ETS 206 Module 1-8 Merge PDF

Module 1 FUNAAB COLMAS DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016  Introduction to Entrepreneurship Definition of Entrepreneuship- Entrepreneurship is the act of designing, launching and starting new businesses,...

Module 1 FUNAAB COLMAS DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016  Introduction to Entrepreneurship Definition of Entrepreneuship- Entrepreneurship is the act of designing, launching and starting new businesses, which often start as small businesses Definition of an Entrepreneur- An entrepreneur is a person who organizes and manages an enterprise or business with strong initiative and risk taking skills  Introduction to Entrepreneurship The earliest documented use of the word Entrepreneur in English was in the 17 century. Entrepreneur was loaned from french and means the act of being able to lead, be initiative , innovation and engage in new venture creation. Early 17th century Scholars also defined the entrepreneur as follows Joseph Schumpeter defines it as on who engages in the gale of creative destruction (during negative business cycles) to replace part or a whole of an inferior offering in industries, to create a new product and new business  Introduction to Entrepreneurship Richard Cantillon also defined an entrepreneur as a risk taker, who deliberately allocates resources to exploit opportunities in order to maximize returns Alfred Marshall viewed the entrepreneur as a multi- tasking capitalist. And states that the entrepreneur utilizes opportunities of economic disequllibrium to maximize financial returns  Historical Barriers to Entrepreneurship Historical barriers to Entrepreneurship refers to early restrictions that prevented people from entrepreneurial activities. a.) The introduction of early guild systems- Guilds system where tasked with the job of issuing permits to certain craftsmen to participate in certain trade e.g. the 1908 introduction of the Guild Certificate in Germany called the Meister Certificate. This ensured that certain specialized people participated in entrepreneurial activities. This required people to go into entrepreneurship after a period of apprenticeship, these apprentice where trained by the meister certificate holders  Historical Barriers to Entrepreneurship b.) Introduction of proof of business competence certificate in 1935 in Germany also restricted the participation in Business. In Nigeria today similar practices apply which allows apprentices to undertake trade after a period of apprenticeship and corporate businesses to be registered by the Corporate Affairs Commission.  Introduction to Entrepreneurship Management Definition- Entrepreneurship management is the process of managing risk, opportunities, material, human and financial resources in an organization to meet the defined organizational goals. Advantages of Entrepreneurship Management a.) It helps define the goals and objectives of the organization b.) Entrepreneurship management helps identify the risk of an organization with the possibility of avoiding or overcoming them c.) Entrepreneurship management helps organizations in identifying their opportunities for growth d.) Good entrepreneurship management helps to harness all material, finanancial and human resources for organizational growth  Principles of Entrepreneurship The Entrepreneur is basically a manager that manages a new business venture, which usually starts as a small business. The aim of the entrepreneur is to direct all sources of finance,human resources to opportunities for growth of the organization. The entrepreneur will be guided by principles of undertaking a.) New venture creation: The entrepreneur is tasked with the responsibility to create new venture from nothing. Therefore all resources are directed to new business models for profit making purposes b.) Risk taking responsibility : This means that the entrepreneur must be willing to take calculated risk to improve the fortunes of his or her organization c.) Human resource recruitment- This means that the entrepreneur must be willing to take the responsibility of identifying competent human resource to meet the goals of his organization  Principles of Entrepreneurship Human resource management: The entrepreneur should have capability to efficiently manage the staff of the organization towards meeting the goals of the organization Management of Material and Financial Resources: The entrepreneur should be able to channel all material and financial resources towards the growth of the organization Opportunity identification: The enetrepreneur should be able to identify market opportunities, social needs and new products that could lead to the growth of his or her organization  Entrepreneurship and Principles of Management Management in business can be defined as that activity that seeks to control the efforts of people who work in coordination to accomplish specific task in an organization. Entrepreneuship management are often subsumed into the basic management concerns. They Include: a.) Organizing Concerns- since managers have to coodinate and organize resources of the firm towards organizational growth b.) Leading Concerns: Managers have to provide sound leadership and direction for their organizations. c.) Financial Concerns: Managers have to manage the financial resources in their organizations.  Entrepreneurship and Principles of Management d.) Staffing concerns: They have the responsibility to hire experts to meet the organizational goals e.) Setting Workers Remuneration: They are also tasked with the responsibility to set wages for their employees f.) Exerting Discipline: They are responsible for exerting authority and ensuring compliance with organizational rules and regulation g.) Corporate Social Responsibility: They are tasked with the management of organizational societal relationships and responsibility of the firm to the public h.) Exerting Equitable Treatment: they ensure all staff and customers are fairly treated.  