Accounting technicians scheme west africa
CHAPTER SIX BUSINESS PROCESS RE-ENGINEERING
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| CHAPTER SIX BUSINESS PROCESS RE-ENGINEERING This chapter covers topics such as defining business process re-engineering (BPR), objectives of BPR, how to implement BPR, objectives of BPR, and benefits of BPR. CHAPTER SEVEN ORGANISATIONAL EFFECTIVENESS The chapter covers topics such as defining organisational effectiveness, approaches of organisational effectiveness, existing models of organisational effectiveness, CHAPTER EIGHT OFFICE PRACTICE AND PROCEDURE, HEALTH AND SAFETY The chapter covers topics such as meaning of an office, functions of an office, types of an office, office planning and layout, office machines and furniture, organisation and methods, forms of designing and control, information technology application in management, health and safety regulation, importance, health and safety regulations, sources of danger to health within the workplace, and safety and protection methods in an office setting. xi TABLE OF CONTENTS TITLE PAGE. i COPYRIGHT AND DISCLAIMERS. ii PREFACE. iii FOREWORD. iv STRUCTURE OF THE STUDY PACK. v ACKNOWLEDGEMENTS. vi CONTENTS SUMMARY. vii TABLE OF CONTENTS LIST OF TABLES. LIST OF FIGURES .................................................................................................... CHAPTER ONE NATURE OF BUSINESS SECTION A INTRODUCTION TO BUSINESS 1 A Introduction 2 A Definitions of Business 3 A Why the Need of Business 3 A Resources of Business 3 A Objectives of Business 4 A Primary Objectives of Business 5 A The Secondary Objectives of a Business 5 A Classification of Business 5 A Size Based Classification 6 A Use of Output Based Classification 6 A Input Based Classification 7 A Types of Ownership 7 A Industrial Classification 8 A Reasons for Business Failure 8 A Planning against Business Failure 10 A Importance of Profit in Business 11 A Requirements for Success in Modern Business 11 A Qualities of a Good Businessman 12 A Legal Forms of Business Ownership 13 A Sole Proprietorship 13 A.11.1a Features of Sole Proprietorship 14 Ab Advantages of Sole Proprietorship 14 Ac Disadvantages of Sole Proprietorship 14 A Partnership 15 A.11.2a Features of Partnership 15 Ab Types of Partners 15 Ac Advantages of Partnership 16 xii Ad Disadvantages of Partnership 16 A.11.2e Dissolution of Partnership 16 A Corporation or Limited Liability Company 17 A.11.3a Advantages of a Corporation 17 Ab Disadvantages of a Corporation 17 Ac Formation of a Limited Liability Company 18 A Cooperative 19 A.11.4a Characteristics of Cooperative Organisation 19 Ab Types of Cooperatives 19 Ab Advantages of Cooperatives 20 Ac Disadvantages of Cooperatives 20 A Stakeholders in Business and their Expectations 21 A Definition of Stakeholders 21 A Internal Stakeholders 21 A External Stakeholders 21 A Expectation of Stakeholders 21 A Effects of Stakeholders Expectations 21 Summary 22 Review Questions 22 SECTION B BUSINESS ENVIRONMENT B Definition of Business Environment 25 B Classification of the Business Environment 26 B Analysis of the Business Environment 27 B The Task Environment 27 B General/Mega Environment 29 B Internal Environment 33 B Environmental Analysis 35 B Environmental Forecasting 36 B Techniques for Interacting with the Environment 36 B Globalisation 37 B Factors influencing Globalisation 37 B Implications of Globalisation for Management and Business Enterprises 38 Summary 38 Review Questions 38 SECTION C. CORPORATE SOCIAL RESPONSIBILITY, BUSINESS ETHICS AND CORPORATE GOVERNANCE C Nature of Social Responsibility 41 C Dynamics of Social Responsibility 42 xiii C Arguments for Social Responsibility 43 C Arguments against Social Responsibility 44 C Business