1. PGDBA 101
Strategic Leadership and Management Skills
TOPIC 6: ORGANISING
DR DOUG NISBET

2. Slide 10.2
Chapter 10
Organisation structure
• Structure and performance
• Elements in structure: the design options
• Dividing work into functions and divisions
• Coordinating work: alternative ways
• Mechanistic and organic structures
• Learning organisations
• Cases and examples
– Oticon, Multi-show, BAE, Roche, Pixar, Monsanto
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

3. Slide 10.3
Structure and performance
Figure 10.1 Alternative structures and performance
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

4. Slide 10.4
Why study structure?
• Evidence that a company’s structure affects
whether it adds value to resources
– For example, how to divide and coordinate tasks
• Current structure reflects assumptions
• Knowledge enables us to question
– Assumptions in a structure, and its context
– Alternatives available
– Limitations of any structure
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

5. Slide 10.5
Structure and performance?
• As a business grows, those running it divide the
work and coordinate the parts – they create a
structure within which people work
• When an organisation is not performing well,
managers often change the structure
• Reflect the belief that structure affects
performance
– Clarifies expectations and enables monitoring
– Avoids confusion and waste of poor structure
What kind of structure works best?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

6. Slide 10.6
Designing a structure
• Structure is how work is divided, supervised and
coordinated
• It defines the responsibilities of divisions,
departments and people
– What they are expected to do
• Summarised in an organisation chart: compare
Multi-show Events and BAE factory
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

7. Slide 10.7
Structure of a unit in a large business
Figure 10.2 The structure within a BAE aircraft factory (www.baesystems.com)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

8. Slide 10.8
Developing structure in
a small business
Figure 10.3 The organisation structure at Multi-show Events
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

9. Slide 10.9
Vertical structure – how centralised?
What decisions can people at different levels in
the vertical hierarchy take?
• Centralisation (those at the centre make most
decisions) and its opposite, both have
advantages and disadvantages (Table 10.2)
• A shifting balance, reflecting
– Attempts at rational analysis
– Managers’ career interests
– Siemens (see p.362)
What degree of centralisation works best?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

10. Slide 10.10
Grouping work into functions and divisions
Figure 10.5 Five types of structure
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

11. Slide 10.11
Horizontal structure – five ways
• Functional (see BAE Systems)
– Common professional or other expertise (Figure 10.2)
• Divisional
– Products, customers (Figure 10.7) or geography
• Matrix
– In functional groups, work on divisional tasks
• Teams
– Members work on distinct tasks and link with others
• Networks
– Organisation as broker between independent units
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

12. Slide 10.12
Contrasting structures in nursing
Figure 10.7 Task and named-nurse structures
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

13. Slide 10.13
Coordinating work
If divide work, then need to coordinate it by:
• Direct supervision
• Hierarchy
• Standard inputs or outputs
• Rules and procedures
• Information systems (see Siemens)
• Direct personal contact
What method of coordination works best?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

14. Slide 10.14
Mechanistic and organic structures
Table 10.4 Characteristics of mechanistic and organic systems
Source: Based on Burns and Stalker (1961)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

15. Slide 10.15
Contrasting forms
• Burns and Stalker identified alternative forms
• Each appropriate to certain conditions
– Mechanistic – stable
– Organic – unstable
• Fit with conditions led to high performance
• Later work (Lawrence and Lorsch 1967) focused
on differences between units within the same
organisation
• Related differences to contingencies
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

16. Slide 10.16
Contingencies – strategy
– For example, cost leadership or differentiation – what
structure to encourage relevant behaviour?
• Cost leadership requires efficiency – a functional
structure?
• Differentiation needs innovation – matrix or team-
based?
– Monsanto an example of a company whose innovative
business is supported by a highly organic structure
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

17. Slide 10.17
Strategies and structures
Figure 10.8 Relationship between strategies and structural types
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

18. Slide 10.18
Contingencies – technology
What structure best supports technologies used to
transform inputs, in manufacturing or services?
• For example, production line or custom-made?
• For example, information systems enable different
ways of delivering services, and prompt a search
for new structures to support relevant behaviour?
• Chapter 18 (Managing Operations and Quality)
shows other ways of designing transformation
processes using different technologies
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

19. Slide 10.19
Contingencies – business environment
What structure best supports people as they cope
with different environments?
• Burns and Stalker (1961) contrasted
– Rayon plant (stable market, few changes) with
– Small electronics companies (volatile, uncertain
market, many changes)
• Lawrence and Lorsch (1967) showed that firms
face many environments with different needs
– How to link differently structured departments?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