Characteristics of Good Entrepreneurship Management These are the expected qualities of a good entrepreneur. The entrepreneur must : a.) be a good Talent Hunter b.) have good risk taking abilities c.) be a good manager of human resources d.) be a good multitasking abilities e.) have high Charisma and good motivational skills set  Characteristics of Good Entrepreneurship Management f.) have good speaking abilities: Needed to articulate and drive the goals of the organization. g.) have a strong sense for innovative capabilities and identification of new opportunities and ideas  Risk of Bad Entrepreneurial Management Practices a.) Poor communication skill: this could lead to risk in poor aticulation of the organizational objectives b.) poor risking taking skill: this could lead to business misadventure and losses c.) poor human relations skill: this could lead to poor public image and product management for an organization d.) it col lead to poor multi tasking abilities, costing the organization time and money e.) poor talent acquisition skill: this could lead to poor human capacity build up leading to a host of organizational inefficiencies.  end end Module 2 - Introduction to Change Management FUNAAB, COLMAS DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016  Definition of Change and Reasons for Change Definition of Change - Change is a transition from one state to another by an entity. Reasons for Change- a.) to become more efficient b.) to become more focused c.) to strategically position one self for future challenges d.) to attract attention and capacity to perform e.) to attain equilibrium or stability  Definition of Change Management and organizational change Definition of change management- change management is the approach to transitioning individuals, teams, and organizations to re-direct the use of resources, business process, budget allocations etc to significantly reshape a company or organization Definition of organizational change management- organizational change management is the approach of transitioning the individual, teams, units, organizational process, budget allocation etc of the full organization to suit its present needs.  Reasons for organizational change some of tne reasons for organization change are also the reasons for change in general, they include- a.) to make the organization more efficient b.) to make the organization more focused c.) to strategically position the organization for future challenges d.) to attract attention and capacity to the organization to enable it to perform e.) to attain equilibrium or stability for the organization f.) to adapt to business environmet challenges g.) to adjust to globalization and changes in innovation and technology  Resistance to Change in Organization a.) Cost of change - since change is expensive if not in cost it could be in kind b.) the leisure of maintaining status quo or what is called inertia. Inertia is the reluctance to part with current circumstance c.) Resistance from employees of the organization d.) Questions from and possible loss of some customers who might already be accustomed with old organizational practices about to be done away with e.) Fear - e.g. fear of loss of the share and fear of loss of vital employees  Principles of Change management Principles of change management- these are the guidlines that guide the change management process in an organizartion. They include: a.) Change management process should evolve from a detailed and schalarly study of the organization where it is to be implemented b.) Change management process should begin with a systematic diagnosis of what the problem of the organization is in order to determine the need for change and the organizations capacity for change c.) Change management process must be guided by a management plan that should specify the objective of the change process, the content of the change process and the steps involved in the change process itself. d.) The change management process should be well marketed or communicated to staff, customers and stakeholders of the organization to keep all members of the organization informed about the process e.) A definite time line for the process should be set and strictly adhered to four Steps in effectively managing the organizational change process four Steps in effectively managing the organizational change process a.) A thourogh understanding of the changes in the broader business environment will create a sense of the magnitude of change needed internally b.) Developing the necessary steps and adjustment to be caried out by the organization that is to undergo the change process c.) Enlightening and training of employees to understand and master the new direction of change that the organization is about to follow d) Winning the support of the employees of the organization through persuation to follow thorugh with the change  Factors necessary for good change management- Factors necessary for good change management include- a.) The degree of change to be effected must be measurable b.) The change to be effected must be monitorable e.g. for decrepancies of cost, role and department status and roles c.) Effective communication is vital, it should be ensured that all organization stake holders are carried along d.) Resistance from employees should be addressed and countered with logical arguments e.) capacity to manage change must be identified and ascertained before embarking on the change.  