Ethics 44 C Ethical issues in Business 45 C Why some managers behave unethically 46 C Causes of Unethical Behaviours 46 C Guidelines for Ethical Competence 48 C Ethical Practices Peculiar to Accounting Profession 48 C Possible Sanctions for Breach of Ethical Compliance in Accounting Profession 49 C Corporate Governance 49 C Benefits of Corporate Governance 50 C Prerequisites of Effective Corporate Governance in Nigeria 50 C Weaknesses/Problems of Corporate Governance in Nigeria 50 C Codes of Best Practices on Corporate Governance in Nigeria 51 C Compliance Requirements of Corporate Governance 51 Summary 52 Review Questions 52 CHAPTER TWO MANAGEMENT THEORIES AND THOUGHTS 2.0 Introduction 56 2.1 Definitions of Management 56 2.2 Nature, Objectives and Purpose of management 57 2.2.1 Nature of Management 57 2.2.2 Objectives of Management 59 2.2.3 Purpose of Management 59 2.3 Management as a technique, process, discipline and profession 59 2.3.1 Management as a technique 59 2.3.2 Management as a process 60 2.3.3 Management as a discipline and profession 60 2.4 Management Functions 61 2.4.1 Planning 61 2.4.2 Organizing 61 2.4.3 Staffing 62 2.4.4 Leading 62 2.4.5 Controlling 62 2.4.5 Coordination 62 2.5 Levels of Management 62 2.5.1 Top level Management 63 2.5.2 Middle level Management 63 2.5.3 First-line or Lower Level Management 64 xiv 2.6 Management skills 64 2.6 Managerial roles 65 2.7.1 Interpersonal roles 65 2.7.2 Information roles 66 2.7.3 Decisional roles 66 2.8 Management as an Art or a Science 66 2.9 Universality and Transferability of management 68 2.9.1 Universality of Management 68 2.9.2 Transferability of Management 68 2.10 Measures of Managerial Performance Productivity, Effectiveness and Efficiency 69 2.10.1 Productivity 69 2.10.2 Effectiveness 70 2.10.3 Efficiency 70 2.11 Current Managerial Trends 70 2.11.1 Globalisation 70 2.11.2 Quality 71 2.11.3 Environmentalism 72 2.11.4 Growing diversity of Workplace 73 2.11.5 Ethical Reawakening 74 2.12 Evolution of Schools of Management Thoughts 75 2.13 Pre-classical Management thoughts 76 2.13.1 Robert Owen (1771 -1858) 76 2.13.2 Charles Babbage (1792 -1891) 76 2.13.3 Henry Vamun Poor 76 2.13.4 Captain Henry Metcalfe (1847 -1917) 77 2.14 Scientific Management 77 2.14.1 Fredrick Winslow Taylor (1856-1915) 77 2.14.2 Frank Gilbreth and Lillian Gilbreth 78 2.14.3 Henry L. Gantt (1861-1919) 78 2.14.4 Harrington Emerson (1853-1931): Principles of Efficiency 79 2.14.5 Contributions of Scientific Management Theory 80 2.14.6 Limitations of Scientific Management 80 2.15 Administrative Management Theory 81 2.15.1 Henri Fayol (1841-1920) 81 2.15.2 Chester Barnard (1886-1961) 83 2.15.3 Colonel Lyndall Urwick 83 2.15.4 Luther Gulick 84 2.15.5 James D. Mooney and Alan C. Reilly 84 2.15.6 Implications of Administrative School to Modern Management 84 2.15.7 Limitations of Administrative Management 84 xv 2.16 Theory of Bureaucracy (Max Weber 1864-1920) 85 2.16.1 Features of Bureaucracy 86 2.16.2 Contributions of Bureaucracy to Management 86 2.16.3 Limitations of Bureaucracy 86 2.17 Human Relations Theory 87 2.17.1 The Hawthorne Experiments (Elton Mayo, 1880 – 1949) 87 2.17.2 Contributions of Human Relations Theory 88 2.16.3 Limitations of Human Relations Theory 89 2.18 Quantitative Management School 89 2.18.1 Branches in the Quantitative Management Viewpoint 90 2.19 Contemporary Approaches to Management Thoughts 91 2.19.1 Decision Theory Approach to Management 91 2.19.2 Systems Theory 91 2.19.3 Components of a system 92 2.19.4 Systems as cycles of events 93 2.19.5 Contributions of the Systems Theory to Management 93 2.19.6 Limitations of the Systems Theory 93 2.20 Contingency theory 94 2.20.1 Contingency or Situational Approach to Management 94 2.20.2 Features of