Topic 6

11
TOPIC 6TOPIC 6
MANAGEMENT OFMANAGEMENT OF
RELATIONSHIPSRELATIONSHIPS

22
Lecture outline:Lecture outline:
 Concepts of power, bureaucracy,Concepts of power, bureaucracy,
authority, responsibility, leadership andauthority, responsibility, leadership and
delegation.delegation.
 Organisational cultureOrganisational culture
 Management of conflictManagement of conflict
 Issues of business ethics and corporateIssues of business ethics and corporate
governancegovernance

33
Concept of PowerConcept of Power
 Power is a complex and dynamic concept andPower is a complex and dynamic concept and
difficult to define easily.difficult to define easily.
 At a broad level, power can be interpreted inAt a broad level, power can be interpreted in
terms of control or influence over the behaviour ofterms of control or influence over the behaviour of
other people with or without their consent.other people with or without their consent.
 Power can also be interpreted in terms of thePower can also be interpreted in terms of the
extent of the influence which can actually beextent of the influence which can actually be
exercised over other people.exercised over other people.
 The most important aspect of power is probablyThe most important aspect of power is probably
dependency, Example:dependency, Example:
 ““a person can have power over you only if he ora person can have power over you only if he or
she controls something you desire”she controls something you desire”

44
 Power is an inherent feature of workPower is an inherent feature of work
organisations and is often the underlying realityorganisations and is often the underlying reality
behind the decision-making process.behind the decision-making process.
 It is central to the framework of order andIt is central to the framework of order and
system of command through the operation ofsystem of command through the operation of
bureaucratic structures and the implementationbureaucratic structures and the implementation
of rules, policies and procedures.of rules, policies and procedures.
 Lack of power and influence, and office politics,Lack of power and influence, and office politics,
are among the main sources of managerialare among the main sources of managerial
stress within organisation.stress within organisation.

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 Management control is the predominantManagement control is the predominant
means by which activities of staff aremeans by which activities of staff are
guided towards the achievement ofguided towards the achievement of
organisational goals.organisational goals.
 The exercise of power is that which comesThe exercise of power is that which comes
from a position of formal authority within thefrom a position of formal authority within the
management structure of the organisationmanagement structure of the organisation
and which legitimises control overand which legitimises control over
subordinate staff.subordinate staff.

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AuthorityAuthority
 Is the right to take action or make decisions thatIs the right to take action or make decisions that
the manager would otherwise have done.the manager would otherwise have done.
 Is the power to hold people accountable for theirIs the power to hold people accountable for their
actions and to influence directly what they do andactions and to influence directly what they do and
how they do it.how they do it.
 Authority legitimises the exercise of power withinAuthority legitimises the exercise of power within
the structure and rules of the organisation.the structure and rules of the organisation.
 Enables the subordinate to issue valid instructionsEnables the subordinate to issue valid instructions
for others to follow.for others to follow.
 E.g: Shareholders have ultimate authority over theE.g: Shareholders have ultimate authority over the
use of a company’s resources. Legally, they ownuse of a company’s resources. Legally, they own
the company and exercise control through theirthe company and exercise control through their
representatives, board of directors.representatives, board of directors.

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ResponsibilityResponsibility
 An obligation by the subordinate to performAn obligation by the subordinate to perform
certain duties or make certain decisionscertain duties or make certain decisions
and having to accept possible reprimandand having to accept possible reprimand
from the manager for unsatisfactoryfrom the manager for unsatisfactory
performance.performance.
 Responsibility cannot be delegated.Responsibility cannot be delegated.
 Delegating authority can increase theDelegating authority can increase the
manager’s responsibility since there ismanager’s responsibility since there is
additional responsibility for theadditional responsibility for the
subordinate’s task.subordinate’s task.

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DelegationDelegation
 Is the process of entrusting authority andIs the process of entrusting authority and
responsibility to others throughout theresponsibility to others throughout the
various levels of the organisations.various levels of the organisations.
 Delegation can be upwards or laterally orDelegation can be upwards or laterally or
downwards.downwards.
 Downsizing and de-layering limit theDownsizing and de-layering limit the
opportunities for delegation.opportunities for delegation.