characteristics of good change management These are the signs that change in an organization is well managed or features associated with good change management a.) change is well managed if all stakeholders are well informed, support and realize the need for the changes b.) Change is well managed if the steps involved in the process are well defined c.) change is well managed if a clear definition of the magnitude of the change is well understood and effected accordingly d.) Change is well managed if it is driven more by extrinsic factors rather than instrinsic e.) Change is well managed if cost associated with the change process follow the minimum best path to realization thereby reducing cost for the organization f.) change is well managed if it improves overall efficiency of the organization and its strength to compete with its peers  Risks of not responding to change There exist several risks of not responding to change some include a.) continous poor performance of organizations maintaining old operating practices b.) Loss of local and global relevance due to the loss of efficiency and quality c.) Loss of revenue due to poor perfomance of product and services in the market d.) Poor utilization of organizational resources leading to redundancy and wastages in production e.) poor technology and innovation utilization due to non changing attitude in the operation processes f,) likelihood of organization folding up and going into extinction Module 3- Organizational management Strategies Department of Entrepreneurial Studies ETS 206 funaab  Module 3 Module 3- Organizational management Strategies Definition of organizational Strategies Link between Strategies and management in organizations. Theories of Strategies Methods of developing good organizational strategies Methods of application of organizational strategies to organizational problems.  Definition of organizational Strategies organizational Strategies- Strategy is a comprehensive plan for achieving competitive advantage. Organizational strategies is an organizations comprehensive plan for achieving dominance over its peers Organizations use different types of strategies they include- a.) corporate, b.) business, c.) functional strategies d.) Growth strategies e.) cooperative f.) global and g.) e-business strategies etc  Types of Organizational strategies Global Strategies - These are global business initiatives adopted by businesses or organizations that improves their overall performance. Cooperative strategies- These are strategic alliances with other organizations. E businres strategies- These are the use of the internet and other electronic sources to improve business performances  Types of Organizational strategies corporate strategies- These are strategies that emanate from the management of the organization as a result of management decisions and gives the organization strategic advantage over other organizations in the markets busines strategies- These are strategies arising from business practices and brand quality that often improve the performance of the organization as a whole. functional strategies- These are strategies that are based on the functional operations of the organization such as logistics delivery process or customer feedback process that improves the performance of the organization.  Organizational Management organizational management is the act of planning and utilizing organization resources to improve organizational performance. Organizational strategies often act as a means for making organizational management more effective by specifically channeling management efforts towards the goals and objectives of the organization.  Link between Strategies and management in organizations The link between strategies and management in organization often leads us to the study of strategic management. strategic management is the process of formulating and implementing organization strategies in line with the mission and objectives of the organization.  Link between Strategies and management in organizations strategic management therefore takes place in two stages a.) strategic formulation - this is the process of creating strategies b.) strategic implementation - this is the process of putting strategies into action therefore strategic management = strategic formulation + stategic implementation The Strategic Management Process  Strategic Formulation Process The strategic formulation process considers the organization mission statement, which clearly defines the direction of the organization the organizational operating objectives which outlines what is to be achieved and how they will be achieved.  Strategic Implementation Process Strategic Implementation Process - this evaluates the management, systems, practices and leadership strategies for implementing the goals And explores the expected results from each adopted strategy to choose the most optimal strategies that will yield the best results.  Strategic Management Theories SWOT Analysis SWOT analysis is a tool used in strategic planning to determine the current status of the organization. Internal assessment of the organizational strengths and weaknesses External assessment of environmental opportunities and threats SWOT Analysis Porter Five Forces Analysis  Porter Five Forces Analysis Porter’s five forces provide an opportunity to evaluate the attractiveness of an industry for investment. Unattractive industry intense rivalry, easy entry, substitute products, powerful suppliers and customers Attractive industry low rivalry, barriers to entry, few or no substitute products, weak supplier and customer power  Porter’s Competitive Strategies Porter’s Competitive Strategies - these are strategies recommended by Porter for effective competitive advantage in organizations. They include : Differentiation Strategy Offers products and services that are uniquely different from the competition. Focused Differentiation Strategy offers a unique product to a special market segment. Cost Leadership Strategy Seeks to operate at lower costs than competitors. Focused Cost Leadership Strategy uses cost leadership and target needs of a special market.  