Detailed Notes for Unit 3: Teams

1. Definition of Teams

 A team is a group of individuals who:

o Work collaboratively to achieve a common goal.

o Have interdependent tasks and rely on each other’s expertise.

o Share accountability for outcomes.

2. Characteristics of Effective Teams

1. Clear Purpose and Goals:

o Members understand and are committed to the team's purpose.

o Goals are specific, measurable, achievable, relevant, and time-bound (SMART).

2. Open Communication:

o Team members freely share ideas and feedback.

o Active listening is practiced.

3. Defined Roles and Responsibilities:

o Each member has a distinct role that aligns with their skills.

o Overlapping responsibilities are minimized to avoid conflicts.

4. Strong Leadership:

o Leaders guide the team and foster a supportive environment.

 o Leadership may be shared among team members in certain contexts.

5. High Interdependence:

o Tasks are interconnected, requiring collaboration.

6. Trust and Mutual Respect:

o Team members trust each other’s capabilities.

o Differences are respected and valued.

3. Types of Teams

1. Problem-Solving Teams:

o Focus on resolving specific issues or improving processes.

o Typically temporary and disband after the problem is solved.

2. Self-Managed Teams:

o Operate without a direct manager.

o Members handle planning, scheduling, and decision-making autonomously.

3. Cross-Functional Teams:

o Comprise individuals from different departments or areas.

o Enhance innovation by integrating diverse perspectives.

4. Virtual Teams:

o Operate across geographical locations using technology.

o Require strong communication tools and trust among members.

4. Stages of Team Development

1. Forming:

o Team members are introduced and explore their roles.

o Focus on building relationships and understanding the purpose.

2. Storming:

o Conflicts and differences may arise as members assert their opinions.

o Leadership and roles become clearer.

3. Norming:

o The team establishes norms and resolves conflicts.

o Collaboration and cohesion improve.

4. Performing:

o The team functions efficiently towards achieving its goals.

o High productivity and minimal conflicts are observed.

5. Adjourning:

o The team disbands after achieving its objectives.

o Reflection and feedback sessions may occur.

5. Team Dynamics

1. Team Roles:

o Task Roles: Ensure the team accomplishes its objectives (e.g., coordinator,

initiator).
 o Maintenance Roles: Focus on team cohesion and morale (e.g., encourager,

harmonizer).

o Individual Roles: Personal interests that may hinder team performance (e.g.,

dominator, blocker).

2. Groupthink:

o A phenomenon where the desire for consensus leads to poor decision-making.

o Mitigation: Encourage diverse viewpoints and critical evaluations.

3. Conflict Management:

o Conflicts may arise from personality clashes, resource allocation, or task

disagreements.

o Approaches:

 Collaboration (win-win).

 Compromise (give and take).

 Avoidance (temporary halt).

6. Benefits of Teams

 Increased Productivity: Teams can achieve more collectively than individuals.

 Diverse Perspectives: Members contribute varied ideas and solutions.

 Faster Problem-Solving: Collaboration accelerates issue resolution.

 Enhanced Learning: Team members learn from each other’s experiences.

7. Challenges of Teams

 Coordination Costs: Effort required to organize and synchronize members.

 Social Loafing: Some members contribute less, relying on others to complete tasks.

 Conflict: Disagreements can disrupt team performance.

 Decision-Making Delays: Group decisions may take longer than individual ones.
Detailed Notes for Unit 4: Communication

1. Definition and Importance of Communication

 Communication: The process of transferring and understanding meaning from one

person to another.

 Importance:

o Facilitates coordination and collaboration.

o Motivates employees by providing clarity and feedback.

o Serves as a medium for emotional expression and social interaction.

o Provides the foundation for informed decision-making cation

 Process: The communication process includes seven key components:

1. Source: The initiator of the communication.

2. Encoding: Converting the message into a format that can be understood (e.g., words,

symbols).

3. Message: The content being communicated.

4. Channel: The medium used to transmit the message (e.g., oral, written).

5. Decoding: The receiver interprets the message.

6. Receiver: The person or group for whom the message is intended.

7. Feedback: Verifying the understanding of the message through responses

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Flow of Organizational Communication

1. Downward

o Flows from higher management to lower levels (superiors to subordinates).

o Used to give instructions, provide feedback, communicate company goals, and

clarify job roles.

o Ensures employees understand their roles/tasks and how they align with company

objectives.