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9
BureaucracyBureaucracy
 Max Weber designed a hierarchy so that itMax Weber designed a hierarchy so that it
effectively allocates decision-makingeffectively allocates decision-making
authority and control over resourcesauthority and control over resources
 Bureaucracy:Bureaucracy: a form of organizationala form of organizational
structure in which people can be heldstructure in which people can be held
accountable for their actions because theyaccountable for their actions because they
are required to act in accordance with rulesare required to act in accordance with rules
and standard operating proceduresand standard operating procedures
 Founded on a formal, clearly defined andFounded on a formal, clearly defined and
hierarchical structure.hierarchical structure.
 Red tape and rigidityRed tape and rigidity

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 Principle one:Principle one: a bureaucracy is founded ona bureaucracy is founded on
the concept of rational-legal authoritythe concept of rational-legal authority
 Rational-legal authority:Rational-legal authority: the authority athe authority a
person possesses because of his or herperson possesses because of his or her
position in an organizationposition in an organization
 Hierarchy should be based on the needs of theHierarchy should be based on the needs of the
task, not on personal needstask, not on personal needs
 People’s attitudes and beliefs play no part inPeople’s attitudes and beliefs play no part in
how the bureaucracy operateshow the bureaucracy operates

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BureaucracyBureaucracy (cont.)(cont.)
 Principle two:Principle two: Organizational roles areOrganizational roles are
held on the basis of technicalheld on the basis of technical
competence, not because of social status,competence, not because of social status,
kinship, or hereditykinship, or heredity
 Principles one and two establish thePrinciples one and two establish the
organizational role as the basicorganizational role as the basic
component of organization structurecomponent of organization structure

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 Principle three:Principle three: A role’s task responsibilityA role’s task responsibility
and decision-making authority and itsand decision-making authority and its
relationship to other roles in the organizationrelationship to other roles in the organization
should be clearly specifiedshould be clearly specified
 Role conflict:Role conflict: when two or more people havewhen two or more people have
different views of what another person should do,different views of what another person should do,
and as a result, make conflicting demands onand as a result, make conflicting demands on
that personthat person
 Role ambiguity:Role ambiguity: the uncertainty that occurs for athe uncertainty that occurs for a
person whose tasks or authority are not clearlyperson whose tasks or authority are not clearly
defineddefined

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 Principle four:Principle four: the organization of roles inthe organization of roles in
a bureaucracy is such that each lowera bureaucracy is such that each lower
office in the hierarchy is under the controloffice in the hierarchy is under the control
and supervision of a higher officeand supervision of a higher office
 Organizations should be arrangedOrganizations should be arranged
hierarchically so that people can recognizehierarchically so that people can recognize
the chain of commandthe chain of command

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 Principle five:Principle five: rules, standard operatingrules, standard operating
procedures, and norms should be used toprocedures, and norms should be used to
control the behavior and the relationshipscontrol the behavior and the relationships
among roles in an organizationamong roles in an organization
 Rules and SOPs are written instructions thatRules and SOPs are written instructions that
specify a series of actions intended to achievespecify a series of actions intended to achieve
a given enda given end
 Norms are unwrittenNorms are unwritten
 Rules, SOPs, and norms clarify people’sRules, SOPs, and norms clarify people’s
expectations and prevent misunderstandingexpectations and prevent misunderstanding

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 Principle six:Principle six: administrative acts,administrative acts,
decisions, and rules should be formulateddecisions, and rules should be formulated
and put in writingand put in writing
 Bureaucratic structure provides an organizationBureaucratic structure provides an organization
with memorywith memory
 Organizational history cannot be alteredOrganizational history cannot be altered

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Advantages of BureaucracyAdvantages of Bureaucracy
 It lays out the ground rules for designing anIt lays out the ground rules for designing an
organizational hierarchy that efficiently controlsorganizational hierarchy that efficiently controls
interactions between organizational membersinteractions between organizational members
 Each person’s role in the organization is clearlyEach person’s role in the organization is clearly
spelled out and they can be held accountablespelled out and they can be held accountable
 Written rules regarding the reward andWritten rules regarding the reward and
punishment of employees reduce the costs ofpunishment of employees reduce the costs of
enforcement and evaluating employeeenforcement and evaluating employee
performanceperformance
 It separates the position from the personIt separates the position from the person
 It provides people with the opportunity to developIt provides people with the opportunity to develop
their skills and pass them on their successorstheir skills and pass them on their successors