Methods of developing good organizational strategies they include: a.) Evaluating the missions and objective of the organization b.) formulating the strategies based on the missions and objectives of the organization. c.) Evaluating the management strategies in running the organization to ensure that the formulated strategies align with them d.) weigh the possible outcome of the formulated strategies in different scenerios e.) Choose the best set of strategies that will achieve optimal results for the organization.  Entrepreneurship and Change Management Module 4- Managing Organizational Change Department of Entrepreneurial Studies ETS 206 COLMAS Federal University of Agriculture Abeokuta 1  Module 4 Module 4- managing organizational Change Why organizations often fail? Why organizations need change? Value creation and introduction of change strategies Methods of Implementing change strategies in modern day organizations How to manage change and retain organizational identity 2  Module 4 Managing Organizational change Organization change if not well managed, could lead to problems in Organizations. The process of the effective management of organization change be a wholistic approach such that, it will be goal and vision driven. In order to achieve this certain questions often asked include: a.) Why do organizations need to effect change? b.) Why do organizations often fail? c.) What value can be added to organizational efforts to promote performance? d.) What methods can be used in modern day organizations to promote change? e.) How can an organization be restructured or reformed without the organization losing it's original identity? 3  Why do organizations often fail? in this case we ask the question why organizations fail or perform below expectations Some of the reasons for organizationational failure include: a.) Short term planning - b.) Risk Hiding- c.) Misallocation of resources- d.) Poor delegation of authority- e.)poor allocation talents- 4  Why do organizations often fail? short planning- short term planning of organizations often stress out employees with high target levels making many employees to result to unethical practices which could affect organizational performances. Ways through which this can affect organizational performance include a.) fines on the organization for unethical practices b.) poor foundation building which affects ability to adequately compete in the future c.) poor strategies often developed in a hurry due to short term plans d.) lack of synergy- short term plans often lack strength, coordination and adequate focus to meet needed goals 5  Why do organizations often fail? Risk hiding- This is actually the act of overlooking pressing concerns and shortcomings that can lead to failure in organizations some of these shortcomings include- a.) mounting losses b.) poor performing products c.) production lapses such as inefficient machinery d.) poor management team 6  Why do organizations often fail? Misallocation of resources- this is a situation where resources are not efficiently allocated across the sections or departments in an organization. This can lead to the following a.) Poor output production i.e. less that would have been produced b.) losses in the use of raw materials c.) poor brands and ability of brands to compete with alternatives offered by other organizations d.) Cost build up and revenue shinkage e.) poor market penetration due to low competing ability of products 7  Why do organizations often fail? Poor delegation of authority- This is the delegation of authority to either inefficient line managers or picking incompetent people to head strategic operations in organizations.Poor delegation of authority can lead to the following- a.) inability to centralize operations to target specific goals b.) poor execution of organizational directives c.) appointment incompetent line managers who lack ability to drive organizational goals across department d.) poor reporting of organizational bottom operations in an adequate manner to top level management e.) gradually failure and operational inefficiency leading to poor organtional performance 8  Why do organizations often fail? poor allocation talents- poor allocation of talent of the poor deployment of competent human resource capabilities of an organization across the departments in the organization. some problems with poor organization talent allocation include: a.) poor contributions of human resources or employees across departments in organization b.) leads to systematic hiccups in work output targets leading to time delays c.) affects the quality of the organizations brand and service delivery d.) It leads to cost build up since internal operations that will have otherwise be handled might be outsourced since time is money 9  Why organizations need change? a.) to build a stronger organizational culture b.) to improve employee work attitude c.) to manage an impeding or ongoing crises d.) to keep abreast with technological advancement e.) due to new government legislation that affects business f.) to take on new market opportunities g.) to improve competing abilities h.) to reduce bloated cost 10  Value creation and introduction of change strategies Value creation and introduction of change strategies One of the factors that organization change aims to drive is to create additional value for the organization either through the improvement of its operations and the quality of its products to satisfy its customers and retain their loyalty. Change strategies are only strategies of organizational change that help oragnizations improve operational efficiency as well as product quality so as to enable organizations meet with their visions and objectives 11  Value creation and introduction