MBO All
MBO All
QUESTION: 19
a) What do you understand by budgetary control? Describe the HRM budgetary
control methods in business organizations.
b) Explain the non- budgetary control methods in business organizations.
Budget is an estimation of revenue and expenses over a specified future period of time and
is usually compiled and re-evaluated on periodic basis. A budget can be made by an
individual, group of people, organization and a government on the money expenditure
(Ganti A. 2008)
Budgetary control
Budgetary Control is basically a technique where the actual results, actual revenues
and expenses are compared with the budget planned before the start of the financial
year. It highlights the need for adjustment of the performance, if required. It also
shows how well the managers have controlled costs and operations in an accounting
period. It analyses the budget after its implementation to know major deviations.
For the purpose of budgetary control, various are methods used which are briefly
explained as follows
Variance Analysis. In these methods, Budget is prepared for each and every
department. Further, a comparison is made between the actual and estimated
accounting figures. With the help of this technique, variances are found. The
variances are further divided into Favorable and Unfavorable Variances. For
instance, the difference between actual production cost and estimated production
cost will be denoted by production variance. This technique helps in reducing
cost and is commonly used for budgetary control.
Responsibility Accounting, It is considered to be a good method for budgetary
control. In this, three centers namely Cost Centre, Profit Centre and Investment
Centre are created. All these centers are like the department of the organization and
employees are classified on the basis of these centers.The performance of the
employees in manually recorded and their accountability is fixed regarding certain
goals that might be quantitative or qualitative. This technique helps to take decision
regarding promotion or demotion based on employee’s performance.
Adjustment of funds, under this method, Top management takes decisions
regarding adjustment of funds from one project to another. For instance, if a new
project started by an organization needs money and there is surplus money
allocated to an already existing project, then the surplus funds can be adjusted
against new project for its initial setup. This method facilitates proper allocation and
adjustment of funds and prevents misuse.
Zero Based Budgeting, Another method which is very popular these days is zero
based budgeting. Under this method, budget of next year is considered as nil which
can be only possible if estimated revenue is equal to estimated expenses. At that
time, difference between estimated revenue and estimated expenses will be zero.
Any excess amount of money will be adjusted. This method helps in having control
over each and every amount of money spent during the year.
REFFERENCES
Brown and Howard. (2000). Balanced Wealth Management. London: East Greenwich.
John F and John W. (1993). Budgetary Management and Control. The Public Sector in
Australia. Sydney: Macmillan Education Au.
THE MWALIMU NYERERE MEMORIAL ACCADEMY
QUESTIONS ONE:
What do you understanding by proactive and reactive changes? Imagine your head of HRM in particular
business organization. Advice your Managing Director (MB) on the essential area that require frequently
changes do as to make organization updated.
According to William, Chuck, believes that transition is more complex because it requires
abandoning old practices and adopting new behaviour or ways thinking wheres planned
changes is about changing physical location or organization structure.
According to Nadler, David, Michael L. Tushman, and Mark B. Nadler (1997), is the present
model the dynamics what's occurs in an organization when to try to change.
According to Carnall, C.A, is the focused on managers and the skills they can use to
manage change.
And also it is necessary to understand the meaning of HRM officer is the person who
responsible for managing every aspect of the employment including Orientation and
training new staff members as well as resources in the organization.
And also to understand the meaning of Managing Director is the person who chief
executive or is the senior full time executive of the organization.
As head of HRM officer in particular business organization I advice Managing Director on the
essential area that require frequently changes so as to make organization update as follows:
He/she should improve technology in the organization. As human resource officer I advice
Managing Director to improve technology in order to enhance the efficiency and effective at
the workplace. Forexample to vacate using the old technology system like manual system of
payment, old equipments such as desktop and to use modern technology system like payroll
system through lawson as well as modern equipment such as scanner, Laptop and
fingerprint. If Managing Director follow the advice his/her organization will increase the
production high quality and quantity. Hence must be updated organization system.
He/she should ensure that there is better security system in the organization. As a human
resource officer I advice Managing Director to advance good security system to protect the
safety in organization. Forexample installation of closed circuit television(CCTV), Fingerprint
machine and intruder Alarm. Hence Managing Director is supposed to improve and
implement the security system that leads the organization to be in safe and secured.
He/she should initiate good motivation policy in the organization. As a human resource
officer I advice the Managing Director to create the better motivation policy in order to
increase the efficiency and effective of the work in the organization. Forexample bonus,
promotion, training and development, holiday package, overtime bonus and also
improvement of salary or wages. Automatically it leads the Managing Director to achieve
his/her goals because to motivate workers performance in the organization due to the
organization must be updated.