20. Slide 10.20
Environment and structure
Figure 10.9 Relationship between environment and structure
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

21. Slide 10.21
Contingencies – size and life cycle
What structure best supports an organisation as it
grows (number of staff)?
• Birth – informal, little division of labour, organic
• Youth – decisions shared more widely,
specialists employed
• Mid-life – extensive division of responsibility, with
rules for coordination
• Maturity – mechanistic, perhaps divisions,
selling some units that no longer fit
Problem of managing the transitions
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

22. Slide 10.22
Contingencies or management choice?
• Contingency
– Effective performance depends on managers
adopting a structure suited to the key contingencies of
the environment in which it is operating
• Management choice
– Managers have greater degree of choice over the
structures they adopt
• Standards of performance not always rigorous
• Preferred choices may have limited effect on
performance
• Political interests and ambitions shape choice
• Implications for role of managers?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

23. Slide 10.23
Learning organisations
Figure 10.10 Clusters of learning organisation features
Source: Pedler et at. (1997)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

24. Slide 10.24
Integrating themes
Sustainable performance
Local autonomy may permit bad practice, or use
local knowledge to design good practice
Governance and control
Financial crises routine lead to calls for tougher
controls – but most failing companies have them
Internationalisation
Bartlett and Ghoshal (2002) show the dilemmas
firms face in designing international structures
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

25. Slide 10.25
Conclusion
• Ideas of
– Vertical and horizontal structures
– Coordination
– Mechanistic and organic forms
• Provide ways to analyse current practice
• Practice reflects managers’ assumptions
(and personal and career interests)
• Are they right for the context, what alternatives
may work better and what are their limitations?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

26. Slide 10.26
The HRM territory
Figure 11.1 Map of the HRM territory
Source: Beer et al. (1984). Reproduced with permission from Professor Michael Beer
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

27. Slide 10.27
Guest (1987) HRM policies and
outcomes
Table 11.1 Policies for supporting HRM and organisational outcomes
Source: Guest (1987), p. 503
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

28. Slide 10.28
Four propositions in HRM theory
Guest (1987) identified four propositions of a theory
of HRM
• Integration – Linking HRM policies and strategy will
enhance performance
• Commitment – will lead employees to be more
satisfied, perform better, stay longer and be willing to
change
• Flexibility – in both structures and employees will
make it easier to change with conditions
• Quality – high quality staff, suitably managed, will
deliver high quality results
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

29. Slide 10.29
HRM philosophy
External fit Internal fit
• Link between wider • Consistency of HRM
strategy and HRM policies
strategy • For example,
• For example, different teamworking is
approaches for low cost supported by reward
and differentiation systems
strategies
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

30. Slide 10.30
Fit between HRM, structure and context
Figure 11.2 Fit between HRM, strategy, structure and environment
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

31. Slide 10.31
Chapter 12
Information systems and e-business
• Why study IS and e-business?
• Convergence transforms how people add value
• Value depends on technology and organisation
• Operating and management systems
• Applications – enterprise resource planning,
customer relations, knowledge and e-business
• IS and the tasks of managing
• Cases and examples:
– Google, SelectMinds, Renault, Iris, Nestlé
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

32. Slide 10.32
Why study IS and e-business?
• Managing depends on information (Fig. 12.1)
• Steady increase in power of computing systems
• IS moved from background to foreground tasks
• Convergence of data, voice and visual systems
is changing business and public services
• Effective use of IS to support strategy depends
on managing organisational issues.
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

33. Slide 10.33
Management depends on
information
Figure 12.1 The role of Information systems in Organisations
Source: Boddy et al. (2005)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

34. Slide 10.34
Managing new opportunities to add
value
Technological developments enable managers to:
Use IS in established organisations to add value to
data – Figure 12.3
AND
Producers and consumers to co-create value –
Figure 12.2
Value depends on managing technology AND
organisation – Figure 12.4
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

35. Slide 10.35
Stages in using the Internet
Figure 12.3 Stages in using the Internet
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

36. Slide 10.36
Co-creation (or Wikinomics)
Figure 12.2 Traditional delivery and customer participation
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

37. Slide 10.37
Computer-based IS
Figure 12.4 The elements of a computer-based IS
Source: Boddy et al. (2009a)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

38. Slide 10.38
Data, information and knowledge
• Data
– Recorded descriptions of things and events
• Information
– Processed data that means something to the
person receiving it
• Knowledge
– A property of people which guides their action –
embodies experience and learning
• Relate to inputs, transformation and outputs
– Enables people to add value to resources
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

39. Slide 10.39
Operating and management systems
Figure 12.5 Types of information system
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