2. Upward

o Flows from employees to higher management.

o Employees use it to provide feedback, share ideas, report problems, or convey

their understanding of instructions.

o Helps management stay informed about employee concerns and organizational

performance.

3. Horizontal/Lateral

o Occurs between employees or managers at the same hierarchical level.

o Facilitates collaboration, coordination of tasks, problem-solving, and social

support.

o Improves efficiency by reducing time spent on decision-making and resolving

conflicts within or between departments.

4. Diagonal
 o Crosses department and hierarchical boundaries.

o Facilitated by technology like emails, allowing communication between different

levels and departments without following traditional lines of hierarchy.

o Speeds up processes and boosts efficiency but requires managers to stay

informed.

Methods of Communication

1. Formal

o Follows official channels and protocols within an organization.

o Example: A manager sending an email to the entire department about a staff room

upgrade.

2. Informal

o Occurs without formal channels, often spontaneous.

o Example: A chat in the staff lounge between colleagues about an upcoming

project.

3. Verbal

o Involves spoken words, in person, or through media like calls.

o Example: A team leader explaining a task to a colleague face-to-face or over the

phone.

4. Non-Verbal

o Involves body language, gestures, facial expressions, and tone without spoken

words.
 o Example: A manager nodding in agreement during a meeting or crossing arms

and frowning during a conversation, signaling discomfort or disagreements.

5. Diagonal Communication

o Crosses both functional and hierarchical boundaries, often more direct.

o Example: A sales agent emailing the finance director directly to resolve a client’s

billing issue, bypassing typical hierarchical steps for efficiency.

Detailed Notes for Unit 4: Communication; MIS

A management information system (MIS) is a computer-based system that provides the

information necessary to manage an organization effectively. An MIS should be designed to

enhance communication among employees, provide an objective system for recording

information and support the organization's strategic goals and direction. There are four (4) types

of MIS.

Types of Management Information Systems

1. Transaction-Processing Systems

A transaction-processing system is a system designed to handle large volumes of routine,

recurring or basic day-to-day business transactions. In transactional processing, data are received

about a company’s ongoing operations and entered into data banks as each transaction occurs.

They were first introduced in the 1960s with the advent of mainframe computers. Transaction

processing systems are used widely today. Banks use them to record deposits and payments into

accounts. Retailers use them to record sales and track inventory. These systems control payroll,
customer billing and payments to suppliers. Taking customer orders from on-line retailers,

approvals of claims at insurance companies, receiving and confirming reservations by airlines

are all examples of TPS

2. Operation information System

These systems were introduced after transaction processing systems. An operations information

system gathers comprehensive data, organizes it and summarizes it in a form that is useful for

managers. Most of these systems access data from a transaction processing system and organize

it into a form usable by managers. Managers use operations information systems to obtain sales,

inventory, accounting and other performance-related information.

3. Decision Support Systems

A DSS is an interactive computer system that provides senior managers with the necessary

information to make intelligent decisions. It uses decision models and specialized databases to

help managers make better non-programmed decisions.

DSS had three primary functions:

1. a database management system, which stores large volumes of data

2. a model-based management system that transforms information used for decision making,

3. a dialog generation and management system, which has a user-friendly formation so

employees without vast computer knowledge can use it.

4. Expert Systems and Artificial Intelligence

These systems use human knowledge captured in a computer to solve problems that ordinarily

need human expertise. Mimicking human expertise and intelligence requires that the computer

(1) recognize, formulate and solve a problem; (2) explain solutions and (3) learn from

experience. These systems explain the logic of their advice to the user; hence, in addition to

solving problems they can also serve as a teacher. They use flexible thinking processes and can

accommodate new knowledge.

