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Management Practice 3
Management Practice - Level 3 1Future Managers
What we cover• Corporate culture
– Maintain the image of the organisation• The impact of legislation on business operations
– Identify the legislation that regulates employment issues– Demonstrate an understanding of the main aspects of
the Labour Relations Act– Explain the requirements of the LRA in respect of
interviews– Demonstrate and understanding of the aspects of the
Basic Conditions of Employment Act
Management Practice - Level 3 2Future Managers
What we cover• Strategic planning
– Define and discuss the concept of strategic planning in managing business performance
• Maintain an existing information system in an office environment– Store information using an existing storage system– Retrieve information from an existing storage system– Store valuable documentation and reference materials
securely– Establish a record keeping system to store records for
new projects– Maintain and update a record keeping system
Management Practice - Level 3 3Future Managers
Module 1: Corporate culture
Management Practice - Level 3 4Future Managers
Module 1: Corporate culture• After completing this module, you will be
able to:– Maintain the image of the organization– Demonstrate an understanding of and apply
company ethics– Co-operate with other service suppliers– Interface and interact with clients– Demonstrate an understanding of an
organisational structure
Management Practice - Level 3 5Future Managers
1. Maintain the image of the organisation
• After completing this outcome, you will be able to:– Identify and explain the organisational policies
and related procedures that exist within an organisation
– Compare the dress code and operating practices between organisations
– Discuss how organisational policies and procedures are applied according to set company standards, within a specific context
Management Practice - Level 3 6Future Managers
Corporate culture• What is corporate culture?
– The beliefs and values shared by people in an organisation
– Values, which are the community’s assumptions about what ideals are worth pursuing, such a striving for success, or avoiding debt
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Elements of corporate culture
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Changing the organisational culture
• Getting people to subscribe to a new pattern of beliefs and values and changing some of the elements of culture, such as the name or logo of the organisation or its corporate colours
• Inducting and socialising people into the organisation and removing people who deviate from the culture
• Strengthen the prevailing culture through appropriate communication and training
• In severe cases, organisations can make use of mergers or acquisitions and divestments to change an organisational culture.
Management Practice - Level 3 9Future Managers
Business culture• What is business culture?
– Business culture can be defined as a system of values, customs and habits within the business which sets particular behavioural norms
– Business culture should be built into the business mission
– Business culture should give management direction
Management Practice - Level 3 10Future Managers
Business culture• The degree of responsibility, independence and
opportunity that each individual enjoys in the business• The degree to which rules, regulations and direct
supervision influence employees’ behaviour• The amount of support management gives its employees• The willingness of the individual worker to identify with
the business• The degree of conflict present and the willingness to
solve it• The degree to which remuneration is related to results• The degree to which individuals are encouraged to act
innovatively and to take risks
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Influence of culture on the basic management functions
Management Practice - Level 3 12Future Managers
1.1 Identify and explain the organisational polices and related procedures that exist in an
organisation• What is the difference between a policy and
a procedure?– A policy, usually in a written form, is a general
guideline for management when making decisions and sets the limits within which such decisions must be made, to ensure that individual managers will react uniformly, when similar situations occur repeatedly
– A series of related, consecutive steps that must be followed in order to perform a task
Management Practice - Level 3 13Future Managers
Activity 1• Visit any nearby organization and ask
management a copy of their dress code policy.
• Bring the policy to class and then compare and discuss differences in the respective dress code policies (if any).
Management Practice - Level 3 14Future Managers
Activity 2• Bring any two dress code policies to class
and then compare and discuss:– The differences of the respective policies– Aspects of the policies that you want to change– Discuss and decide who will have the
responsibility of implementing the policy in the organisation and / or department
Management Practice - Level 3 15Future Managers
1.3 Discuss how organisational polices and procedures are applied according to set
company standards• Different companies have different policies and
procedures• Employees are expected to cooperate according
to the policies and procedures, even if they don’t agree or are used to a different policy
• Operating practices include:– The way departments communicate with each other– The way people are rewarded– The way managers measure performance
Management Practice - Level 3 16Future Managers
1.4 Demonstrate and understanding of and apply company ethics
• What is ethics?– The code of moral principles and values that
directs the behaviour of an individual or group in terms of what is right and wrong
Management Practice - Level 3 17Future Managers
Activity 3• Again, visit any organisation and ask
management about:– The organisation’s ethics – their moral
principles and values– A copy of their code of conduct
Management Practice - Level 3 18Future Managers
The code of conduct• What is a code of conduct?