of change strategies value creation is the primary aim of any business organization. The reason for this is that it helps organizations sell products and services to customers and help the organization make money to pay shareholders , handle operational cost and pay employees. Advantages of value creation a.) improves operational efficiency (cuuting cost) b.) reduces marketing drive since products are competitive c.) improves revenue base of the organization d.) improves the social image of the organization 12  change strategies Change strategies are strategies utilized to effect change to improve value crations in organizations. Change strategies include: a.) Downsizing operations b.) cost trade offs c.) management shakeups d.) product rebranding e.) employee training and redeployment f.) vision and mission reduction g.) radical innovation and new product introduction h.) Social image reposition and identity retention 13  Methods of Implementing change strategies in modern day organizations a.) Sectoral or departmental studies of organizational weakness b.) wholistic overview of organizational weaknesses c.) Review of mission and vision and their reduction and refocusing d.) employee reorientation e.)product or service delivery evaluation f.) gradual organization reform in case of minimal organization weakenesses g.) total skakeup and total restructuring in case of significant non performance h.) Organizational breakup or merger in case of near case fail or shut down i.) Sectorial sell off or total sell off in cases of non redeemable loss level to set up a smaller and more robust business 14 How to manage change and retain organizational identity This describes how organization can manage change and retain their organizational identity. Retaining organizational identity is often of paramaount concern to organizations and one that many organizations are not likely to achieve in times of crisis or in a period where the concern to improve efficiency and create value is upper- most in the goals of the organization. 15 How to manage change and retain organizational identity Some specific methods of managing change and retaining organization identity include: a.) product brand name retention b.) organization name retention c.) effective communication with customers on new value addition and joint venture operations with other organizations d.) brand name adjustments should have a feel of the previous brand name (e.g. coca cola can adjust to coca cola plus) e.) in case of Mergers organization should include a noticeable part of previous name e.g elephant cement when bought by larfage retained the name and included larfarge (e.g. larfarge elephant cement) 16 Module 5 - People Management 1 FUNAAB, COLMAS DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016 Module 5 - People Management I Module 5 - People Management I Role of Human Resources in Organizational growth Managing change among organization resource persons Overcoming resistance to change Redefining individual role in organizations Redefining organization role in the society  Role of Human Resources in Organizational growth Employees are asset to any business organization. A key to maintaining organizational growth is through the implementation of the organizations ethics, objectives and goals Organizational growth is the improvement in output and maintenance of organizational well being in general such as a.) Employee satisfaction and retention b.) Public image maintenance and revenue growth c.)revenue growth d.)skill acquisition and application d.) product development e.) market development and growth Human resource in organization bring skill, effort and drive towards the relization of organizational goals and objectives if well managed.  Role of Human Resources in Organizational growth Some of the role of human resources in organization growth include a.) Product drive b.) Market facilitation c.) organizational Information reporting to management d) Market information reporting e.) Product information reporting f.) Utilization of organizational facilities as required to meet organizational objectives  Human resource Management Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently. HRM is also the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization’s objectives. According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”. According to Dessler (2008) the policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM.  Scope of Human Resource Management Human Resource Planning Design of the Organization and Job Selection and Staffing Training and Development Organizational Development Compensation and Benefits Employee Assistance Union/Labour Relations Personnel Research and Information System  Scope of Human Resource Management a) Human Resource Planning: The objective of HR Planning is to ensure that the organization has the right types of persons at the right time at the right place. It prepares human resources inventory with a view to assess present and future needs, availability and possible shortages in human resource. Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning develops strategies both long-term and short-term, to meet the man-power requirement. b) Design of Organization and Job: This is the task of laying down organization structure, authority, relationship and responsibilities. This will also mean definition of work contents for each position in the organization. This is done by “job description”. Another important step is “Job specification”. Job specification identifies the attributes of persons who will be most suitable for each job which  Scope of Human Resource Management c) Selection and Staffing: This is the process of recruitment and selection of staff. This involves matching people and their expectations with which the job specifications and career path available within the organization. d) Training and Development: This involves an organized attempt to find out training needs of the individuals to meet the knowledge and skill which is needed not only to perform current job but also to fulfil the future needs of the organization. e) Organizational Development: This is an important aspect whereby “Synergetic effect” is generated in an organization i.e. healthy interpersonal and inter-group relationship within the organization.  