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The Problems ofThe Problems of
 Managers fail to properly control theManagers fail to properly control the
development of the organizational hierarchydevelopment of the organizational hierarchy
 Organizational members come to rely tooOrganizational members come to rely too
much on rules and standard operatingmuch on rules and standard operating
procedures (SOPs) to make decisionsprocedures (SOPs) to make decisions
 Such overreliance makes themSuch overreliance makes them
unresponsive to the needs of customers andunresponsive to the needs of customers and
other stakeholdersother stakeholders

1818
LeadershipLeadership
 It is difficult to generalise about the meaning ofIt is difficult to generalise about the meaning of
leadership.leadership.
 But, we can say leadership is a relationship through whichBut, we can say leadership is a relationship through which
one person influences the behaviour or actions of otherone person influences the behaviour or actions of other
people.people.
 The changing nature of work organisations i.e. flatterThe changing nature of work organisations i.e. flatter
structure, recognition of the efficient use of humanstructure, recognition of the efficient use of human
resources have combined to place growing importance onresources have combined to place growing importance on
leadership.leadership.
 The nature of management is moving away from theThe nature of management is moving away from the
emphasis on getting results by the close control of theemphasis on getting results by the close control of the
workforce and towards an environment of coaching,workforce and towards an environment of coaching,
support and empowerment.support and empowerment.
 Good leadership involves the effective process ofGood leadership involves the effective process of
delegation and empowerment.delegation and empowerment.

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LeadershipLeadership
 Leadership style:Leadership style:
 The authoritarian (or autocratic) styleThe authoritarian (or autocratic) style
 The democratic styleThe democratic style
 A laissez-faire (genuine) styleA laissez-faire (genuine) style

2020
Organisation CultureOrganisation Culture
 Organisational culture is a general concept that isOrganisational culture is a general concept that is
difficult to define or explain precisely.difficult to define or explain precisely.
 Definition:Definition:
 ““How things are done around here”.How things are done around here”.
 The collection of traditions, values, policies, beliefs andThe collection of traditions, values, policies, beliefs and
attitudes that constitute a pervasive context forattitudes that constitute a pervasive context for
everything we do and think in an organisation.everything we do and think in an organisation.
 Organisational culture has three elements –Organisational culture has three elements –
shared value; a set norms of behaviour; andshared value; a set norms of behaviour; and
symbols and symbolic activities.symbols and symbolic activities.

2121
 Cartwright views culture asCartwright views culture as a system ofa system of
management authority.management authority.
 When accepted by employees,When accepted by employees, cultural valuescultural values
increase the power and authority of managementincrease the power and authority of management
inin three waysthree ways. Employees. Employees
 identify themselves with their organisation and accept itsidentify themselves with their organisation and accept its
rules when ‘it is the right thing to do;rules when ‘it is the right thing to do;
 internalise the organisations values when they believeinternalise the organisations values when they believe
they are right; andthey are right; and
 are motivated to achieve the organisations objectives.are motivated to achieve the organisations objectives.

2222
 Schein suggests a view of organisationalSchein suggests a view of organisational
culture based on distinguishing three levelsculture based on distinguishing three levels
of culture:of culture:
 Level 1 – ArtefactsLevel 1 – Artefacts
 It is the most visible level – the constructed physicalIt is the most visible level – the constructed physical
and social environment.and social environment.
 Includes physical space and layout, theIncludes physical space and layout, the
technological output, writtens and spoken languagetechnological output, writtens and spoken language
and the overt behaviour of group members.and the overt behaviour of group members.

2323
 Level 2 – Expoused valuesLevel 2 – Expoused values
 Cultural learning reflects someones original values.Cultural learning reflects someones original values.
 Solutions about how to deal with a new task, issueSolutions about how to deal with a new task, issue
or problem are based on convictions of reality.or problem are based on convictions of reality.
 If the solution works, the value can transform intoIf the solution works, the value can transform into
belief. Values and beliefs become part of thebelief. Values and beliefs become part of the
conceptual process by which group members justifyconceptual process by which group members justify
actions and behaviour.actions and behaviour.

2424
 Level 3 – Basic underlying assumptionsLevel 3 – Basic underlying assumptions
 When a solution to a problem works repeatedly it comes to beWhen a solution to a problem works repeatedly it comes to be
taken for granted.taken for granted.
 Basic assumptions are unconsciously held learned responses.Basic assumptions are unconsciously held learned responses.
They are implicit assumptions that actually guide behaviourThey are implicit assumptions that actually guide behaviour
and determine how group members perceive, think and feeland determine how group members perceive, think and feel
about things.about things.
 Schein suggests that the basic assumptions areSchein suggests that the basic assumptions are
treated as the essence – what culture really is –treated as the essence – what culture really is –
and values and behaviours are treated asand values and behaviours are treated as
observed manifestations of culture essence.observed manifestations of culture essence.