contingency approach 94 2.20.3 Contributions of Contingency Theory to Management 95 2.21 Emerging Trends in Management 95 Summary 97 Review Questions 98 CHAPTER THREE MANAGEMENT PROCESS SECTION A PLANNING A Meaning of Planning 101 A Definition of Planning 102 A Nature and characteristics of planning 102 A Basic Principles of Planning 104 A Importance of planning 107 A Dimensions/Types of Plans 108 A The Planning Process (Steps in planning) 113 A Levels of Planning 115 A Strategic Planning (Top management) 116 A Tactical Planning (Middle management) 116 A Operational Planning (Lower level management) 117 A Benefits of planning 117 A Tools/Factors Aiding Effective Planning 119 xvi A Barriers to Effective Planning 120 Summary 120 Review Questions 120 SECTION B DECISION MAKING 122 B Decision Making 122 B Nature and Characteristics of Decisions 123 B Types of Decisions 123 B Rational Decision-Making Process 124 B Decision Making Situations 126 B Individual Decision-Making 128 B Advantages of individual decision-making 128 B Disadvantages of individual decision-making 128 B Group Decision-Making 129 B Advantages of Group Decision-Making 129 B Disadvantages of Group Decision-Making 130 B Decision making Techniques 130 Summary 134 Review Questions 134 SECTION C ORGANISING C Definition of Organising 137 C Meaning and Nature of Organisation 137 C Purpose of Organising 138 C Principles of Organisation 138 C Characteristics of Organisations 139 C Classifications of Organisation 139 C Factors Influencing Management Choice of Organisation Structure 144 C Consequences of Badly Designed Organisation Structure 144 C Types or Forms of Organisational Structure 145 C Line and Staff Relationship 152 C Line Authority 152 C Staff Authority 153 C Staff Organisation Structure 153 C Line and Staff Organisation 154 C Line and Staff Organisation Structure 154 C Line and Staff Conflicts 155 C Delegation of Authority 155 C The process of delegation involves 156 C Advantages of delegation 156 xvii C Barriers/Obstacles to Effective Delegation of Authority 156 C Reasons for Managers Reluctance to Delegate 157 C Subordinates Reluctance to Accept Delegated Authority 157 C Span of Control 157 C Centralisation of Authority 158 C Advantages of Centralisation 158 C Disadvantages of Centralisation 158 C Decentralisation 159 C Advantages of Decentralisation 159 C Disadvantages of Decentralisation 159 Review Questions 159 SECTION D COORDINATION D Definition of Coordination 162 D Types for Coordination 162 D Need and Objectives of Coordination 163 D Techniques of Coordination 163 SECTION E CONTROLLING E Definition of Control 165 E Meaning and Purpose of Control 165 E Importance/Usefulness of Control 166 E Link between Planning and Control 166 E Types of Control 167 E The Control Process 170 E Characteristics of Effective Control Systems 171 Summary 173 Review Questions 174 SECTION F STRATEGIC MANAGEMENT F Definition of Strategic Management 177 F Meaning of Strategy 178 F Purpose/importance of Strategic Management 178 F Strategic Management Process 179 F SWOT Analysis 180 F Strength 180 F Weakness 181 F Opportunity 181 F Threat 181 F Levels/Types of Organisation's Strategies 182 xviii F Corporate Strategy 182 F Business Strategy 182 F Functional Strategy 182 F Operating Strategy 182 F Distinction between Corporate and Divisional Strategy 183 Fa Corporate strategy 183 F.6.5b Divisional Strategy 183 Summary 184 Review Questions 184 CHAPTER FOUR ORGANIC BUSINESS FUNCTIONS SECTION A. HUMAN RESOURCES MANAGEMENT A Human Resource in Organisations 189 A Meaning of Human Resource Management 190 A Components of Human Resource Management 190 A Functions of Human Resource Management/Department 190 A Human Resource Planning 191 A Steps in the Human Resource Planning