private Study
Before the lecture:
Research the main characteristics of a PEST analysis and Porter's Five Forces Model and identify
the key benefits that each are likely to deliver to an organisation.
After the lecture:

Exercise 1:
Select an organisation in your region that you are familiar with. Identify the relative influences of
each of Porter's five forces on this organisation and report on your results (in no more than 750
words).

Exercise 2:
Explain why it is important for an organisation to recognise the relative power of external
stakeholders. Give examples of THREE problems that might potentially arise if full account is not
paid to a powerful external stakeholder.

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Unit 7

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Tutorial Exercises

Exercise 1:
Briefly explain why it is important for an organisation to undertake an Environmental Analysis on a
regular basis.

Exercise 2:
Select a stakeholder of an organisation (this can be any stakeholder of your choice) and list FIVE
expectations of the organisation which that stakeholder could reasonably have.

Select an organisation in your region that you are familiar with. Identify the relative influences of
each of Porter's five forces on this organisation and report on your results (in no more than 750
words).

Explain why it is important for an organisation to recognise the relative power of external
stakeholders. Give examples of THREE problems that might potentially arise if full account is not
paid to a powerful external stakeholder.

Unit 7

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Topic 6

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Topic 7: Change in Organisations
Learning Objectives
This topic provides an overview of the importance of change within today's organisations, together
with the most common types of change.
Understand the context of change
Describe the four common types of change
Explain how the decision to initiate a change project is made
Understand why cultural change and organisational change are bound together
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Topic 7

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Private Study
Before the lecture:
Research the reasons why organisations need to change. In addition you should seek to define what
is meant by the "culture" of an organisation.
After the lecture:
The following exercises should be completed before the tutorial. Students should bring any materials

Exercise 1:
Undertake some background research on an organisation in your region who you know has
undergone some form of major change in recent years. Produce a short report of no more than 750
words that addresses the following points:
What was the motivation for the change (e.g. shrinking market, new opportunity, merger or
acquisition etc)?
Over what time period did the change take place?
What were the key characteristics of the change?
How successful has the change exercise been?

Exercise 2:
Two organisations that are frequently cited as paying significant attention to their corporate culture
are IBM and HP. Undertake research on both companies and summarise in no more than 50 words
for each the specific culture of both companies.
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Tutorial Exercises

Exercise 1:
Briefly define what is meant by a "Systems Change" and give THREE examples of such a change.

Exercise 2:
Explain why the culture of an organisation is an important factor in implementing change
successfully within that organisation.

Undertake some background research on an organisation in your region who you know has
undergone some form of major change in recent years. Produce a short report of no more than 750
words that addresses the following points:
What was the motivation for the change (e.g. shrinking market, new opportunity, merger or
acquisition etc)?
Over what time period did the change take place?
What were the key characteristics of the change?
How successful has the change exercise been?

Two organisations that are frequently cited as paying significant attention to their corporate culture
are IBM and HP. Undertake research on both companies and summarise in no more than 50 words
for each the specific culture of both companies.

Topic 7

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Topic 7

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Topic 8: Implementing and Managing Organisational Change
Learning Objectives
This topic provides an overview of the strategies for successfully implementing change within an
organisation.
Describe the four models of change
Explain how a change project can change internal elements within an organisation
Understand the reasons for resistance to change and how such resistance can be overcome
Describe a process for the successful management of change
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Private Study
Before the lecture:
Research the strategies that can be adopted for implementing organisational change and identify
the role that effective project management can play in ensuring that organisational change is
successful.
After the lecture:
The following exercises should be completed before the tutorial. Students should bring any
materials they have collected as part of these exercises and be prepared to discuss them during the
tutorial.

Exercise 1:
Undertake further research of Kurt Lewin's three-step model. Taking the results of your research, put
together practical guidance on how to use the framework, using bullet points to illustrate the
individual activities within each of the three steps.

Exercise 2:
Describe a situation where you have encountered some resistance to a change that you were
planning to introduce (in your work, college or home life) and explain the measures you took in order
to overcome this resistance.