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Figure: Where an Organization’sFigure: Where an Organization’s
Culture Comes FromCulture Comes From

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The cultural web of an organisation
Source: Johnson, G., Scholes, K. and Whittington, R. Exploring Corporate Strategy, seventh edition, Financial Times Prentice Hall (2005), p. 202. Reproduced with permission from
Pearson Education Ltd.

2727
The importance ofThe importance of
cultureculture
 Culture and organisation control:Culture and organisation control:
 Culture as the largest organisational control system thatCulture as the largest organisational control system that
dictates how crazy or idiosyncratic people can be.dictates how crazy or idiosyncratic people can be.
 Companies have both overt and covert culture thatCompanies have both overt and covert culture that
influences both business and organisation behaviour.influences both business and organisation behaviour.
 The covert set can be quite dysfunctional and costly. Culture – theThe covert set can be quite dysfunctional and costly. Culture – the
assumptions, beliefs, values and norms that drive ‘the way we doassumptions, beliefs, values and norms that drive ‘the way we do
things here’ – is the largest and most controlling of the systemsthings here’ – is the largest and most controlling of the systems
because it affects not only overt organisational behaviour but alsobecause it affects not only overt organisational behaviour but also
the shadow-side behaviour.... Culture lays down norms for thethe shadow-side behaviour.... Culture lays down norms for the
social system. In one institution you had to be an engineer to risesocial system. In one institution you had to be an engineer to rise
to the top. There was no published rule, of course, it was just theto the top. There was no published rule, of course, it was just the
way things here. In one bank you could never be made an officer ifway things here. In one bank you could never be made an officer if
you were polyester clothes. Culture tell us what kind of politics areyou were polyester clothes. Culture tell us what kind of politics are
allowed and just how members of an organisation are allowed toallowed and just how members of an organisation are allowed to
play the political game.play the political game.

2828
cultureculture
 Culture influences the behaviour of allCulture influences the behaviour of all
individuals and groups within theindividuals and groups within the
organisation:organisation:
 Culture impacts most aspects of organisationalCulture impacts most aspects of organisational
life, such as how decisions are made, wholife, such as how decisions are made, who
makes them, how rewards are distributed, whomakes them, how rewards are distributed, who
is promoted, how people are treated, how theis promoted, how people are treated, how the
organisations responds to its environment,organisations responds to its environment,
and so on.and so on.

2929
cultureculture
 Culture and organisational performance:Culture and organisational performance:
 Culture is clearly an important ingredient of effectiveCulture is clearly an important ingredient of effective
organisational performance.organisational performance.
 In order to aid long-term performance, there areIn order to aid long-term performance, there are
three main criteria needed to develop a suitablethree main criteria needed to develop a suitable
culture:culture:
 it must be strategically relevant;it must be strategically relevant;
 it needs to be strong in order that people care aboutit needs to be strong in order that people care about
what is important; andwhat is important; and
 the culture must have an intrinsic ability to adapt tothe culture must have an intrinsic ability to adapt to
changing circumstances.changing circumstances.

3030
The importance of cultureThe importance of culture
 In order that leaders can develop, manage andIn order that leaders can develop, manage and
change their culture for better performance, theychange their culture for better performance, they
can use three managerial tools:can use three managerial tools:
 Recruitment and selectionRecruitment and selection – hire people who fit the– hire people who fit the
company’s culture even if this may involve overlookingcompany’s culture even if this may involve overlooking
some technical skills for a better cultural fit.some technical skills for a better cultural fit.
 Social tools and trainingSocial tools and training – develop practices that– develop practices that
enable new people to understand the values, abilities,enable new people to understand the values, abilities,
expected behaviour and social knowledge in order toexpected behaviour and social knowledge in order to
participate fully as an employee and to create strongparticipate fully as an employee and to create strong
bonds among members.bonds among members.
 Reward systemReward system – culture is an organisation’s informal– culture is an organisation’s informal
reward system but it needs to be intricately connectedreward system but it needs to be intricately connected
to formal rewards. E.g. include staff meetings whereto formal rewards. E.g. include staff meetings where
the seating arrangement is in accordance with level ofthe seating arrangement is in accordance with level of
sales.sales.