40. Slide 10.40
E-commerce and e-business
Internet allows companies to coordinate
processes with others, regardless of distance
• E-commerce
– Selling goods or services over the Internet (Google)
• E-business
– Integration, through the Internet, of all processes of
an organisation, from its suppliers through
to its customers (Nestlé shows the challenges)
• Common applications: CRM, ERP and KM
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

41. Slide 10.41
How the Internet changes the links
Figure 12.6 Reinventing the supply chain
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

42. Slide 10.42
Customer relationship
management (CRM)
Figure 12.7 Communications methods and message
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

43. Slide 10.43
Management issues
of CRM systems
Potential benefits:
• Gather customer data swiftly
• Identify most and least valuable customers
• Increase loyalty by providing customised offers
• Reduce costs of maintaining and securing
customers
• See Tesco (Part 6 case) for their Clubcard scheme
Possible disadvantages:
• Hard to implement – require changes to many
other systems
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

44. Slide 10.44
Enterprise resource
planning (ERP) systems
Figure 12.8 Anatomy of an enterprise system
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

45. Slide 10.45
Management issues
of ERP systems
• Potential benefits
– Integrate customer and financial information
– Standardise manufacturing processes and reduce
inventory
– Improve information for management decisions
across sites
– Link suppliers and customers online
• Difficulties include
– Generic systems may diminish uniqueness
– Promote centralisation – is that suitable?
– Complex to implement – many fail
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

46. Slide 10.46
Knowledge management systems
• Potential benefits
– Improve way an organisation creates, captures and
uses knowledge
– Relates to inputs, transformation and outputs
– Examples of BP and Buckman Labs
• Difficulties include
– Most valuable knowledge is tacit (shared
understanding, often unwritten): IS best suited
to explicit, codified knowledge
– Do rewards structures encourage people to share
knowledge?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

47. Slide 10.47
IS, strategy and organisation
Figure 12.9 How information systems can change competitive forces: Porter’s model
Source: Adapted and reprinted by permission of Harvard Business Review. Exhibit adapted from Strategy and the Internet, Harvard Business Review, vol. 79, no. 3, pp. 63–78 by M. E.
Porter, Copyright © 2001 by Harvard Business School Publishing Corporation; all rights reserved
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

48. Slide 10.48
Integrating themes
Sustainable performance
Wide use of IS is part of the problem (cause
waste), and part of the solution (reduce waste)
Governance and control
Weill and Ross (2005) show the value of
developing effective IS governance systems
Internationalisation
IS enables the growth of global trade – but
managers also need to take account of national
cultures when introducing cross-border systems
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

49. Slide 10.49
Conclusion
• Developing technologies have moved IS from
the background to the foreground of managing
• Focusing on the technical aspects of computer-
based systems will usually add less value than
attending to the strategic, human and
organisational aspects
• Models presented enable you to question
whether the assumptions behind a proposal are
right for the context, to explore alternatives and
to recognise limitations
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

50. Slide 10.50
Chapter 13
Managing change and innovation
• Episodes or constant feature of managing?
• Initiating change – interaction with context
• Four models of change
• Driving and restraining forces
• Forms and sources of resistance
• Innovation
• Cases and examples
– Vodafone/Ericsson, GKN, Dupont, Philip Morris
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

51. Slide 10.51
An overview of the themes
Figure 13.1 A model of the change process
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

52. Slide 10.52
Why study change?
• Managers frequently change aspects of their
organisation to improve performance
• Alternative ways of managing change reflect
assumptions about its nature
• Models enable you to question
– Whether the approach being used is suitable
for the context
– What alternatives may work better in that
situation?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

53. Slide 10.53
Change and managing
• Many see disruption at centre of role
– Focus on inputs, transformation and outputs
• External environment main driver
– Customers, shareholders, competition: see
Siemens
• Vodafone case typical
– Significant, will affect many people, unfamiliar
territory
• Models and perspectives to gain insight into the
activity and to think critically about proposals
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

54. Slide 10.54
Interaction of change and context
• External changes threaten a performance gap
– Results not meeting expectations
• Performance imperatives
– Flexibility, innovation AND efficient operations
• Depend on making internal changes
– When people perceive elements of the internal
context obstruct external expectations – Figure
13.2 and examples in Table 13.1
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

55. Slide 10.55
The internal context
Figure 13.2 Elements of the internal context of management
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

56. Slide 10.56
Interaction of change and context
(Continued)
• People interpret contexts and shape project
– Influenced by local/personal and corporate interests
• People initiate project to change context
– Changing one or more elements in Figure 13.2
• Those changes become the new context
– Elements in Figure 13.2 affect capacity for change
• Culture, technology etc.
– ‘receptive and non-r. contexts’ (Pettigrew, 1992)
• Continuous interpretation and interaction
between context and successive change projects
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