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Tutorial Exercises

Exercise 1:
The major themes of a change project are:
Define objectives
Allocate responsibilities
Fix deadlines and milestones
Set budgets
Monitor and control
Briefly explain the importance of each of these themes in ensuring that the project is a success.

Exercise 2:
Explain why internal "politics" are an important factor in ensuring that organisational change is
implemented successfully.

Undertake further research of Kurt Lewin's three-step model. Taking the results of your research, put
together practical guidance on how to use the framework, using bullet points to illustrate the
individual activities within each of the three steps.

Describe a situation where you have encountered some resistance to a change that you were
planning to introduce (in your work, college or home life) and explain the measures you took in order
to overcome this resistance.

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Topic 8

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Topic 9: Effective Communications in Organisations
Learning Objectives
This topic provides an overview of the different types of communication channels used in today's
organisations, together with the advantages and disadvantages of each.
Explain the difference between informal and formal communication
Describe the key components of the communication process
Understand the main factors in achieving effective communication
Explain the concepts of micro- and macro-barriers to communication
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Private Study
Before the lecture:
Research the key factors in effective communication and the main barriers to achieving effective
communication. In addition, you should use the Internet to gain an understanding of the concept of
"media richness".
After the lecture:
tutorial.

Exercise 1:
You are the manager of a department with 25 staff. As part of a cost cutting exercise you have been
advised that five of the staff will need to be made redundant. How should you communicate the
decision to the five staff involved and to the rest of the staff within the department? Give the reasons
for your decision.

Exercise 2:
Explain why non-verbal communication is an important part of the communication process. Give an
example of how poor non-verbal communication could cause problems in an interview situation.

Exercise 3:
List six potential problems of using email as a communication medium. Suggest a practical solution
for each of the problems you have identified.

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Tutorial Exercises

Exercise 1:
Explain why effective communicators need to understand the importance of two-way
communications.

Exercise 2:
Define what is meant by informal communication systems within an organisation and give THREE
examples of such communications.

You are the manager of a department with 25 staff. As part of a cost cutting exercise you have been
advised that five of the staff will need to be made redundant. How should you communicate the
decision to the five staff involved and to the rest of the staff within the department? Give the reasons
for your decision.

Explain why non-verbal communication is an important part of the communication process. Give
three examples of how poor non-verbal communication could cause problems in an interview
situation.

List six potential problems of using email as a communication medium. Suggest a practical solution
for each of the problems you have identified.

Page 42 of 57

Topic 9

Page 43 of 57

Topic 10: Monitoring Organisational Performance - Financial
and Budgetary Control
Learning Objectives
This topic provides an overview of the use of financial results and budgetary control for evaluating
organisational performance.
Describe the role of the finance function within an organisation
Understand the basic types of financial reports
Understand the importance of financial results to evaluate performance
Explain the role of budgeting in ensuring internal activities are controlled
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Page 44
Private Study
Before the lecture:
Undertake research in order to gain an understanding of the following terms: cash flow, profit & loss
account, and balance sheet. Identify one practical example of each of these.
After the lecture:
tutorial.

Exercise 1:
Imagine a scenario where you are a self employed management consultant. Prepare an annual
budget for your business, clearly showing the income you expect to receive together with the
projected levels of expenditure, both in terms of your own salary and all associated business
expenses. You should make the budget as realistic as possible by breaking down your expenditure
into a number of different categories (e.g. marketing, travel, subsistence, accountancy fees, website
costs etc.). Explain briefly how you intend to monitor your performance against this budget.

Exercise 2:
Define what is meant by depreciation and explain briefly, with the aid of an example, why it is
important to take account of depreciation in a company's financial figures,

Exercise 3:
Explain briefly (in no more than 100 words) what is meant by double-entry bookkeeping.

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Page 45
Tutorial Exercises

Exercise 1:
Briefly explain the key differences between a cash flow statement and a profit & loss account.

Exercise 2:
List FIVE components of a corporate budget.

Imagine a scenario where you are a self employed management consultant. Prepare an annual
budget for your business, clearly showing the income you expect to receive together with the
projected levels of expenditure, both in terms of your own salary and all associated business
expenses. You should make the budget as realistic as possible by breaking down your expenditure
into a number of different categories (e.g. marketing, travel, subsistence, accountancy fees, website
costs etc.). Explain briefly how you intend to monitor your performance against this budget.