Process 192 A Importance of Human Resource Planning 193 A.6 Recruitment 194 A Sources of Recruitment 194 A Internal Recruitment 194 A External Recruitment 195 A Selection 196 A Analysis of Application Forms 197 A Selection Tests 197 A Selection Interview 198 A Placement 198 A Induction 198 A Objectives of Induction 198 A Importance of Induction 198 A Induction Procedures 199 A Job Analysis 199 A Definition of Job Analysis 199 A Methods of Job Analysis 200 A Uses of Job Analysis 200 A Job Description 201 A Job Specification 201 A Training and Development 202 A Training and Development Process 202 xix A Training and Development Methods 203 A Benefits of Training and Development 204 A Performance Appraisal 204 A Methods of conducting Performance Appraisal 205 A Criteria for an effective performance appraisal system 205 A Wages and Salaries Administration (Employee Compensation) 206 A Objectives of Wages and Salary Administration 207 A Principles of Wages and Salary Administration 207 A Establishment of Methods of Compensating Employees 208 A Designing and Implementing Incentive Schemes 208 A Employee Discipline 209 A Features of Effective Discipline 209 A Objectives of Employee Disciplinary actions 210 A Causes of Indiscipline in an organisation 211 A Disciplinary Measures in an organisation 211 A Industrial and Labour Relations 212 A Collective Bargaining 212 A Contents of Collective Agreements 212 A Importance of Collective Bargaining 213 A Grievance and Grievance Procedure 213 Summary 214 Review Questions 215 SECTION B. PRODUCTION MANAGEMENT B Meaning of Production 219 B Production Management 220 B Objectives of Production Management 221 B Functions of Production Management 221 B Plant (Facilities) Location 222 B Factors Influencing Plant Location 223 B Plant layout and design 223 B Objectives of Plant Layout 224 B Principles of Plant Layout 224 B Factors Influencing Plant Layout and Design 224 B Types of Plant Layout 225 B Production Systems 227 B Components of a production system 227 B Features of Production systems 228 B Factors influencing Type of Production System Used 229 Summary 230 xx Review Questions 230 SECTION C MARKETING MANAGEMENT C Definition of Marketing 236 C Analysis of the Marketing Process 236 C Marketing Functions 237 C Evolution of Marketing Management 238 C Marketing Segmentation 239 C Methods of Segmentation 239 C Benefits of Market Segmentation 240 C Marketing Mix 240 C Product 241 C Consumer products 241 C Industrial products 243 C What is anew product 244 C New Product Development 244 C Stages in New Product Development 244 C Pricing 245 C Basic Rules of Pricing 245 C Pricing Objectives 245 C Pricing methods 246 C Factors which influence pricing 247 C Promotion 247 C Advertising 248 C Public Relations 248 C Sales Promotion 249 C Personal Selling 250 C Place (Distribution) 251 C Functions of intermediaries 251 C Channels of Distribution 252 C Factors influencing Choice of Distribution Channel 252 C Retailing 253 C Types of Retailers 253 C Wholesaling 254 C Distribution Polices 255 C Extended 7Ps of marketing 256 C People 256 C Process 256 C Physical Evidence 257 Summary 257 xxi Review Questions 258 SECTION D FINANCE AND ACCOUNTING FUNCTION D Definition of Finance 263 D Nature of the Finance Function 264 D Financial markets/System 264 D Nature of Financial system 265 D The Money market 265 D Functions of the Money Market 265 D Common Money Market Instruments 266 D Role of participants in the money market. 