– Acts as a guideline to employees as to what is expected from them from an ethical point of view
• What is the purpose of a code of conduct– As a guide on how to behave– As a disciplinary tool
Management Practice - Level 3 19Future Managers
Ethics
Management Practice - Level 3 20Future Managers
Business ethics• What are business ethics?
– Your own ethics applied in your business, namely what you believe in, as well as your morale code
Management Practice - Level 3 21Future Managers
Activity 4• In small groups, comment on the following situations
in terms of ethical or unethical behaviour:– In your capacity as export manager of Global Exports,
you’ve decided to a bribe to an official in a third world country to speed up the process of acquiring a permit - it’s an accepted procedure in that specific country, and if you don’t do it you will lose business
– Salary increase not possible, because it’s not been budget for, but management will say nothing and allow you to load your expenses account – paid from the budget
– The organisation desperately needs a job – you complete the tender and will pay each one of the tender committee a certain amount of money to ‘fix’ the price to secure the job for your organisation
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Level of ethical decision-making
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Different approaches to ethical decision-making
• Utilitarian approach– The greatest good to the greatest number of
people• Moral rights approach
– The rights of an individual can’t be taken away by another person’s decision
• Social justice approach– Ethical decisions must be based on decisions of
equity, fairness and impartiality
Management Practice - Level 3 24Future Managers
Fundamental rights of South Africans
• Do you know what the fundamental rights of South African’s are?– Equality– Human dignity– Life– Freedom and security of the person– Freedom from slavery and forced labour– Privacy– Freedom of religion, belief and opinion– Freedom of association– Labour relations– Environment
Management Practice - Level 3 25Future Managers
Ethical tests• Is it the truth?• Is it fair to all concerned?• Will it build goodwill and better friendship?• Will it be beneficial to all concerned?
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Ethical guidelines• Do unto other as you would have them do
unto you• Intuition• Means – ends
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Steps in the ethical decision making process
• Identify the problem• Determine whose interests are involved• Determine the relevant facts• Weigh up the various interests• Determine the expectations of those involved• Determine the range of choices• Determine the consequences of these choices
for all involved• Make your choice
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Managing ethics in the organisation
• Top management should set an example of ethical behaviour both through talk and actions
• The company should have a code of ethics. Why?
• Ethics committee• Ethical ombudsman• Ethical training• Whistle-blowing
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Basic questions about ethical decision making
• Are the facts correct?• Is it legal?• Is it fair towards and equitable for all parties concerned?• To whom does you loyalty as a person belong?• Are the rights of the employees recognised?• Are employees who divulge important facts regarded as whistle-
blowers, or are their contributions regarded as valuable? • Does discrimination exist in the business against certain groups?
• Is loyalty to the business and its objectives developed to such an
extent that the leakage of trade secrets is minimized?• When appointments are made, is it ascertained that the frame
of reference of the prospective employee(s) fits in with the business’s stated points of view?
Management Practice - Level 3 30Future Managers
Activity 5: Group discussion• Discuss or give your view/opinion on the
following concerning whistle blowing:1. What is a whistleblower?2. Is there protection for a whistleblower in an
organisation?3. Would you act as a whistleblower if you knew
something was done against the code of ethics in your organisation?