3131
National cultureNational culture
 Culture helps to account for variations amongCulture helps to account for variations among
organisations and managers, both nationally andorganisations and managers, both nationally and
internationally.internationally.
 National differences and cultural reasons raiseNational differences and cultural reasons raise
concerns about the transferability of organisationalconcerns about the transferability of organisational
structures, systems and processes and questionstructures, systems and processes and question
the logic of universal “best practice”.the logic of universal “best practice”.
 Hofstede categorise four main dimensions ofHofstede categorise four main dimensions of
national culture:national culture: power distancepower distance;; individualism vsindividualism vs
collectivism; uncertainty avoidancecollectivism; uncertainty avoidance; and; and
masculinity vs femininitymasculinity vs femininity..

3232
National culture and MCSNational culture and MCS
 Power distance (PD)Power distance (PD)
 High PD culturesHigh PD cultures are characterised by a high regard forare characterised by a high regard for
formally constituted hierarchies and an acceptance thatformally constituted hierarchies and an acceptance that
authority and responsibility for leadership and decision-authority and responsibility for leadership and decision-
making are vested at the upper-levels.making are vested at the upper-levels.
 Individualism (IDV)Individualism (IDV)
 In highlyIn highly IDV societies, people are motivated byIDV societies, people are motivated by
individual responsibility and autonomyindividual responsibility and autonomy
 In low IDV cultures, there is a collectivist rather thanIn low IDV cultures, there is a collectivist rather than
self-orientation.self-orientation.
 Individuals in low PD, high IDV cultures will seekIndividuals in low PD, high IDV cultures will seek
and respond more favourably to opportunities forand respond more favourably to opportunities for
participation in performance-setting decisions thanparticipation in performance-setting decisions than
individuals in high PD, low IDV,individuals in high PD, low IDV,

3333
National culture and MCSNational culture and MCS
 Uncertainty avoidance (UA)Uncertainty avoidance (UA)
 In high UA cultures – place greater emphasis onIn high UA cultures – place greater emphasis on
control through written rules, standardised operatingcontrol through written rules, standardised operating
procedures and formalised planning.procedures and formalised planning.
 Masculinity (MS)Masculinity (MS)
 MS is relevant to the set of performance indicatorsMS is relevant to the set of performance indicators
used in evaluation (long term vs short term).used in evaluation (long term vs short term).
 In high MS societies – greater focus on meeting shortIn high MS societies – greater focus on meeting short
term performance target, and less focus on theterm performance target, and less focus on the
development and well-being of organisationaldevelopment and well-being of organisational
members.members.
 In low MS – preferred multiple performance measuresIn low MS – preferred multiple performance measures
and less financially oriented indicators.and less financially oriented indicators.

3434
34
What is OrganizationalWhat is Organizational
Conflict?Conflict?
 The clash that occurs when the goal-The clash that occurs when the goal-
directed behavior of one group blocks ordirected behavior of one group blocks or
thwarts the goals of anotherthwarts the goals of another
 Although conflict is often perceived asAlthough conflict is often perceived as
something negative, research suggestssomething negative, research suggests
that some conflict can actually improvethat some conflict can actually improve
organizational effectivenessorganizational effectiveness
 Can overcome inertia and lead to learningCan overcome inertia and lead to learning
and changeand change

3535
35
Figure: Cooperation andFigure: Cooperation and
Competition Among OrganizationalCompetition Among Organizational
StakeholdersStakeholders

3636
36
What is OrganizationalWhat is Organizational
Conflict? (cont.)Conflict? (cont.)
 Beyond a certain point, conflict becomes aBeyond a certain point, conflict becomes a
cause for organizational declinecause for organizational decline
 Conflict leads to inability to reach consensusConflict leads to inability to reach consensus
and indecisionand indecision
 Too much time spent on bargaining rather thanToo much time spent on bargaining rather than
acting swiftly to resolve problemsacting swiftly to resolve problems
 On balance, organizations should be openOn balance, organizations should be open
to conflict and recognize its valueto conflict and recognize its value

3737
Causes of ConflictCauses of Conflict
 InterdependenceInterdependence
 Difference in goals and prioritiesDifference in goals and priorities
 Bureaucratic factorsBureaucratic factors
 Incompatible performance criteriaIncompatible performance criteria
 Competition for scarce resourcesCompetition for scarce resources