Define what is meant by depreciation and explain briefly, with the aid of an example, why it is
important to take account of depreciation in a company's financial figures,

Explain briefly (in no more than 100 words) what is meant by double-entry bookkeeping.

Page 46 of 57

Topic 10

Page 47 of 57

Topic 11: Optimising Organisational Performance - Quality and
Operational Measures
Learning Objectives
This topic provides an overview of the role of quality management and quality systems within
organisations.
Describe what is meant by quality and why it is important to an organisation and its customers
Understand the role of service level agreements (SLAs) in the customer-supplier relationship
Explain the principles of total quality management (TQM)
Understand the features and benefits of just-in-time (J IT)
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Page 48
Private Study
Before the lecture:
Undertake research in order to obtain an understanding of the following terms: quality management,
Total Quality Management (TQM) and J ust in Time (J IT) production.
After the lecture:
tutorial.

Exercise 1:
Service level agreements (SLAs) are a common form of agreement between a customer and a
supplier. Summarise in no more than 250 words the potential benefits of SLAs to both customers
and suppliers. Locate two examples of SLAs on the Internet and compare and contrast their content
- what are the common features and in what way do they differ. Which one would you opt for if you
were a prospective customer?

Exercise 2:
Assume that you are a consultant trying to persuade a client to implement Total Quality
Management (TQM). List SIX benefits of TQM that you believe would convince them that it is a good
idea to proceed.

Exercise 3:
Many organisations become accredited to the ISO 9000 quality standard. Explain in no more than
300 words why an organisation might seek such accreditation. Locate the website of a company that
has become accredited and is displaying the ISO certification log. Briefly describe any ways in which
they are seeking to use the accreditation as either a marketing tool or a differentiator from their
competitors.

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Page 49
Tutorial Exercises

Exercise 1:
You are the newly appointed Quality Manager within an organisation and have been asked to give a
presentation to the senior management on why quality is important to their business. List the FOUR
main reasons which you will include in your presentation.

Exercise 2:
Briefly explain how the PDCA cycle helps to ensure continuous improvement.

Service level agreements (SLAs) are a common form of agreement between a customer and a
supplier. Summarise in no more than 250 words the potential benefits of SLAs to both customers
and suppliers. Locate two examples of SLAs on the Internet and compare and contrast their content
- what are the common features and in what way do they differ. Which one would you opt for if you
were a prospective customer?

Assume that you are a consultant trying to persuade a client to implement Total Quality
Management (TQM). List SIX benefits of TQM that you believe would convince them that it is a good
idea to proceed.

Many organisations become accredited to the ISO 9000 quality standard. Explain in no more than
300 words why an organisation might seek such accreditation. Locate the website of a company that
has become accredited and is displaying the ISO certification log. Briefly describe any ways in which
they are seeking to use the accreditation as either a marketing tool or a differentiator from their
competitors.

Page 50 of 57

Topic 11

Page 51 of 57
Topic 12: The IT Environment within Business
Learning Objectives
This topic provides an overview of the use of technology within organisations for enhancing
business activities.
Understand why the quality of information is important within an organisation
Explain how technology can enhance the way in which an organisation conducts its business
Describe the role of technology in operational activities
Explain how the Internet enables radical changes in organisations
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Page 52
Private Study
Before the lecture:
Undertake research to identify the ways in which Information technology can be used by
organisations for administration, business communications and information gathering, and the
benefits that it can deliver in these areas.
After the lecture:
tutorial.

Exercise 1:
McFarlan & McKenneys IT grid focuses upon four different ways in which organisations use and
rely on technology - strategic, turnaround, factory and support. Describe the characteristics of each
of these categories, using up to 100 words for each. You should also give on example of a practical
way in which the McFarlan & McKenney grid could be used within an organisation.

Exercise 2:
The slides for this topic contained details of five main reasons why IT projects fail. These were:
User needs were not fully understood
Greater emphasis was placed on emerging technologies rather than user requirements
Business changes during development period were not reflected in the system that was
delivered
Time and money needed to develop and implement the system was underestimated
Politics and conflicts emerged which protected the old system
Identify a further four reasons yourself of why IT projects fail. For each of the four reasons you
should briefly explain why this would result in the IT project failing.

