Models and theories

• Hierarchy of objectives in a business - why functional area objectives are what they are, why objectives become more specific for functional areas, teams and individuals

  mission

  Corporate

  Functional

  Unit/team

  Individual
• Pestle - influences on a business, its consumers and its competition

  Political

  Economic

  Social

  Technological

  Legal

  Environment
• Theory X and Y - McGregor’s theory suggests there are two types of employees. One group enjoys work, the other doesn’t

  Theory X

  • people need close supervision

  • will avoid work when possible

  • will avoid responsibility

  • they only desire money

  • people must be pushed to perform

  Theory Y

  • people want independence in work

  • people seek responsibility

  • people are motivated by self fulfilment

  • people naturally want to work

  • people will drive themselves to perform
• Tannenbaum and schmidt continuum

  Shows different leadership styles

  Autocratic

  Paternalistic

  Democratic

  Laissez faire
• Decision trees

  Weighs up financial risk and rewards from decision making
• Stakeholder mapping

  Helps decide how to manage stakeholders based on power and interest

  Quadrants:

  Keep satisfied

  managed closely

  Keep informed

  Minimal effort
• Market mapping

  7 areas to consider when marketing a product:

  Product

  Price

  Place

  Promotion

  People

  Process

  Physical environment
• boston matrix

  analyses products based on market share and growth:

  stars

  Cash cow

  Question marks

  Dogs
• Porters generic strategies

  Ways to gain competitive advantage:

  Cost leadership

  Differentiation

  Focus
• Porters 5 forces

  Assesses industry competitiveness based on 5 factors:

  New entrants

  Buyer power

  Supplier power

  Rivalry

  Substitutes
• Investment appraisal

  Compares different projects using financial calculation:

  Payback

  Average rate of return

  Net resent value
• Critical path analysis

  Project management tool to plan tasks and find shortest time to complete a project:

  Critical path = longest path of tasks

  Float = spare time on non critical tasks
• Kaplan & nortons balanced scorecard

  Measures performance using 4 perspectives:

  Financial

  Customer

  Internal processes

  Learning and growth
• Elkingtons triple bottom line

  Businesses should measure performance by:

  profit

  people

  planet
• Carolls CSR pyramid

  4 layers of corporate social responsibility:

  Economic (be profitable)

  Legal (follow the law)

  Ethical (do whats right)

  Philanthropic (give back)
• Lewins force field analysis

  Change is a balance between driving and restraining forces
• Motter & schlesinger - reason for resistance to change

  Why people resist change:

  Self interest

  Misunderstanding

  Low tolerance

  Different assessment of the situation
• Kotter & schelsinger - overcoming resistance

  6 methods to overcome resistance:

  education and communication

  Participation

  Support

  Negotiation

  Manipulation

  Coercion
• Handys culture types

  4 types of organisational culture

  Power

  Role

  Task

  Person
• Greiners growth model

  Shows stages of business growth & problems at each stage:

  Creativity - leadership crisis

  Direction - autonomy crisis

  Delegation - control crisis