3838
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Conflict and OrganizationalConflict and Organizational
EffectivenessEffectiveness

3939
39
Managing Conflict:Managing Conflict:
Resolution StrategiesResolution Strategies
 Organizational conflict can escalateOrganizational conflict can escalate
rapidly and sour an organization’s culturerapidly and sour an organization’s culture
 Managing conflict is an important priorityManaging conflict is an important priority
 Organizations must balance the need toOrganizations must balance the need to
have some “good” conflict without letting ithave some “good” conflict without letting it
escalate into “bad” conflictescalate into “bad” conflict
 Choice of conflict-resolution methodChoice of conflict-resolution method
depends on the source of the problemdepends on the source of the problem

4040
40
Managing Conflict:Managing Conflict:
Acting at the Level ofActing at the Level of
StructureStructure
 Because task interdependence andBecause task interdependence and
differences in goals produce conflict, alterdifferences in goals produce conflict, alter
the level of differentiation and integration tothe level of differentiation and integration to
change relationshipschange relationships
 Increase the number of integrating rolesIncrease the number of integrating roles
 Assign top managers to solve conflictAssign top managers to solve conflict
 Rethink the hierarchy/reporting chain toRethink the hierarchy/reporting chain to
make sure there is no loss of controlmake sure there is no loss of control

4141
41
ManagingManaging Conflict: ActingConflict: Acting
at the Level ofat the Level of
IndividualsIndividuals
 Establish a procedural system that allowsEstablish a procedural system that allows
parties to air their grievancesparties to air their grievances
 Important for conflict between management andImportant for conflict between management and
unionsunions
 Use a third-party negotiatorUse a third-party negotiator
 Exchange/rotate/terminate individualsExchange/rotate/terminate individuals
 CEOs can also use their power to resolveCEOs can also use their power to resolve
conflicts and motivate units to cooperateconflicts and motivate units to cooperate

4242
Organisational EthicsOrganisational Ethics
 The moral values, beliefs, and rules thatThe moral values, beliefs, and rules that
establish the appropriate way forestablish the appropriate way for
organizational stakeholders to deal with oneorganizational stakeholders to deal with one
another and with the environmentanother and with the environment
 Derived from the personality and beliefs of theDerived from the personality and beliefs of the
founder and top managementfounder and top management

4343
43
Figure : Factors Influencing theFigure : Factors Influencing the
Development of OrganizationalDevelopment of Organizational
EthicsEthics

4444
Corporate Governance (CG)Corporate Governance (CG)
 A CG system can be thought of as theA CG system can be thought of as the
processes and structures used to direct aprocesses and structures used to direct a
corporation's business.corporation's business.
 A key objective of a CG system should beA key objective of a CG system should be
the enhancement of shareholder value.the enhancement of shareholder value.
 Once implemented, an effective CGOnce implemented, an effective CG
system can help to ensure an appropriatesystem can help to ensure an appropriate
division of power among shareholders, thedivision of power among shareholders, the
board of directors, and management.board of directors, and management.

4545
Corporate Governance (CG)Corporate Governance (CG)
 Professional bodies i.e MIA, CIMA develop newProfessional bodies i.e MIA, CIMA develop new
CG guideline in order to restore investorCG guideline in order to restore investor
confidence.confidence.
 E.g CMA Canada introduce "A BalancedE.g CMA Canada introduce "A Balanced
Scorecard for a Board of Directors,"to theScorecard for a Board of Directors,"to the
practice of corporate governance.practice of corporate governance.
 The BSC uses a mix of financial and non-financialThe BSC uses a mix of financial and non-financial
performance indicators that address a company'sperformance indicators that address a company's
internal processes, shareholder-value creation, quality,internal processes, shareholder-value creation, quality,
organizational learning and community relations toorganizational learning and community relations to
strengthen internal and external accountability.strengthen internal and external accountability.

4646
ConclusionConclusion
 Managing relationship in organisation is importantManaging relationship in organisation is important
in order to obtain strategic congruence.in order to obtain strategic congruence.
 A strategy must match the structure, systems,A strategy must match the structure, systems,
people and culture of the organisation.people and culture of the organisation.
 In addition, each organisational component needsIn addition, each organisational component needs
to fit with the others.to fit with the others.
 If an inconsistency exists, it is likely thatIf an inconsistency exists, it is likely that
implementation of the strategy will be affected.implementation of the strategy will be affected.

4747
End of topic 6End of topic 6

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