Scope of Human Resource Management f) Compensation and Benefits: This is the area of wages and salaries administration where wagesand compensations are fixed scientifically to meet fairness and equity criteria. In addition labour welfare measures are involved which include benefits and services. g) Employee Assistance: Each employee is unique in character, personality, expectation andtemperament. By and large each one of them faces problems everyday. Some are personal someare official. In their case he or she remains worried. Such worries must be removed to make himor her more productive and happy. h) Union-Labour Relations: Healthy Industrial and Labour relations are very important for enhancing peace and productivity in an organization. This is one of the areas of HRM.  Managing change among organization resource persons In managing Overcoming resistance to change Redefining individual role in organizations Redefining organization role in the society  Module 6 - People Management 2 FUNAAB, COLMAS DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016 Module 6- People Management 2 On this module the following will be discussed a.)Human resource and organizational innovation b.) Entrepreneurial innovation management and human resource development c.) Human resource platform for innovation growth and product development d.) Market entry, people management and product success Human resource and Organizational Innovation As stated earlier human resource comprise of all skilled and unskilled labour accessible to an organization overtime Organizational innovation is the level of technology initiative at the disposal of an organization over a specified time, in this case innovation could be a.) A set of methodology for carrying out a task b.) A well ordered plan that can be used in realization of a job function c.) Some form of technology that is utilized by an organization in the realization of its task Organizational Skill and Productivity Organizational Innovation is a subjective way of improving the overall productivity of an organization using some form of technology or set of methodology skilled labour often determine the extent to which an organization can drive productivity using technology and innovation. This is true since people often have to utilize technology to expand productive capabilities in organizations and in many instances these have to be skilled workers Organizational Skill and Productivity Advanatages of Skilled labour on Productivity and output include a.) It reduces cost of training new personnel on learning to use new technology and adaptation to new technology b.) Saves time in the technology change and transformation process in organizations c.)Helps the organization to leverage on its production efficiency and competitive ability in its operating environment d.) Skilled and up to date personnel often draw the attention of the management of organizations to new developments in technology yet to be acquired and utilized e.) Reduces the length of production time since use of technology by skilled workers increases speed in production f.) Cuts down on wastages particularly of raw materials since machines are often more efficient than man Entrepreneurial Innovation management and human resource development Managing innovation in organizations often mean that firms have to invest in research and development. This often cost lots of money. For an organization to be able to manage innovation a research and development department (R&D Department) unit could do the following: i.) If the organization is a production firm, it could research into new methodologies of carrying out specific tasks in its production process Entrepreneurial Innovation management and human resource development ii.) It can decide on which innovations to generate internally or acquire externally based on reports of its R&D Department. iii.) The branding process of a new product could mean that a firm could invest in the brand design. This can also be carried out by the R&D department in order to produce a generally successful product. iv.) A path to improvement of existing products or innovation can be designed in the R&D Department through collection of feedback from the organizations feedback channels Human resource Platforms for innovation growth and Product development The R&D department are often present in large organizations for driving innovation growth and new product development. However smaller organizations can outsource this to R&D consulting firms or consultants to save cost. To sustain R&D policies, Human resource platforms have to be created in many organizations to drive growth, innovation and product development in general Entrepreneurial Innovation management and human resource development a.) Some of these platforms include: a.) Internal training platforms. This is common to large organizations where inhouse training is available. b.) External professional training: This is often an external technical training available to enable personnel acquire trade certificates to practice e.g. guilds certicates or the full trade certificate for technicians c.) Study exemption programmes: This allows workers to go away for some years to acquire a college degree but this occurs after serving the organiztion for some specified period. d.) Product design training feedback work: This is often conducted