4. If your answer is yes, what process would you follow in doing so?
Management Practice - Level 3 31Future Managers
Apply the principles of the code of conduct and ethics within a given
context• Being honest with others in the organisation• Being honest with the public in advertising and
promotions• Producing safe products• Obeying laws• Telling the truth about one’s own education
and work experience• Not doing harm to anyone in the organisation• Not harming the environment
Management Practice - Level 3 32Future Managers
1.5 Co-operate with other service suppliers
• What is a supplier?– People or organisations that provide a product
or service to an individual or another organisation
– In general, companies try to establish a long term relationship with suppliers
Management Practice - Level 3 33Future Managers
The selection of suppliers• Compile a list of suppliers who may be able
to satisfy the need• Reduce the list to a short list• Suppliers on the short list are then asked to
quote• The final supplier is chosen based on:
quality, price, delivery, technical support, progressiveness and reliability
Management Practice - Level 3 34Future Managers
Continuous evaluation of suppliers
• Why do we continuously evaluate suppliers?– That they meet requirements and to eliminate
unsatisfactory suppliers– It leads to an improvement in supplier
performance– It serves as a guideline for the development of
suppliers
Management Practice - Level 3 35Future Managers
Classification of services• Housing• Household operations• Recreation and entertainment• Personal care• Medical and other health care• Private education• Business and other professional services• Insurance, banking and other financial services• Transportation• Communication
Management Practice - Level 3 36Future Managers
Classification of services• By service process
– People processing– Possession processing– Information processing
• By object– Tangible / intangible assets– Mainly physical / mainly intellectual
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Components of service quality
Management Practice - Level 3 38Future Managers
1.6 Interface and interact with clients
• How does one greet a client?– When a potential client walks into the business
it’s important for you to immediately acknowledge his/her entrance
– Approach, greet and welcome the client– Introduce yourself to the client– Listen carefully to what the name/surname of
client is and make sure about the correct pronunciation
Management Practice - Level 3 39Future Managers
1.6 Interface and interact with clients
• How does one greet a client?– If you are not the salesperson inform the client that you will
immediately call one of your sales staff to attend– This action (calling a staff member) must be done promptly
without any delay or an unnecessary long wait– Attend to the need or request of the client with a positive
attitude– Be friendly at all times – it will help the client to relax – Your friendliness has to be supported by your body
language – Be energetic and willing to pay attention to the need of the
client, even if our business cannot help the client – If you cannot help or satisfied the client, advise the client
where to go
Management Practice - Level 3 40Future Managers
Activity 6• Divide into groups (maximum 3-4 members)• Visit any group in your immediate environment
and observe the greeting of clients• Put your observation into a report• In your class situation, give feedback on your
observation (positive or negative)• After all the groups have given feedback, draw
up a new policy document on “How to greet and attend to your customer”
Management Practice - Level 3 41Future Managers
The care skills
Management Practice - Level 3 42Future Managers
Describe the organisational protocol with regards to the treatment of clients
• The client service protocol– Describes who the client’s internal and external
customers are– How the organisation intends to serve its clients– What the customers can expect from the
organisation when they do a telephonic enquiry, send a letter or an email.
– What clients can expect if they visit the organisation
– How clients can give the organisation feedback– What service the clients will get after a sale and
how the organisation will support customers
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Differentiate between internal and external clients
• Who are internal clients?– The people within the organisation– Frontline staff– Support staff– Production / manufacturing staff
• Who are external clients?– Customers of the organisation– Potential customers
Management Practice - Level 3 44Future Managers
1.7 Demonstrate an understanding of an organisational structure
• What is organising?– Organising deals with the grouping and
allocations of activities to main function divisions and sub-divisions
• What are policies?• What are procedures?
Management Practice - Level 3 45Future Managers
Activity 71. Make an appointment with the human resource
department of your college and ask them for a list of all the different policies which relate to the employer / employee
2. Visit the head of your department and ask him/her which policies are used in the department and are unique to it
3. Again, visit the nearby organisation and ask their human resource manager or any other manager for a list of policies used in their organisation
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Activity 8• Make a list of procedures in your college
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Organisational structure: terminology
• What is responsibility?– It is the obligation of an employee to perform
assigned tasks• What are role perceptions?
– Role perceptions are the employees beliefs about what is required to do the job properly
Management Practice - Level 3 48Future Managers
Explain the roles within the organisational structure or organogram
• Levels of management• Sections or departments• Tasks• Lines of authority
Management Practice - Level 3 Future Managers 49
Organisational structure
Management Practice - Level 3 50Future Managers
Case study: Good riddance to Travelgate MPs
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• Read the article on page 35 and answer the following questions:1. Why was the incident so prominent on the SABC
News and the front pages of the newspaper?2. Was this action done according to the Parliament’s
Code of Ethics or against it. Explain your decision3. Who was involved in the Travelgate scandal?4. Develop a policy or procedure for MPs when booking
tickets5. Is it necessary for the ANC to discipline their
members? If so, what action should they have taken against their members?
Management Practice - Level 3 Future Managers 52