57. Slide 10.57
History and levels
• Present context a result of previous decisions
– Past, and potential futures, affect how people
interpret proposals
• Context has several levels
– For example, corporate, divisional, work unit
– Change at one level may have unintended
effects at other levels (negative or positive)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

58. Slide 10.58
Models of change – life cycle
• Change goes through a series of steps
• Success depends on managing these efficiently
– Objectives, responsibilities, deadlines, budgets,
monitor
– Focus on planning and control
• Many established tools and techniques –
Figure 13.3 and Figure13.4
• A rational process
– Suited to which types of project or conditions?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

59. Slide 10.59
Planning tools
Figure 13.3 A simple bar chart
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

60. Slide 10.60
The life cycle illustrated
Figure 13.4 A project life cycle
Source: Lock (2007) p. 8
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

61. Slide 10.61
Models of change – emergent
• Change takes place in an uncertain context,
and unrealistic to expect outcomes to be close
to plan
• Success depends on
– Learning during the project
– Adapting to changing conditions
– Managing interest groups
• Plan, but be ready to change
• See emergent perspective on strategy
(Chapter 8, including IKEA example (p.230))
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

62. Slide 10.62
Models of change – participative
• Change relies on those affected being willing
to cooperate with the change
• Success depends on
– Developing ownership and commitment
– Consulting widely for ideas
– Seeking consensus
• A democratic process
– Suited to which conditions?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

63. Slide 10.63
Models of change – political
• Change often threatens established interests,
who will oppose it
• Success depends on
– Building power sources
– Creating alliances and coalitions
– Manipulating information to support position
• A political process
– Suited to which conditions?
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

64. Slide 10.64
Kurt Lewin – driving
and restraining forces
Figure 13.5 Driving and restraining forces
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

65. Slide 10.65
Resistance to change
• How people react to change affects, and is
affected by, those promoting it
– From strong support to strong opposition
• To analyse resistance,
– Problems with content of change – see Table 13.3
– Problems with process – see ‘models of change’
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

66. Slide 10.66
Innovation
• Innovation is the process through which new
ideas, objects, behaviours and practices are
created developed and implemented
• Incremental innovations are small changes in a
current product or process which brings a minor
improvement
• Radical innovations are large game changing
developments that alter the competitive
landscape
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

67. Slide 10.67
Systems view of innovation
Figure 13.6 Systems view of innovation
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

68. Slide 10.68
Sources of innovation
Figure 13.7 Sources of innovation
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

69. Slide 10.69
The Process of innovation
Figure 13.8 A model of the innovation process
Source: Based on Tidd and Bessant (2009)
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

70. Slide 10.70
The 4 Ps of innovation
• Product innovations are changes or
enhancements to the features of the things that
the organisations sells
• Process innovations are changes in the
processes that create the product that is sold or
deliver the service that the customer buys
• Position innovations are changes in the way that
the product of service offering is targeted
• Paradigm innovations are changes in how
companies frame what they do
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

71. Slide 10.71
Organisational support factors
• Strategy – innovation is explicitly called for in the
corporate strategy
• Structure – roles and jobs are defined to aid in
innovative behaviour
• Style – management empowers the workforce to
behave innovatively
• Support – IT systems are available to support
innovative behaviour
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

72. Slide 10.72
Integrating themes
Sustainable performance
The search for this offers opportunities to
innovators who can find ways to reduce waste
Governance and control
Financial crises show the dangers of innovation,
when not balanced by governance systems
Internationalisation
Companies want to encourage local innovation,
but need to ensure this does not lead to wasteful
duplication within the business
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

73. Slide 10.73
Conclusion
• External and internal forces driving change
• Managing it depends on having a model of the
process – such as the interaction model
• Four perspectives offer complementary models
– which is best for the situation
• Innovation can be used as a tool to enhance
what the company offers to the market
David Boddy, Management: An Introduction, 5th Edition, © Pearson Education Limited 2011

74. Learning Objectives
• To understand the input-output model and the internal and
external environments of a business organisation;
• To be aware of the different types and legal forms of
business organisation and their benefits and drawbacks
• To understand the various roles within management
• To understand the management tasks of planning,
organising, leading and controlling and how these can be
achieved through the various dimensions of internal and
external context.

