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48 Cards in this Set
- Front
- Back
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1. GOVERNANCE STRUCTURES
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This is just a chapter.
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What are the 6 elements of the Governance Chain?
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(F = family business)
(F) Beneficiaries Investment Funds (F) Board Executive Directors Senior Executives (F) Managers |
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What is the main Principal-Agent model problem?
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Misalignment of incentives
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+'s and -'s of the Shareholder Model
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+ Higher rate of return for investors
+ Management independence - Difficult to monitor management - Risk of short-termism |
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+'s and -'s of the Stakeholder Model
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+ Closer monitoring of management
+ Longer-term decision horizon - Reduced management independence - Slower decision-making |
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2. ORGANISATIONAL STRUCTURES
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This is just a chapter.
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How does a Functional Structure look like?
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[[[[[[[[[[[[[[[[[[[[[[[[[[[CEO]]]]]]]]]]]]]]]]]]]]]]]]]]]]]
[[[Production]]] [[[Sales]]] [[[Finance]]] [[[HR]]] |
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+'s and -'s of the Functional Structure
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+ Senior managers directly involved
+ Clear definition of roles and tasks - Senior managers overburdened with operational issues - Poor at adapting to change |
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How does a Multidivisional Structure look like?
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[[[[[[[[[[[[[[[[[[[[[[[Head Office]]]]]]]]]]]]]]]]]]]]]]]]]
------------------------------[[[Central Services]]] [[[Division A]]] [[[Division B]]] [[[Division C]]] [[[Functions]]] [[[Functions]]] [[[Functions]]] |
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+'s and -'s of the Multidivisional Structure
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+ Self-standing business units
+ Flexibility in response to the business environment - Potential for divisions to become independent businesses - Lack of knowledge sharing between divisions |
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Characteristics of the Matrix Structure
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- Combination of different structural dimensions
- Middle managers typically report to 2-3 senior managers |
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The 3 Transnational (Multinational) Structures
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- International Divisions
- Local Subsidiaries - Global Product Divisions |
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Characteristics of the Project-based Structure
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- Highly flexible
- Clear tasks and objectives - High accountability |
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What is the choice of organisational structure based on?
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- Control
- Change - Knowledge - Internationalisation |
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3. CORPORATE SOCIAL RESPONSIBILITY
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This is just a chapter.
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The 4 types of CSR leadership
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- Laissez-faire
- Enlightened self interest - Forum for stakeholder interaction - Shaper of society |
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Laissez-faire CSR characteristics
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Rationale: legal compliance
Leadership: peripheral Management: middle-management responsibility Mode: defensive to outside pressures Stakeholder relationships: unilateral |
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Enlightened self interest CSR characteristics
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Rationale: sound business sense
Leadership: supportive Management: systems to ensure good practice Mode: reactive to outside pressures Stakeholder relationships: interactive |
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Forum for stakeholder interaction CSR characteristics
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Rationale: sustainability
Leadership: champion Management: board-level issue Mode: proactive to outside pressures Stakeholder relationships: partnership |
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Shaper of society CSR characteristics
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Rationale: social and market change
Leadership: visionary Management: individual responsibility throughout the organisation Mode: defining pressures Stakeholder relationships: multi-organisational alliances |
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4. FORCEFIELD ANALYSIS (Lewin)
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This is just a chapter.
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The Forcefield Analysis model
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forces ---->--------------<- forces --------- desired
driving ---> current <-- resisting ------- future change ---> state <----- change ---------- state >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> -------------------direction of change |
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How do you lead change (Forcefield analysis model)
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- Increase driving forces
- Reduce resisting forces - Assess the relative weight of each force (%) |
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5. ORGANISATIONAL SYSTEMS
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This is just a chapter.
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Types of Organisational Systems
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Direct - Input ------- Planning systems
Direct - Output ----- Performance targeting systems Indirect - Input ----- Cultural systems Indirect - Output --- Market systems |
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Three key cultural systems
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- Recruitment (selection of appropriate staff who will ‘fit in’)
- Socialisation (training, induction and mentoring programmes) - Reward (Pay, promotion, symbolic process - public praise) |
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The two performance targeting systems
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- Balance scorecard
- Strategy maps |
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Balance Scorecard typical performance targets
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- Financial (profit, cash flow)
- Customer (service levels) - Internal Perspective (operational effectiveness) - Innovation and Learning (long-term performance, investment in training) |
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The purpose of Strategy Maps as a performance targeting system
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Strategy Maps link different performance targets to support strategic objectives (through a causal chain)
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Planning system styles
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- Strategic planning (strong strategy planning from the corporate centre)
- Financial control (units held strictly accountable for results against the strategic plan) - Strategic control (corporate centre acts as a coach to unit managers) |
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McKinsey 7-S
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Strategy ------
Structure ------- Systems ------------ Subordinate Staff ----------------- goals Style ------------- Skills ---------- |
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6. LEADERSHIP
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This is just a chapter.
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Examples of leaders
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Condoleezza Rice
Bill/Hillary Clinton Barack Obama Gordon Brown Nelson Mandela |
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Types of change
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Incremental - Realignment Adaption
Incremental - Transformation Evolution Big Bang - Realignment Reconstruction Big Bang - Transformation Revolution |
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Context of change (8)
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Capability
Capacity Diversity Power Preservation Readiness Scope Time |
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Styles of change leadership
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Education ----- ↑High ---------- | Slow
Collaboration - | --------------- | Participation -- |Support ----- | Speed Direction ------- | ---------------- | Coercion ------- |Low ----------- ↓ Fast |
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+'s and -'s of the Education change leadership style
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+ spreads support for change
- ineffective for radical change |
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+'s and -'s of the Collaboration change leadership style
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+ spreads ownership of change
- little control over decisions made |
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+'s and -'s of the Participation change leadership style
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+ easier to shape decisions
- can be perceived as manipulation |
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+'s and -'s of the Direction change leadership style
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+ clear change direction and focus
- less support, resistance to changes |
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+'s and -'s of the Coercion change leadership style
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+ allows for prompt action
- unlikely to achieve buy-in without crisis |
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What styles of change leadership are appropriate for the various contexts?
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Low Capability - Low Readiness ------ Direction
Low Capability - High Readiness ----- Education High Capability - Low Readiness ----- Participation High Capability - High Readiness ---- Collaboration |
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Why does change fail? (6)
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- Death by planning
- Loss of focus - Reinterpretation - Disconnectedness - Behavioral compliance - Broken agreements and violation of trust |
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7. MISSION AND VISION STATEMENTS
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This is just a chapter.
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What does a Mission Statement do?
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Provides employees and stakeholders with a clear statement of the overriding purpose of the organisation.
"How do we make a difference?" |
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What is the Vision Statement concerned with?
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Concerned with the desired future state of the organisation. Aspiration that will enthuse, gain commitment and stretch performance.
"What do we want to achieve?" |
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What are Corporate Values?
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Enduring core principles that guide strategy and define the way in which organisations should operate.
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Relevance issues with Mission/Vision and Corporate statements
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- Mission/Vission and Corporate statements can be bland and too wide ranging
- May show disagreement within the organisation - Sometimes organisations don't live up to their statements |