Benefits of MIS

1. Such systems allow managers to stay in touch with other managers and subordinates.

2. It can aid managers when planning

3. It can be used to network with other organizations and stakeholders such as customers

4. It can be used to store data or for record keeping.

5. It can be used as a backup to data stored elsewhere.

6. There are costs and time savings in accessing information, central distribution of information,

cheaper communication and document circulation (deduction in paper, postage and fax costs)

and reduced human resource needs (a messenger, clerical or typist)

Detailed Notes for Unit 5: Decision Making

A decision is a judgment. It is a choice between alternatives. It is rarely a choice between right

and wrong. It is at best a choice between “almost right” and “probably wrong”. - Drucker.

The process of identifying problems and opportunities and then resolving them. Requires effort

before and after choice.

Steps in Decision-Making Process

1. Identify the Decision

o Clearly define the problem or decision to be made.

o Ask, "What exactly is the issue or choice to address?"

2. Gather Relevant Information

o Collect internal data (organization records, past experiences).

 o Use external data (market trends, competitor analysis) to support the decision-

making process.

3. Identify Alternatives

o Brainstorm and list all possible solutions or courses of action.

o Ensure no potential option is overlooked during this phase.

4. Weigh the Evidence

o Compare alternatives based on established criteria (e.g., cost, time, resources).

o Assess risks and benefits associated with each alternative.

5. Choose Among Alternatives

o Select the best option based on evidence and alignment with goals.

o Prioritize the option that meets the majority of decision criteria effectively.

6. Take Action

o Implement the chosen solution.

o Ensure all stakeholders are informed and resources are allocated effectively.

7. Review Decision and Consequences

o Evaluate the outcomes of the decision.

o Determine whether the problem has been resolved or if further action is required.

Types of Decisions

1. Programmed

o Routine, structured decisions that are made frequently and follow established

policies and procedures.

o Example: expense reports, college admissions decisions

 o pricing standard customer orders, determining billing dates, recording office

supplies etc.

2. Non-Programmed (use the 7 steps to decide)

o Unique, unstructured decisions that require customized solutions.

o Example: which area of business to expand, choice of colleges to apply for

admission.

Characteristics Programmed decisions Non-programmed

decisions

Type of problem Structured Unstructured

Managerial level Lower level Upper level

Frequency Repetitive New, unusual

Information Readily available Ambiguous or incomplete

Time frame for solution Short Relatively long

Solution relies on Procedures, rules, and Judgment and creativity

policies

Decision-Making Environments/Conditions
 1. Certainty

o The outcomes of every alternative are known.

o Example: A company knows exactly how much money will be saved if it adopts a

new cost-cutting initiative.

2. Risk (some sort of knowledge)

o The outcomes and probabilities can be assessed.

o Example: Investing in a new product development project where market success

depends on consumer demand.

3. Uncertainty (lack of knowledge)

o The outcomes of each alternative are unclear, and it’s impossible to predict

outcomes reliably.

o Example: Entering a new foreign market where there’s no historical data on

customer behaviour or competition.

Decision-Making Techniques

1. Bounded Rationality (Herbert A. Simon)

o Managers make decisions within the limits of their information, cognitive

abilities, and time constraints.

o They aim for a satisfactory solution rather than an optimal one.

o Example: Choosing a vendor that fits a tight deadline based on limited available

data.
 2. Satisficing (Herbert A. Simon)

o Managers accept a solution that is "good enough" rather than spending additional

resources to find the best possible solution.

o Example: A company selects a software provider that meets the minimum

requirements, even if it's not the top-rated option.

3. Nominal Group

o A decision-making method where participants individually write down ideas,

which are then discussed and ranked.

Decision-Making Tools

 Decision Tree:

o A visual representation of possible decisions and their likely outcomes. It helps

managers analyze various options by considering their risks and rewards.

o Example: A company can use a decision tree to evaluate whether to launch a new

product based on potential market size and costs.

o
 Critical Path Method (CPM):

o A project management tool used to identify the sequence of crucial tasks that

determine the minimum project completion time.

o Example: A construction firm uses CPM to ensure building a project is

completed on time by focusing on key milestones.

 Program Evaluation and Review Technique (PERT):

o A project management tool used to estimate the time required to complete each

project activity and identify the longest path.

o Example: NASA uses PERT to manage complex space missions with multiple

interdependent tasks.

