Internal Environment of LSO

management structures (2.1)

Bureaucracy=Anything but an effective organisation.

Vertical Specialisation= Refers to the hierarchy of formal authority and decision making
power within an organisation, chain of command from top down.
Top management= Strategic planning, monitoring the whole organisation.
Middle management= Operational planning, supervision of lower management.
Lower management= Front-line planning. Supervision of operations.
Operations= works/functions

Advantages Disadvantages
*Is clear who reports to who. *good management skills are essential
especially communication between
levels.

Horizontal Specialisation
*organised by function, division and matrix.
*Refers to the growing of people and resources within an organisation. Organise them into
departments, groups, sections and branches.

Functional Specialisation
Staff are organised in various groups based on organisational function, eg Finance or work tasks.

Advantages Disadvantages
*There is a specialists in charge of each area. * Effective communication
* All people in one area work on with other areas is needed
similar tasks. So problems don't eventuate.

Divisional structure
*Staff are organised into groups based on divisons.
*the likely divisions are product service, customers, geographical or type of legal business.

Advantages Disadvantages
*flexibility of tasks. *conflict of interest, for use of time
*Staff can work in different areas *staffing issues may arise if projects
and learn new skills go wrong

Corporate culture (2.2)

Corporate culture= Is the shared values or beliefs of the people within an organisation. It's the
unwritten rules and it is expressed in attitudes and performances of employees. Positives of good
corporate culture are employee morale high. Which leads to better productivity. More PROFIT.

Official Corporate Culture= Is what the BOD (Board of directors) wants, it is unwritten in vision
and mission statements. Established via organisational structures.

Real Corporate Culture= is the relationship among staff usually unwritten. Eg style of dress code,
attitude of employees, customer relations.
 Elements of Corporate Culture
Values=LSO can include honesty, teamwork, quality customer service, employee
particpation.
Symbols= Represent something the organisation believes to be important eg training, sports,
uniform type

Rituals & celebration= regular social occasions, develop sense of belonging to be organisation eg
rewards, birthdays.

Key Management ROLES (2.3)

POLC= Roles of a manager
Planning= Devine & Devise. Is the process of deciding where a team, department or
whole organisation should be heading and how it intends to get there.
Levels of planning
Strategic planning (5 years) eg opening new branches
Tactical planning (6 months-2 years) eg MRP
Operational planning (short terms, daily) eg ordering stock
Stages of planning
Develop objective:(Set goals)
Outline the facts (SWOT=Strenghts, Weaknesses, Opportunities, Threats)
Develop and evaluate alternatives
Select an alternative and implement it.
Evaluate, monitor and review.

Organising= Allocate & Act. The coordinates of resources and systems so that
plans and objectives can be achieved. Resources include; workers, money, time,
knowledge, raw materials and equipment.

Leading=Model & motivate. The process of influencing workers so that they want
to do their best to achieve organisational objectives.
Interpersonal qualities= How they relate to their colleagues.
Informational qualities= Leaders should have knowledge required of a person in their role.
Decision-making qualities=Can make decision in tough circumstances.

Controlling= Review and Renew.

Implementing and monitoring systems necessary to regulate activities and allow the evaluation of
the achievement of plans.
*Way of comparing actual performance with planned performance.
*Performance indicators based on non-financial &financial information.

Policies (2.4)
A policy is a general statement that serve3s as a guide for an organisation in it's decision making
and action. Provides a broad framework for an organisations activities.
Procedures are the practical ways of implementing a policy and putting them into action.
 Steps of how to implement a policy
1.NEED for a policy=link the need with objectives. Legislation, commercial issues.
2. IDENTIFY policy issues.
RESEARCH- generally/broadly specific.
CONSULT-shareholders
CONDUCT-meeting.
3.DRAFT policy=internal review, seek response, review and make changes according to feedback.
4. FINAL POLICY=sign-off by top/middle management. Review policy date and distribute
policy.

Management style (2.5)

Autocratic Style
-TELLS
*One way communication (top-down)
*Manager makes decisions alone.
*Authority is centralised.
*ADV=fast decisions, roles clearly defined,
helps in emergency situation.
*DIS-ADV=employee decreased morale, no
opportunity for staff input.
Persuasive style
-SELLS
*One way communication (top-down)
*Manager makes decision alone, but explains
WHY?
*Authority is centralised
*ADV=Fast decisions.
*DIS-ADV=Employees have no owner ship of
decisions that get made.

Consultative Style Participative style

-CONSULT
*two way communication.
*Manager makes decisions alone, after
consulting with staff.
*ADV= Staff input can improve quality of
decisions, increase in staff motivation.
DIS-ADV=Time consuming, workers may be
upset if they are consulted and their solution is DIS-ADV=decisions can be delayed, can cause
not implemented.
-JOINS
*Employees involved (two way communication)
*make decisions together.
*Authority is decentralised
* ADV=motivation and commitment, boost
moral, high levels of ownership as workers
make own decision.
conflict between workers, workers may resent
being a part of the process.

Laissez Fairre Situational Style

-WITHOUT DIRECTION -CONTINGENCY
*Employees works independently *Style depends on situation.
*managers check on employee progress. *Uses all management styles.
*Good for creative industry & research *Depends on manager and staff and what needs
development areas. Eg computers to be completed.
ADV=workers have a great deal of control
which can lead to improved morale.
DIS-ADV=Lack of control could lead to
lazyness, some workers may not be able to work
without direction.
 Management Skills (2.6)
Communication= A two way process of effectively sending and receiving information and results
with feedback.
Types of communication=NON- WRITTEN=Phone, one on one, video conferencing, body
language.
WRITTEN=letters, emails, pamphlets, newspaper, magazine, reports, memos and email and txt.

Negotiation= The process of discussion and bargaining between two or more people with the aim
of resolving conflicts of interest.*An 'Art' managers are often taught.
1. Setting a positive and social atmosphere. 2.Assembling differences. 3.Dealing with conflict of
stress. 4. Following up on discussion.

Time management=Time management is how the resource of time is used: The ability to priortise
tasks so that work is completed efficiently and effectively. Eg Diary, setting goals, organisations,
reminders.

Delegation=Passing autority of a task onto subordinate (staff member working for you)
ADV=Staff can complete work when managers are not able to.
Contributes to employees skills and job satisfaction.

Decision making= The ability to select the best course of action from a range of options.
DODDSE is strategy used to initiate a decision.
DEFINE the objectives
OUTLINE the facts
DECIDE on the causes, if a problem exists
DEVELOP several solutions
SELECT the preferred alternative and implement it.
EVALUATE the effectiveness of the solutions.

Stress Management= Is the ability to cope with different pressures. The positive side of stress, is
that it's an activator that challenges us to achieve our goals.
Affecting managers= Long hours, customer irritation, deadlines, strikes.
Dealing with it= Exercise=improve working hours, clarifying working hours.

Emotional Intelligence (EQ)= Is a skill and can be taught and improved. It relates to how people
handle their relationship and emotions.
Self resistent= Involves understanding and controlling your emotions. Eg you don't let fly when you
feel like it.
Compassion=Involves thinking about other positions and using your understanding of how you can
be helpful to others.