Chapter 3
How organisations attune (aanpassen) to the environment is an outcome of the process of strategic
management.
Strategic management= the process of careful consideration of appropriate responses to the environment
as well as maintenance of standards and development of the skills required for the inclusion of possible
changes to strategy.
Strategy= the a process that involves management determining the strategy.
For example planning.
Two different strategic management:
-Classical school strategic planning is used by an enterprise to find a balance between the recourses,
the strengths and weaknesses of the enterprise - and the opportunities and threats in the environment.
-Strategic management is strategic thinking an organization that thinks strategically is capable of
putting its vision into practice. It is argued that quantitative, analytical models are no longer adequate in
dealing with the present turbulent environment.
Process of strategic management consists of three phases:
1. Situational analysis (current vision, aims and strategy)
2. Strategy formation (determining a view of the future and various strategies and choosing a
strategy)
3. Planning and implementation (implementation of the strategy)
This process includes feedback from the planning phase and implementation in the situational analysis
phase.
First phase of strategic management is the situational analysis
Situational analysis focusses on determining the current profile of the organisation while taking into
account is external environment.
The situational analysis consist of:
-A definition of the current vision, aims and strategy.
-An internal analysis
-An external analysis
(figure book)
First phase of situational analysis aims at gaining an insight into the organization’s existing situation
defining its current situation aims and strategy.
Vision= general idea or representation of the future of the organisation and usually consists of a mission
statement and principles. (vision= mission + principles).
The vision first needs to be clear by management.
7-s module (from McKinsey) the role of vision as a management tool (uitvoeren, onderzoeken taken)
Consist of seven management factors:
1. Structure (hoe het is opgebouwd) (relates to the way elements within the organization relate to
each other)
2. Systems (information and communication systems within the organization)
3. Managerial style (characteristic behavioral patterns of the manager)
4. Staff (the way the organization pays attention to its human recourses)
5. Key skills
6. Strategies (a plan what shows what the organisation needs to do to reach goals)
1
, 7. Shared values (the vision)
This management instrument is the link and provides the direction for the remaining factors.
Vision of a manager can affect:
-By motivating employees
-By focusing the attention of the employees on relevant activities
-By creating a framework that shows employees how tasks should be done and how these tasks fit into
the bigger picture.
Principles= the norms and values of the organisation.
Aspects of an organization’s principles:
-Quality first
-Customer first
-Reliability and honesty
-Our employees are reliable and honest
-Our employees are our strength
-A focus on personal self-awareness
-We contribute to society
Organizational goals= show the relationship between the organization, environment and the employees.
Organizational goals relate to one or more of these subjects:
1. Balance of interests
2. Profitability
3. Quality
4. Effectivity and efficiency
5. Image
6. Code of conduct (disciplined working) (gedragscode)
2
,Chapter 5
Motivation= what gets u moving/ the inner readiness (gereedheid) of a person to perform certain actions.
Motivation intrinsic to the job (work-related motivation)= motivation that derives (is afgeleid) from the
work itself. People who are motivated sees their job as a challenge (work is an important part of their
life).
In Maslow’s hierarchy: fundamental needs. The need for acknowledgement and self-fulfillment
bearing (dragende) responsibility, expansion of skills and living up to performance it seem
to provide long-term stimulation.
Motivation extrinsic to the job (non-work related motivation)= motivation of this type does not derive
from the work itself. It derives from items extrinsic to the job such as work circumstances, rewards,
bonuses and status. They have a pragmatic attitude to their work. form of motivation in short term.
Maslow’s pyramid:
Alderfer’s theory (just less then Maslow’s):
-Existential needs (material security, corresponding to the psychological needs and security of Maslow)
-Rational needs (good relationships with other people, social acceptance, appreciation,
acknowledgement)
-Growth needs (personal growth and self-fulfillment and equate (komt overeen) to Maslow’s main need.
This is the same as the ERG theory (afkorting eerste letters)
Difference between Maslow’s theory and Alderfer’s theory
-Alderfer needs are not hierarchical (rangsgewijs)
-Maslow’s needs have no effective stimuli.
-Alderfer various different needs can be an operation simultaneously
New element Alderfer frustration-regression hypothesis = a need on a lower level will become more
significant (betekenisvol) if higher level needs are frustrated or not feasible.
Maslow and Alderfer assume that everyone’s needs are innate (aangeboren).
McCelland assume that needs are learnt.