 Gantt Chart:

o A type of bar chart that visualizes a project schedule, showing start and finish

dates for each task.

o Example: A marketing campaign manager uses a Gantt chart to track the timeline

of promotional activities.
Two Models of Decision-Making

1. Classical Model (Rational Model)

One of the earliest models of decision making, the classical model, is prescriptive, which means

that it specifies how decisions should be made. Managers using the classical model make a series

of simplifying assumptions about the nature of the decision-making process.

 Overview:

o A prescriptive model outlining how decisions should ideally be made to achieve

optimal results.

o Assumes that decision-makers have access to all necessary information and can

act logically to maximize outcomes.

 Key Assumptions:

1. The decision-maker operates to accomplish clearly defined goals.

2. All possible alternatives and their consequences are known.

 3. Preferences among alternatives are clear and can be ranked.

4. The decision-maker is rational and uses logic to make choices that maximize

economic returns

 Characteristics:

o Logical and systematic approach.

o Suitable for programmed decisions (structured and repetitive tasks).

o Focuses on optimal solutions.

2. Administrative Model (Behavioural Model)

 Overview:

o Developed by James March and Herbert Simon to explain real-world decision-

making under constraints.

o More descriptive, focusing on how decisions are actually made in complex and

uncertain environments.

 Key Concepts:

1. Bounded Rationality:

 Human cognitive limitations restrict rationality.

 Decision-makers simplify problems and focus on essential elements

2. Incomplete Information:

 Decisions are made with partial knowledge due to risk, uncertainty, and

ambiguity


 3. Satisficing:

 Instead of finding the optimal solution, decision-makers select the first "good enough"

option that meets minimum criteria.

 Characteristics:

o Realistic and practical, addressing limitations of time, information, and cognitive

ability.

o Suitable for non-programmed decisions (unique, complex, and unstructured

issues).

These models highlight different approaches to decision-making, with the classical model

emphasizing optimal solutions under ideal conditions and the administrative model addressing

real-world constraints and behavioural limitations.

Detailed Notes for Unit 6: Business Ethics & Corporate Social Responsibility

Business Ethics / Corporate: Involves the application of moral principles and standards to

business activities and decisions.

Ethics: Principles, values, and beliefs that define what is right and wrong.

Fraudulent Examples - Companies acting unethically (e.g., Enron, EMROD).

Importance of Good Ethics

 Builds a good reputation.

 Guides decisions in complex situations.

 Builds trust with stakeholders.

Examples

 Employees are comfortable with their ethical practices.

 Consumers are at ease with the company because the company’s material source is

ethical.

 Implement fair labour practices, even if their labour is cheaper elsewhere.

The Four Views of Ethics

1. Utilitarian

o Promotes one’s long-term self-interest.

o Greatest good is provided for the greatest number.

o Encourages efficiency and productivity, consistent with the goal of profit

maximization.

2. Rights

o Based on the fundamental rights of all human beings.

o Respecting and protecting individual liberties and privileges.

o Protects individual rights (e.g., conscience, free speech, safety).

3. The Theory of Justice

o Organizational rules are enforced fairly and impartially.

o Protects the interests of underrepresented stakeholders and employees.

4. Integrative Social Contract Theory

o Ethical decisions should be based on existing ethical norms in industries and

communities.

o Based on the integration of the general social contract and the specific contract

between community members.

Corporate Social Responsibility (CSR): “A business obligation beyond that required by law

and economics to pursue long-term goals that are good for society." Robbins, et al, 2006, P.96
Views

1. The Classic View

o Maximize profits for the benefit of stakeholders.

o Doing "social good" unjustifiably increases costs.

o Example: Giving back to society, building a good reputation, tax returns.

2. The Socio-Economic View

o Management should also protect and improve society’s welfare.

o Corporations are responsible not only to stakeholders but to society at large.

o Firms have a moral responsibility to do the right thing.

Types of Social Responsibility (Archie Carroll)

1. Economic- The foundational role of businesses is to produce goods and services and

maximize profits, reflecting Milton Friedman’s view that profit is a company’s main

responsibility.

2. Legal- Companies must comply with legal standards and societal regulations.

3. Ethical- Beyond legal compliance, companies should act with fairness and respect for

stakeholders.

4. Philanthropic (Discretionary)- Voluntary contributions to the community, such as

charitable donations or employee volunteer programs.

