Learning outcomes After studying this unit you should be able to: appreciate the characteristics of consultancy when viewed as a service offered for sale; as client, identify suitable contexts for using consultants; as client, identify, gather information on, and evaluate the suitability of competing consultants.
1.6 Equity buybacks, de-listing and reversion to a ‘private’ company Once its shares have been issued, a company has the option to buy back shares. Buybacks will occur if the company believes that it is overcapitalised and cannot generate a sufficiently high return on capital through its operations. Under these circumstances it is effectively saying to the investor ‘thanks but please now have some of your money back – you can probably make it work harder elsewhere’. A further reason for buybacks arises when a major capital restructuring is undertaken by
1.1 Definitions The need for corporate governance arises out of the divorce in modern corporations between the rights of shareholders and other suppliers of capital on the one hand, and the operational control, which is in the hands of professional managers, on the other. This can be described as the ‘principal–agent’ problem. Put simply, the question is: will the managers run the corporation exclusively for the long-term benefit of the shareholders, and what mechanisms can be put in place to ensure th
Conclusion We hope this unit has set you thinking about how you and others make decisions. It has been a very brief and to some extent shallow introduction to some quite complex ideas. The reference list should give you some pointers to further resources which will help you explore this topic in greater depth. Before you move on take some time for a final activity. Activity 3 In Author(s):
6.1 Introduction An important aspect of decision making which crosses all three perspectives is making decisions about risks. Risk is all-pervasive in organisational life and many decisions require us to weigh up and choose between different kinds of risk. Thus any account of decision making would be incomplete without examining how our perceptions of risk affect our decisions. In this section we will examine risk from the three different perspectives we have identified: rational-economic, psychological and s
5.5.1 Coercive pressures
Coercive pressures come from the social sanctions that can be applied if we do not act in socially legitimate ways. The law is one source of coercive pressure, but so too is the knowledge that you will get promoted only if you act in ways which fit accepted ways of doing things in your organisation.
4.6 Post-decision evaluation For most normally functioning people, maintaining self-esteem is an important internal goal. This can cause us to filter out or discount information that might show us in an unfavourable light. This is what lies behind the fundamental attribution bias. This is the tendency to attribute good outcomes to our own actions and bad outcomes to factors outside our control. While such defences against loss of self-esteem can be helpful to the extent that they help us persist in the face of adv
1 Barriers to a strategic view Marketing communications is not always accepted as having strategic importance in organisations. This unit examines some of the reasons for this, before exploring some recent arguments in favour of a strategic role for marketing communications. One reason for seeing marketing communications as tactical rather than strategic is that much of its development and execution has been outsourced to marketing services agencies offering a range of specialisms (such as design, creative consultanc
1.2 The relationship between stakeholders and the organisation Public and voluntary sector organisations do not have the same shareholder obligations as those in the private sector. However, as the distinction between public and private sector organisations becomes blurred, there are concerns that the ethical role of public service organisations – defined as acting in the public interest through a public service ethos – is being undermined. As public service and non-profit organisations are increasingly expected to achieve targets and become more ‘
3.2 CSR reporting We mentioned earlier three reasons for environmentally friendly behaviour, effectively deriving from personally held values, niche marketing or regulatory pressure. To a large extent the same holds true for ethical behaviour. Some organisations have a long tradition of good citizenship, ranging from the UK social housing of Bourneville or Port Sunlight, through to community involvement schemes from such as Xerox and IBM. Financial sponsorship of good causes, whether that be artistic end
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2 Entrepreneurial qualities It is now widely accepted that, apart from the start up phase, most small firms in Europe are more concerned about survival rather than growth and relatively few are especially entrepreneurial (Gray 1998). Consequently, a lot of research in this field has focused on finding the characteristics that set entrepreneurs and their firms apart from others. Elizabeth Chell (1985, 1999), a social psychologist, has examined numerous psychological trait-based approaches and concluded that, whilst psych
Learning outcomes After studying this unit you should: understand the nature of entrepreneurship; understand the function of the entrepreneur in the successful, commercial application of innovations; confirm your entrepreneurial business idea; identify personal attributes that enable best use of entrepreneurial opportunities; explore entrepreneurial leadership and management style; identify the requirements for building an
2.2 Closure tasks The closing stages of a project need as much, if not more, attention as the early stages. Many of the final tasks in a project may seem rather tedious ‘housekeeping’ once the project's main purpose has been achieved. Nevertheless, there are a number of actions that must be taken to close the project and ensure that any necessary maintenance arrangements have been made. Make sure that all project staff actually stop work on the project.
5.2 Using political skills In particular, a project manager needs to employ good political skills in order to maintain the support of senior management, without allowing them to undermine or take over the project. However, this can raise questions about the ethics of their behaviour. Read the following account that was given by a member of an external consulting team working on a project for a local authority in Scotland. The project's objective was to revamp the structure of the council which had operated in much the
4.2 Assessing the strengths and weaknesses of a project team Those involved in a project may have skills that fulfil more than one aspect of the project agenda. This is likely to be particularly important in small-scale projects, where management of the content, process and control agendas are just as important to the project's success, but where fewer people are involved. Introduction The aim of Managing Projects through People is to demonstrate the importance of managing people for the success of a project, to identify groups and individuals whose appropriate involvement in a project is important for its success, and to consider ways in which their contribution might be maximised. This material is from our archive and is an adapted extract from Fundamentals of Senior Management (B713) which is no longer taught by The Open University. If you want to study form 4 Project inputs and outputs A project involves the transformation of inputs into an output or product. For example, people's mental and physical efforts, bricks and mortar, equipment or materials might be transformed into a new road, a municipal park or an advertising campaign. Or perhaps transformed into a stream of outputs or products, for example, attendances at a conference or exhibition, state school places or data from a new in-house costing system. The output or outputs might be used within the organisation 3.2.1 To draw a mind-map (manually) Put your paper (ideally a large sheet) in landscape format and write a brief title for the overall topic in the middle of the page. For each major sub-topic or cluster of material, start a new major branch from the central topic, and label it. Each sub-sub-topic or sub-cluster forms a subsidiary branch to the appropriate main branch. Continue in this way for ever finer sub-branches. You may References
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