McCelland identifies three needs profiles:
3
, 1. Performance need (providing a good performance, the person looks for challenges)
2. Power need (to obtain influence and control over people)
3. Affiliation (aansluiting) need (the building up of good relationships)
Process-oriented motivational theory= deals with the issue of the motivational processes of employees
and attempts to explain why these processes take the form they do. Gaining an insight into this will
enable motivation to be influenced.
Vroom’s expectancy theory:
1. Expectancy (how effort relates to performance)
2. Instrumentality (mederwerking) (how performance and reward are related)
3. Valence (the attractiveness of the reward)
This theory states that an employee is inclined to act in particular way based on the expectation
that this action will have a particular outcome. An employee will act to achieve a certain goal.
In his theory the greater the chance of good results and higher rewards.
Extent (omvang) motivation= expectancy x instrumentality x valence
Motivating people
Financial incentives is mainly affective in the short term and a higher income is not the prime motive. A
challenging job and personal development are usually more motivational. Financial incentives only keep
people on the move. Financial incentives are rewards for performance.
Forms of financial incentives:
-Bonuses (a once only payment for an agreed performance)
-Profit sharing (a payment in the form of a percentage of the obtained net profit in a certain year)
-Shares-option arrangement (payment in the form of shares. The employee has the right to buy shares
for a fixed price in the future).
To provide work-based motivation involves compiling a range of duties attuned to the needs of a specific
employee.
The tasks to be performed can be made attractive in three ways:
-Task enrichment (elements of a qualitatively higher level are added to the range of duties)
-Task enlargement=uitbreiding (elements of a qualitatively higher level are added to the range of duties)
-Task rotation (employees rotate the tasks they perform)
The theory of objectives= agreeing on specific objectives in order to improve performance. The objectives
must satisfy a number of conditions:
-The objectives should be high but realistic
-The objectives should be specified
-The objectives should be accepted by the employees
-There has to be regular feedback on progress
SMART-principle an aid (steun) that can be used to formulate objectives.
SMART-principle conditions:
-(S) Specific (the purpose must be described as concretely as possible)
-(M) Measurable (the purpose must be formulated quantitively)
-(A) Acceptable (the purpose has to be accepted by the person that have to realize the goals)
-(R) Realistic (realization of the goals should be done with an acceptable amount of effort)
-(T) Time-fixed (the goals must be reached within an agreed period)
4
How organisations attune (aanpassen) to the environment is an outcome of the process of strategic
management.
Strategic management= the process of careful consideration of appropriate responses to the environment
as well as maintenance of standards and development of the skills required for the inclusion of possible
changes to strategy.
Strategy= the a process that involves management determining the strategy.
For example planning.
Two different strategic management:
-Classical school strategic planning is used by an enterprise to find a balance between the recourses,
the strengths and weaknesses of the enterprise - and the opportunities and threats in the environment.
-Strategic management is strategic thinking an organization that thinks strategically is capable of
putting its vision into practice. It is argued that quantitative, analytical models are no longer adequate in
dealing with the present turbulent environment.
Process of strategic management consists of three phases:
1. Situational analysis (current vision, aims and strategy)
2. Strategy formation (determining a view of the future and various strategies and choosing a
strategy)
3. Planning and implementation (implementation of the strategy)
This process includes feedback from the planning phase and implementation in the situational analysis
phase.
First phase of strategic management is the situational analysis
Situational analysis focusses on determining the current profile of the organisation while taking into
account is external environment.
The situational analysis consist of:
-A definition of the current vision, aims and strategy.
-An internal analysis
-An external analysis
(figure book)
First phase of situational analysis aims at gaining an insight into the organization’s existing situation
defining its current situation aims and strategy.
Vision= general idea or representation of the future of the organisation and usually consists of a mission
statement and principles. (vision= mission + principles).
The vision first needs to be clear by management.
7-s module (from McKinsey) the role of vision as a management tool (uitvoeren, onderzoeken taken)
Consist of seven management factors:
1. Structure (hoe het is opgebouwd) (relates to the way elements within the organization relate to
each other)
2. Systems (information and communication systems within the organization)
3. Managerial style (characteristic behavioral patterns of the manager)
4. Staff (the way the organization pays attention to its human recourses)
5. Key skills
6. Strategies (a plan what shows what the organisation needs to do to reach goals)
1
, 7. Shared values (the vision)
This management instrument is the link and provides the direction for the remaining factors.
Vision of a manager can affect:
-By motivating employees
-By focusing the attention of the employees on relevant activities
-By creating a framework that shows employees how tasks should be done and how these tasks fit into
the bigger picture.
