benv - internal env

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Business Environment ABUS001-3-1 Internal Environment

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Page 1: benv - Internal Env

Business EnvironmentABUS001-3-1

Internal Environment

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Title of Slides

Topics & Structure of Lesson

Internal Environment• People – skills and ability• Resources• Management

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Learning Outcomes

At the end of this lesson, you should:

Understand the concepts in basic internal environment issues which includes ;• Employees –skills and ability• Limited resources – technical and

finance• Management –style

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People (Employees):- The nature of the work force is changing in

most organisations, partly because of demographic factors.

- At the same time, the skills needed by employees are changing.

Employees

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People (Employees) cont..:- As companies find it necessary to

experiment with quality programs, team approaches, and self-managed work groups, they need employees who are better educated and more flexible.

Employees

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People (Employees) cont..:

• Employees need to upgrade their skills and ability.

• For a skilled employee can transform both corporate and personal experiences into knowledge through capturing, assessing, applying, sharing it within his/her organisation to solve specific problems or to create value

Employees

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People (Employees) cont..:The benefits of skilled employees would include:

• Thinking skills — having a vision how the product/service or the company can be better

• Continuous learning — unlearning and relearning in tune with fast-changing conditions

Employees

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The benefits of skilled employees would include (cont) :

• Innovative teams and teamwork — via collaboration, cooperation, and coordination

• Creativity — ”dreaming” new ways to advance the firm.

Employees

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Employees

Reasons for change:- - All organisations need to be aware of

changes, which are often connected with new products, new developments, new design.

- Examples of these in relatively recent years are computers, hand phones and DVD players.

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Employees

Resistance to change:- - As we can understand the need to change, but we also need to understand why people resist to change.- This resistance is not unreasonable or irrational, but is a quite natural response to a proposed move from the known to the unknown, from the secure to the feared “insecure”.

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Employees

Resistance to change (cont.):- The thoughts and concerns that usually run through the employee’s mind are: - How will this change effect me? - Is my job secure? - Will I lose my status and my subordinates? - How will I cope with it? - Will I be able to learn to adapt? - Will the hours of work change?

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Employees

Suggestion to overcome resistance to change:- - The first stage should be to attempt to prevent rumors. The key to this is to get in first with information to the staff which is as full as it can be at each stage of change. - Certain changes could be introduced in stage or a six-month trial period.

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Employees

Overcoming resistance to change (cont.):- - Employees should listen to grievances and to the opinions of the staff – should encourage two-way communication.

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Management

- What makes a good leader or manager? - For many it is someone who can inspire

and get the most from their staff. - Manager's challenge: do more with less

in the midst of continual change (while the ground is moving).

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Management

Management defined: The process used to accomplish

organisational goals through planning, organising, leading, and controlling (POLC) people and other organisational resources

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Management

There are many qualities that are needed to be a good leader or manager.– Be able to think creatively to provide a vision for the

company and solve problems– Be calm under pressure and make clear decisions – Possess excellent two-way communication skills– Have the desire to achieve great things– Be well informed and knowledgeable about matters

relating to the business– Possess an air of authority

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Management

There are three main categories of leadership styles:

1) autocratic, 2) paternalistic and 3) democratic.

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Management

1) Autocratic (or authoritarian) – Managers like to make all the important

decisions and closely supervise and control workers.

Managers do not trust workers and simply give orders (one-way communication) that they expect to be obeyed.

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Management

2) Paternalistic – Managers give more attention to the social needs and views of their workers. Managers are interested in how happy workers feel and in many ways they act as a father figure (pater means father in Latin).

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Management

2) Paternalistic (cont.) – They consult employees over issues and

listen to their feedback or opinions. The manager will however make the actual

decisions (in the best interests of the workers) as they believe the staff still need direction and in this way it is still somewhat of an autocratic approach.

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Management

3) A democratic- Style of management will put trust in

employees and encourage them to make decisions.

They will delegate to them the authority to do this (empowerment) and listen to their advice.

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Management

3) A democratic (cont.) - This requires good two-way communication

and often involves democratic discussion groups, which can offer useful suggestions and ideas.

Managers must be willing to encourage leadership skills in subordinates.

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Resources

Finance – The function in a business that acquires funds for the firm and manages funds within the firm.

Due to limited financial resources – a firm need to carefully calculated financial plan.

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Resources

Financial aspect in an organisationincludes: - Planning - Budgeting - Obtaining funds - Controlling funds - Collecting funds

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Resources

Technical resources in an organisationincludes: - Scientific research expertise; - Product innovation capability; - Expertise in a given technology; - Capability to use Internet to conduct various business activities

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Q & A

Question and Answer Session

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Next Lesson

- Revision :