266 D Capital Market 272 D Segments of the Capital Market 272 D Functions of Capital Market 273 D The Accounting function 273 D Primary Functions of an Accounting Function 273 D Strategic Functions of an Accountant 274 D Structure of Accounting Department 274 D Positions of an Accountant within the Organisation 275 Summary 275 Review Questions 275 CHAPTER FIVE MANAGEMENT OF WORKPLACE RELATIONSHIP SECTION A MOTIVATION A Definition of Motivation 281 A Types of Motivation 282 A Factors Affecting Motivation 282 A Motivation Theories 283 A Content Theories 283 A Process Theories 289 A Reinforcement Theory 291 A Techniques used to motivate employees in practice 292 Summary 292 Review Questions 293 SECTION B LEADERSHIP B Definition of Leadership 294 B Functions of a Leader 295 B Leadership styles 296 B Qualities of an effective leader 297 xxii Summary 298 SECTION C GROUP C Definition of Group 299 C Types of Groups 299 C Formal Group 299 C Informal Groups 300 C Definition of Team 300 C Types of Teams 301 C Process of Group and Team Development 301 Summary 304 SECTION D CONFLICT MANAGEMENT D Definition of Conflicts in Organisation 305 D Types of Conflict 305 D Development of Conflict 306 D Sources of Conflicts in an Organisation 307 D Outcomes of Conflicts 307 D Management of Organisational Conflict 308 SECTION E WORKPLACE ATTITUDE E Workplace Attitude 309 E Nature of Attitudes 309 E Components of Attitude 309 E Factors that influences on our attitudes 310 E Work-related Attitudes 310 E Job satisfaction 310 E Organisational commitment 310 Ea Features of organisational commitment 311 E.2.2b Forms of Organisational Commitment 311 E Attitudes that are Important in Workplaces 311 SECTION F COMMUNICATION F Define Communication 313 F Communication Process in an Organisation 314 F Types of Communication 315 F Forms of Communication in an Organisation 315 F Functions of Communication 316 F Principles of Communication 317 F Barriers to Effective Communication 318 xxiii Summary SECTION G EMOTIONAL INTELLIGENCE G Emotional Intelligence 320 G Features of Elements of Emotional Intelligence 320 G Importance of Emotional Intelligence at Workplace 320 SECTION H MANAGEMENT OF CHANGE H Management of Change 321 H Forces of Organisational Change 321 H Reasons for Resistance to Change 322 H Managing Resistance to Change 322 CHAPTER SIX BUSINESS PROCESS RE-ENGINEERING 6.1 Business process re-engineering (BPR) 324 6.2 Objectives of Business Process re-engineering 325 6.3 Implementation of Business Process Re-engineering 326 6.4 Benefits of implementing BPR 326 6.5 Limitations of implementing BPR 327 Summary 327 Review Questions 328 CHAPTER SEVEN ORGANISATIONAL EFFECTIVENESS 7.1 Definition of Organisational Effectiveness 331 7.2 Approaches to Organisational Effectiveness 332 7.2.1 System Resource Approach 333 7.2.2 Internal Process Approach 333 7.2.3 Goal Approach 333 7.2.4 Strategic Constituencies Approach 334 7.2.5 Competing Values Approach 334 7.3 Existing Models of Organizational Effectiveness 334 7.3.1 The Command Team Effectiveness (CTEF) Method 334 7.3.2 Five Factors Model of Intercultural Leadership Behavior 335 7.3.3 The Star Model 336 7.3.4 7-S-Model 337 Summary 338 Review Questions 339 CHAPTER EIGHT OFFICE PRACTICE AND PROCEDURE, HEALTH AND SAFETY 8.1 Definition of an office 343 xxiv 8.2 Functions of an office 343 8.3 Types of Office 343 8.4 Planning an Office Layout 344 8.5 Office Machines and Furniture 345 8.6 Types of Office Machines and Furniture 346 8.7 Organisation and Methods OM Steps/Procedures in OM study 348 8.7.2 Importance of OM Forms 348 8.8.1 Advantages of Forms 349 8.8.2 Design of Forms 349 8.8.3 Control of Forms 349 8.9 Information Technology Application in Management 350 8.10 Health and Safety at Work 351 8.10.1 Importance of Health and Safety at Work 351 8.10.2 Health and Safety Regulations and Legislations 351 8.10.3 Sources of Danger to Health and Safety at the Workplace 354 8.10.4 Prevention and Protective Measures for Safety in an Office 354 Summary 355 Review Questions 356 |