in house. This is different from inhouse training since it takes a different dimension because product test has to be conducted externally in the field or some form of external market pre product test. Market Entry, Peoples Management and Product Success Human resource training, remuneration and maintaining staff morale are key to sustaining organizational market advantage against competitors. Managing both personnel and customers as well as getting good product approval rating Market Entry, Peoples Management and Product Success Some Importance of skilled personnel on organizational performance and product success include a.) The skill of personnel reflects on product quality b.) Personnel skill improves product appeal, since presence of highly skilled personnel often means the product is well researched and design to meet customers taste c.) The presence of skill personnel reduces the number of defective products in the production process increasing the reliability to product to a high degree d.) If there exist an already competitive market skilled personnel enables an organization produce products that can compete in such competitive markets Module 7 - Organiztional Goals and Management FUNAAB, COLMAS DEPARTMENT OF ENTREPRENEURIAL STUDIES ETS 206 2016 Content Definition of the Concepts of Goals Defintion of organizational Goals Link between organizational success and organizational goals How to develope robust goals Definition of Goals, Types, Advantages and Disadvantages Definition of Goal: A goal is a desired result or outcome of an event Organizational goals is the desired results or outcome that an organization envisions, and plans to commit to and achieve over a period of time Types of Goals a.) Short term goals b.) Long term goals Short term goals are the vision that an organization envisions over a short period of time. Examples of short term goals are weekly, monthly or yearly goals Definition of Goals, Types, Advantages and Disadvantages Advantages of short term goals 1.) They are usually simpler than long term goals 2.) They are often more effective in driving on the short term efforts by an organization 3.) They are less costly than long term goals 4.) They are less likely to be affected by sudden environmental changes and conditions 5.) They are usually easily reviewable, since they require less resource and are often temporal, in cases where there are major challenges with realizing the plan Definition of Goals, Types, Advantages and Disadvantages Disadvantages of short term goals 1.) They plague organizations with the need to review goals once the period for goal implementation expires 2.) They might not help to provide concrete framework for sound organization building since they are for limited periods 3.) It might lead to wastages on the longrun making them a penny wise pound foolish goal setting arrangement 4.) Short term goals could have far reaching effects on organizational planning resources since the organization has to assemble a team to present a new goal once a plan expires distracting attention from implementation Definition of Goals, Types, Advantages and Disadvantages Long Term Goals: These are plans that an organization envisions over a long period of time Examples of long term goals a.) Five year goal plan b.) 15 year goal plan c.) Twenty five year goal plan Advantages of long term goals a.) They are more concrete and robust than short term goals b.) They often produce higher returns for an organization if well planned c.) Investors in an organization are more comfortable with such organizations since there is a fixed direction there is no sudden change in organizational goals d.) They are more effective in driving longterm organizational efforts Definition of Goals, Types, Advantages and Disadvantages Disadvantages of Long term goals a.) They are costlier to achieve b.) They are not easily adjustable due to sudden changes in environmental conditions c.) If poorly projected it might not be easily realizable and have negative effect on organizational resources d.) They are more complex due to the detailed enumerations and requirements of such goals Link Between Organizational Goals and Success Organizational Success as defined earlier is the measure of positive performance of an organization. Therefore the total performance of an organization is a set of all its successes and failures. performance = (+ success)+(-failure) The relationship between organizational goals and success is that goals been a plan and vision of an organization helps the organization project itself for maximum success. Link Between Organizational Goals and Success Some of the link or relationship between goals and success are: a.) Goal helps redirect all organizational efforts towards optimality reducing wastages b.) Goals help direct organizational efforts only to specifics of an organizations visions preventing divergent drive in efforts c.) Goals specify organizational norms and ethics thereby helping organizations ensure standards d.) Goals assist organizations in improving the quality of services and goods produced in relation to those of its competitors giving the organization a competitive advantage or edge over its peers e.) Goals often help organizations make future projection or targets enabling organizations to have a vision of an expected outcome of positive performance for the firm How to Develop Robust Organizational Goals Some factors an organization may wish to consider, they include: a.) In developing goals an organization should consider its immediate responsibility to its customers b.) It should consider what image it wishes to project c.) It should consider its operating environment so that goals set should allow compete and have an edge over its rivals d.) Goals should be realistics and achievable  Entrepreneurship and Change Management