Principles= the norms and values of the organisation.
Aspects of an organization’s principles:
-Quality first
-Customer first
-Reliability and honesty
-Our employees are reliable and honest
-Our employees are our strength
-A focus on personal self-awareness
-We contribute to society
Organizational goals= show the relationship between the organization, environment and the employees.
Organizational goals relate to one or more of these subjects:
1. Balance of interests
2. Profitability
3. Quality
4. Effectivity and efficiency
5. Image
6. Code of conduct (disciplined working) (gedragscode)
2
,Chapter 5
Motivation= what gets u moving/ the inner readiness (gereedheid) of a person to perform certain actions.
Motivation intrinsic to the job (work-related motivation)= motivation that derives (is afgeleid) from the
work itself. People who are motivated sees their job as a challenge (work is an important part of their
life).
In Maslow’s hierarchy: fundamental needs. The need for acknowledgement and self-fulfillment
bearing (dragende) responsibility, expansion of skills and living up to performance it seem
to provide long-term stimulation.
Motivation extrinsic to the job (non-work related motivation)= motivation of this type does not derive
from the work itself. It derives from items extrinsic to the job such as work circumstances, rewards,
bonuses and status. They have a pragmatic attitude to their work. form of motivation in short term.
Maslow’s pyramid:
Alderfer’s theory (just less then Maslow’s):
-Existential needs (material security, corresponding to the psychological needs and security of Maslow)
-Rational needs (good relationships with other people, social acceptance, appreciation,
acknowledgement)
-Growth needs (personal growth and self-fulfillment and equate (komt overeen) to Maslow’s main need.
This is the same as the ERG theory (afkorting eerste letters)
Difference between Maslow’s theory and Alderfer’s theory
-Alderfer needs are not hierarchical (rangsgewijs)
-Maslow’s needs have no effective stimuli.
-Alderfer various different needs can be an operation simultaneously
New element Alderfer frustration-regression hypothesis = a need on a lower level will become more
significant (betekenisvol) if higher level needs are frustrated or not feasible.
Maslow and Alderfer assume that everyone’s needs are innate (aangeboren).
McCelland assume that needs are learnt.
McCelland identifies three needs profiles:
3
, 1. Performance need (providing a good performance, the person looks for challenges)
2. Power need (to obtain influence and control over people)
3. Affiliation (aansluiting) need (the building up of good relationships)
Process-oriented motivational theory= deals with the issue of the motivational processes of employees
and attempts to explain why these processes take the form they do. Gaining an insight into this will
enable motivation to be influenced.
Vroom’s expectancy theory:
1. Expectancy (how effort relates to performance)
2. Instrumentality (mederwerking) (how performance and reward are related)
3. Valence (the attractiveness of the reward)
This theory states that an employee is inclined to act in particular way based on the expectation
that this action will have a particular outcome. An employee will act to achieve a certain goal.
In his theory the greater the chance of good results and higher rewards.
Extent (omvang) motivation= expectancy x instrumentality x valence
Motivating people
Financial incentives is mainly affective in the short term and a higher income is not the prime motive. A
challenging job and personal development are usually more motivational. Financial incentives only keep
people on the move. Financial incentives are rewards for performance.
Forms of financial incentives:
-Bonuses (a once only payment for an agreed performance)
-Profit sharing (a payment in the form of a percentage of the obtained net profit in a certain year)
-Shares-option arrangement (payment in the form of shares. The employee has the right to buy shares
for a fixed price in the future).
To provide work-based motivation involves compiling a range of duties attuned to the needs of a specific
employee.
The tasks to be performed can be made attractive in three ways:
-Task enrichment (elements of a qualitatively higher level are added to the range of duties)
-Task enlargement=uitbreiding (elements of a qualitatively higher level are added to the range of duties)
-Task rotation (employees rotate the tasks they perform)
The theory of objectives= agreeing on specific objectives in order to improve performance. The objectives
must satisfy a number of conditions:
-The objectives should be high but realistic
-The objectives should be specified
-The objectives should be accepted by the employees
-There has to be regular feedback on progress
SMART-principle an aid (steun) that can be used to formulate objectives.
SMART-principle conditions:
-(S) Specific (the purpose must be described as concretely as possible)
-(M) Measurable (the purpose must be formulated quantitively)
-(A) Acceptable (the purpose has to be accepted by the person that have to realize the goals)
-(R) Realistic (realization of the goals should be done with an acceptable amount of effort)
-(T) Time-fixed (the goals must be reached within an agreed period)
4