75. A Model of Business Management
Environment

76. The Input-output Model
Add Value
Transformation
Input Output
Process
Create Waste

77. Classifying Businesses
• Size
– Small, medium, large
• Type of Industry
– Primary, secondary, tertiary
• Sector
– Private, public
• Legal Status
– Sole trader, partnership, limited company
For information and statistics about Ugandan Business follow this
link to the Ugandan Bureau of Statistics website( if you based in
another country search for an equivalent site):
http://www.ubos.org

78. Legal Forms of Business – Private
Sector
• Sole Trader
• Partnership
• Limited Companies
– Private (Ltd)
– Public (Plc)
• Co-operative Societies
- Uganda Co-operative Alliance
- http://www.uca.co.ug

79. Franchising, Licensing and Joint
Ventures
• Franchising:
– is an arrangement where one party (the franchiser) sells the right to another party (the
franchisee) to market its product or service;
– Franchise Expo: http://www.franchiseexpo.co.uk/
– The Franchise Business: http://www.franchisebusiness.co.uk/
– Franchise Direct (Ugandan Franchises):
http://www.franchisedirect.com/internationalfranchises/uganda/217/
– The UK Franchise Directory:
http://www.theukfranchisedirectory.net/match/franchises.php?gclid=CKKD5-
2WuqYCFYUe4Qoden-FHA
• Licensing:
– is a firm in one country (the licensor) that authorises a firm in another country (the licensee)
to use its intellectual property (e.g. patents, copyrights, trade names, know-how) usually in
return for royalty payments.
• Joint Venture:
– is a jointly owned and independently incorporated business venture involving more than one
organisation;
– ranges from two companies joining together in the same domestic market, to joint
private/public sector ventures between participants from different countries.

80. Public Sector Organisations
Public sector organisations:
• Central government departments (e.g. departments in charge of pension,
education, healthcare, defence, transport, etc.);
• Local authorities;
• Non-departmental public bodies or quangos (e.g. Uganda Wildlife Authority);
• Central government trading organisations (e.g. Posta Uganda)
http://www.ugapost.co.ug/
• Public corporations (e.g. Uganda Printing and Publishing Corporation
http://www.uppc.co.ug/
• Public Service Commission (Uganda): http://psc.go.ug/
• Ministry of Public Service (Uganda): http://www.publicservice.go.ug/

81. Public Corporations
• Public corporations:
– Are statutory bodies, incorporated (predominantly) by a special Act of
Parliament;
– They have a separate legal identity from the individuals who own them and
run them.
– They are governed by the government department which oversees its
operations.
• Nationalised Industry:
– Private companies taken into state ownership
• Privatised state industries:
– Are those industries that were turned into public limited companies.
Examples in Uganda included Ugandan Airlines privatisation which was not a
success and National Insurance Corporation (NIC)
• Golden share:
– Government influence in public corporations,

82. Legal Structures - implications
• Implications in private sector:
– The degree of personal control over operational and strategic business
decisions;
– The degree of personal liabilities;
– The degree of power and/or autonomy in decision making;
– The cost of establishing the business;
– The legal requirements concerning the provision of public information;
– The taxation position;
– Commercial needs, including access to capital;
– Business continuity.

83. Functional Specialisation in
Management
• Company Managers
– Chief Executive Officers (CEO); Managing Director;
Proprietor
• General Managers
– Subsidiary; Division
• Functional Managers
– Line Managers (branch; team; department)
– Staff Managers (HR; Accounts; Safety: Purchasing )
• Project Managers
– Cross-functional teams

84. Management Hierarchies
• Operators
• Supervisors
• First Line Managers
• Middle Managers
• Senior Managers
• Directors

85. Influencing - Mintzberg
Monitor
Informational Disseminator
Spokesperson
Interpersonal Figurehead
Leader
Liaison
Entrepreneur
Decisional Disturbance handler
Resource allocator
Negotiator

86. Managing Tasks

87. Internal Context (or Environment)

88. Critical Thinking
Critical thinking……
‘involves our recognising the assumptions underlying
our beliefs and behaviours. It means we can give
justifications for our ideas and actions. Most,
important, perhaps it means we try to judge the
rationality of these justification…..by comparing
them to a range of varying interpretations and
perspectives’
SOURCE: Brookfield (1987) in Boddy (2011), p26.

89. Process of Critical Thinking
• ANALYSIS
• Identifying and challenging assumptions
• Recognising the importance of context
• Imagining and exploring alternatives
• Seeing limitations
• SYNTHESIS
• Making conclusions
• Decision-making

90. Recommended Texts
BODDY, D (2011) Management – an introduction (5th
Edition) Harlow:Prentice Hall Chapter 1
WORTHINGTON, I and BRITTON, B (2009) The
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Harlow:Prentice Hall Chapters 10, 11, 12