CSR in a Globalized Environment

Neglecting Corporate Social Responsibility (CSR) and ethical practices can have severe global

consequences, such as environmental degradation, exploitation in developing countries, and

hindering economic and social progress. Companies that fail to minimize their carbon footprint,

dispose of waste responsibly, or support sustainability damage the planet and future generations.

Exploitation of cheap labour or unfair market domination by large companies harms developing

countries and creates long-term economic and social setbacks. Businesses should avoid

partnerships with unethical companies to encourage accountability, leading to positive change

and a cycle of continuous improvement. Government intervention is essential in enforcing

ethical practices where individuals or industries fail to do so. Additionally, businesses should

actively contribute to community development, invest in sustainability, and support initiatives

like renewable energy and education, fostering higher ethical standards globally.

Importance of CSR

CSR is vital for building trust and ensuring long-term business success. Companies must think

beyond immediate needs and anticipate future challenges, including social, environmental, and

governance issues. Establishing trust with customers, communities, and regulators requires

addressing these concerns proactively to maintain credibility and adapt to societal and

technological changes.
The Importance of Business Ethics in Organizations

1. Enhances Organizational Integrity:

o Business ethics provide a framework for making morally sound decisions.

o Promotes transparency, accountability, and trust within the organization.

2. Builds Customer Trust and Loyalty:

o Ethical practices attract and retain customers who value integrity.

o Consumers are increasingly aware of unethical behavior and choose businesses

aligned with their values.

3. Attracts and Retains Talent:

o Employees prefer to work for organizations that uphold ethical standards.

o An ethical work environment fosters motivation, engagement, and long-term

commitment.

4. Risk Mitigation:

o Ethical organizations are less likely to face legal issues or reputational damage.

o Prevents conflicts arising from fraudulent practices, discrimination, or safety

violations.

5. Improves Decision-Making:

o Provides a clear ethical framework for addressing dilemmas and conflicts.

o Ensures decisions align with organizational values and long-term goals.

The Importance of Business Ethics in a Globalized Environment

1. Maintains Consistency Across Borders:

o Global operations require consistent ethical practices to uphold brand integrity.

o Ensures that local practices do not compromise organizational ethics.

2. Navigates Cultural Diversity:

o Globalized environments involve diverse cultural norms and values.

o Ethical frameworks help reconcile conflicting practices while respecting local

traditions.

3. Enhances Global Reputation:

o Ethical businesses are perceived positively in international markets.

o Strengthens partnerships and opens opportunities for global expansion.

4. Mitigates Risks in Emerging Markets:

o Helps navigate corruption, labour exploitation, and environmental issues

prevalent in some regions.

o Establishes trust with local stakeholders and communities.

5. Aligns with International Standards:

o Complies with global ethical standards such as UN Sustainable Development

Goals and corporate governance codes.

o Reduces exposure to sanctions or regulatory penalties.

Critique of Cases Related to Social Responsibility and Business Ethics

Case 1: Nike’s Sweatshop Allegations

 Summary:

o Nike faced criticism for poor labour conditions in supplier factories in developing

countries.

 Critique:

o Neglecting social responsibility led to significant reputational damage.

o Nike's subsequent implementation of ethical supply chain practices highlights the

necessity of proactive CSR measures.

Case 2: Volkswagen Emissions Scandal

 Summary:

o Volkswagen falsified emissions data to pass regulatory tests.

 Critique:

o Short-term profit motives compromised ethical standards, leading to severe

financial and reputational losses.

o Demonstrates the critical need for internal controls and accountability.

Case 3: Patagonia’s Environmental Commitment

 Summary:

o Patagonia integrates sustainability into its business model, prioritizing eco-

friendly practices.
  Critique:

o A positive example of aligning profit with social responsibility.

o Proves that ethical behaviour can drive long-term brand loyalty and profitability.

Case 4: Enron Scandal

 Summary:

o Enron executives manipulated financial reports to hide losses, resulting in the

company's collapse.

 Critique:

o Lack of ethics in leadership undermined trust and highlighted the importance of

corporate governance and transparency.

Theories of Social Responsibility

4. Archie Carroll’s Corporate Social Performance (CSP)