Module 8- - Theories of Change Management Department of Entrepreneurial Studies ETS 206 COLMAS Federal University of Agriculture Abeokuta  Contents Module 8 - Theories of Change Management Introduction to the thoeries of change management Applications of Theories of change management to organization development Comparisons of different change theories in strategically engineering the change process in an organization Introduction to the thoeries of change management These are theories that help define the way change should take place in organizations. They include a.) Psychological Contract Theory b.) Nudge Theory c.) The John P. Kotter eight step change theory d.) The Elisabeth Kubler - Ross's Five Stages of Grief theory e.) The Sharon Drew Morgens Facilitation Model  Psychological Contract Theory Psychological Contract Theory - This helps to explain the complex relationship between an organization and its employee. It emerged in the 1960 and is based on the works of theorist like Chris Argyris and Edgar Schein. It focus on the a.) nature of relationship between the emplyee and organization b.) the mutual expectations between the employee input and organizaiozations output c.) the fairness of the employer or organization to its employees d.) it shows that the relationship between the organization and employee is dynamic and a situation that changes relative to employee remuneration and organization output.  Nudge Theory The Nudge theory- is a modern and more flexible way of understanding change in organiztion. It became popular in the US in the 2008. It focus on a.) Understanding of how people think,make decision and behave in organizations b.) managing change in individuals and organizations c.) modifying and identifying unhelpful influences on individuals in organizations d.) It encourages indirect motivation of employees in organiztions e.) it avoids direct enforcement of organization policies or forceful enforcement of policies f.) it accepts that people are different and need diferent approach to lead them g.) It is a soft and gentle way of enforce change in organization  The John P. Kotter eight step change theory John P. Kotter is a Harvard professor who postulated the Kotter eight step change theory. His ideas help in understanding the pressures of change on people and peoples reaction to change. It states that change should be achieved through the following steps a.) Increase urgency - i.e. through inspiring people to embark on specific change b.) Build the guiding team- that is a team to direct the change process c.) get the vision right- get this team to understan the right vision d.) communicate for buy in- persuade people to join the change train e.) empower action- remove barriers for the empowerment of the change f.) create short term wins- set goals within the change process that can be acived in stages to encourage the team and employees g.) dont let up or give up- promote persistence and a no quiting spirit h.) Make the change stick- the change should be reinforced through through training and reminding the team of the goals of the change process  The Sharon Drew Morgens Facilitation Model The Sharon Drew Morgens Facilitation Model- This is use in the process of facilitating change in organizations. It emphasis how change can be facilited in organization through effective communication - these include a.) enabling communication instead of Tender push or persuation - this invloves presenting the change process through interaction instaed of a mild manner and encouraging employees to change b.) communicating employees to buy in- this involves making employees believe in the change through communication of change rahter than convincing c.) rather than Persuade allow employees to see a superior alternative d.) let final decision to join the change crew rest with the employee do not unduly influence. It is many a times not feasible it is only useful in buying and selling where the seller has no authority over the buyer.  The Elisabeth Kubler - Ross's Five Stages of Grief theory The Elisabeth Kubler - Ross's Five Stages of Grief theory refers to refers to the management of change and loss. These include personal loss like bereavement and trauma. The five stages of losses management include a.) Denial management b.) anger management c.) bargaining management d.) depression management e.) acceptance management It belives that the loss process forces humans into the the cycle of denial, anger, bargaining, depression and finally acceptance of the status quo.  Applications of Theories of change management to organization development The psychological contract change theory has stronger positive consequences on organizational change outcome this is because a.) It defines the relationship between the organization and employee and states that the employee joins the organization to help the organization meet its goal for which the employee is rewarded b.) And that the reward must be conmeasurate to the employees effort c.) That fairness to the employee is the responsibility of the organization d.) Helping the organization meet its goal is the responsibilities of the employee e.) And that the relationship may change subject to what ever party's input and level of adherence to its obligations. Applications of Theories of change management to organization development Other theories though applicable are only rudimental for instance the nugde theory only shows how change should be implemented and an alternative non forceful way of implementing change. It however does not emphasis the responsibilities of the parties The Elizabeth Kubler - Ross theory shows how individual change is managed and is applicable to individuals in the organization Quizz 1. Explain five factor responsible for the resistance to change 2. Explain five reasons for organizational failure