Exercise 3:
Briefly describe three real-life examples of how data in an organisation could be turned into
information that would assist managers in their decision making.

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Page 53
Tutorial Exercises

Exercise 1:
Explain why the following factors are likely to lead to the failure of new IT systems:

Exercise 2:
Briefly describe how an electronic point-of sale (EPOS) system can be used to collect information
that will be of benefit to an organisation.

McFarlan & McKenneys IT grid focuses upon four different ways in which organisations use and
rely on technology - strategic, turnaround, factory and support. Describe the characteristics of each
of these categories, using up to 100 words for each. You should also give on example of a practical
way in which the McFarlan & McKenney grid could be used within an organisation.

The slides for this topic contained details of five main reasons why IT projects fail. These were:
Business changes during development period were not reflected in the system that was
delivered
Time and money needed to develop and implement the system was underestimated
Politics and conflicts emerged which protected the old system
Identify a further four reasons yourself of why IT projects fail. For each of the four reasons you
should briefly explain why this would result in the IT project failing.

Briefly describe three real-life examples of how data in an organisation could be turned into
information that would assist managers in their decision making.

Page 54 of 57

Topic 12

Page 55 of 57
Topic 13: New Organisational Structures and Opportunities
through IT
Learning Objectives
This topic provides an overview of the impact of Internet-related technologies upon organisations
and their structures.
Describe the different types of e-business models
Understand how collaborative technologies can facilitate new ways of working in organisations
Explain how Internet-based technologies have enabled remote working and virtual teams
Understand the key issues associated with managing a dispersed workforce effectively
Timings
Lectures: 2 hours
Tutorials: 1 hour
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Page 56
Private Study
Before the lecture:
Undertake research to gain an understanding of the following terms: eCommerce, eBusiness,
intranets, extranets and virtual teams.
After the lecture:
tutorial.

Exercise 1:
Microsoft SharePoint is a leading collaborative software product. You should undertake some
research on SharePoint and then address the following points:
Identify three case studies for SharePoint and summarise the main points of each, using up to
200 words per study.
Compare the results of the three cases studies and identify the organisation that you believe has
achieved the most significant benefits, explaining the reasons for your choice.
Identify a business sector that you feel is particularly well suited to the use of SharePoint, once
again giving reasons for your selection.

Exercise 2:
The organisation you work for has decided to move to a virtual team environment for a number of
activities that it undertakes. As a result you have been informed that you will be working from home
in future and reporting directly to a manager in Canada. The company will supply all of the
necessary IT equipment and provide the communications infrastructure. Briefly describe the FOUR
main concerns you would have about this new way of working and, for each concern, suggest an
action that organisation could take to address it.

Exercise 3:
Briefly describe (in no more than 150 words) three examples of information security threats that
could be posed to an organisation as a result of employees working remotely.

Page 57 of 57
Tutorial Exercises

Exercise 1:
List FOUR financial benefits that an organisation might achieve through the adoption of remote
working for employees.

Exercise 2:
Define what is meant by the term Groupware and list THREE benefits of using this type of
technology.

Microsoft SharePoint is a leading collaborative software product. You should undertake some
research on SharePoint and then address the following points:
Identify three case studies for SharePoint and summarise the main points of each, with up to 200
words per study.
Compare the results of the three cases studies and identify the organisation that you believe has
achieved the most significant benefits, explaining the reasons for your choice.
Identify a business sector that you feel is particularly well suited to the use of SharePoint, once
again giving reasons for your selection.

The organisation you work for has decided to move to a virtual team environment for a number of
activities that it undertakes. As a result you have been informed that you will be working from home
in future and reporting directly to a manager in Canada. The company will supply all of the
necessary IT equipment and provide the communications infrastructure. Briefly describe the FOUR
main concerns you would have about this new way of working and, for each concern, suggest an
action that organisation could take to address it.

Briefly describe (in no more than 150 words) three examples of information security threats that
could be posed to an organisation as a result of employees working remotely.

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