To ensure better recruitment and selection methods. As human resource officer I advice
the Managing Director to create good policy of recruitment and selection in order to get
skilled workers. Forexample Company website, internal posting, online job
boards,Newspaper advertisement and agency. If the Managing Director implement that
policy it will lead to create the positive brand image of organization and to get the qualified
employees who will fill the vacant position in the organization. If the organization must be
updated.
To ensure there is good corporation between employer and employee in the organization.
The Managing Director should promote and implement the unity and solidarity between top
level and lower level management. Forexample Managing Director should provide support
and influence to the middle level and lower level management to organize together in order
to work efficiently and effectively to achieve their goals in the organization.
Generally, according to the advice from human resource officer to advise the Managing
Director is supposed to implement and update all the issues explained above so as to
increase production, to increase the efficiency and effective of work as well as development
of organization.
REFERENCE
Nadler, David, Michael L. Tushman, and Mark B. Nadler. Competing by Design: The Power of
Organizational Architecture. New York: Oxford University Press, 1997.
14 KAMBONA,PRISCA M MNMA/BD.HRM/6661/21
We argue f for the statement information technology is mostly important in every business
organizations for running easy different tasks. We tackle the question by showing the
reasons on how this Information Technology benefits the organization by the following
reasons;-
Example of diction making is data driven decision making .skills ,you accept at data
collection and analysis and this is done by this IT (Tom Gerencser ,CPRW Decision making is
the process of making choices by identifying a decision, gathering information, and assessing
alternative resolutions. This information system as the use of computer at large helps in
diction making, example when in a business organizations there is a system of finger print
that established by the organization, that is there to determine the workers attendance at
work ,this will determine who attended at time and who attended late then a manager will
be able to make decisions by determining from the system.so this information technology is
more important in business organizations.
It helps in keeping both organization details/ information and employee's information
Example of the information that are kept by computer are organization background and
trends, financial details. Employee’s information ,business information ,customers and
shareholder information. All this information are keeping by information technology and are
keeping in a sushi a way that all information will be more available at any time when will be
needed for other use. This simplified a work and easy a work. Due to the development of
science and technology nowadays many organization or business organizations tend to
apply this for insuring a great productivity. Example of this business organizations using is
private sector like hospitals, schools as well as government sector both depend on
information technology in running their business.
Information technology plays a great roles in business organizations, and through this
Information technology as the use of computer to stores, restrict different information ,as it
known that a lot of information are very costly then the use of computer to store those
information makes easy for keeping information, not only that but also in the side of
wastage of time this information technology avoids and reduced some contradiction, in
term of spending a lot of time in waiting who is supported to perform what then the system
itself direct at a time. so, this is among of the benefits Quick and effective communication
communication is the process of exchanging ideas from one person to another person and it
can be face by face through orally, or through written means. This information technology
links the customers, shareholders, employee, employers together to discuss and forecast
what necessary is needed for the future plans in the business ,example the use of
phones ,computer all this link together between the above participant members. Efficient
and quick communication is the best mechanism when it comes to dealing with customer
demands, problems and solutions. The beauty of information technology is that it allows
businesses to communicate with potentially millions of customers in real-time on a global
scale. IT provides countless ways to communicate with customers without them even having
to leave the house. Such channels include emails, social media chats video calls, webinars,
member forums, email newsletters or through the smartphone.
Security and the maintenance of databases
The IT department is responsible for the efficiency and security procedures of the business
are up to standard. information technology plays the part of maintaining and ensuring that
there is security and good atmosphere in and out of the organization business. Now days
many business organization are more stable and more flexible for ensuring that the
organization are safe and contain good atmosphere, example of the use of passwords to
keep the information safe.
Pilat, D .(2004) The ICT productivity Paradox: insight from Micru data, OECD Economic
Studies,36(1) Paris
THEMWALIMUNYEREREMEMORIALACADEMY(MNMA)
DEPERTMENTOFHUMANRESOURCEMANAGEMENT.
BACHELORDEGREEINHUMANRESOURCEMANAGEMENT.
GROUP. MEMBERS NO 6
S/N STUDENTSNAME REGISTRATIONNUMBER
1 CHIVUNGU, Dharau Juma MNMA/BD.HRM/6753/21
2 ADRIANO, Anisya S MNMA/BD.HRM/6755/21
3 OLVACAN, Meshack M MNMA/BD.HRM/6756/21
4 ALFRED, Agnes MNMA/BD.HRM/6825/21
5 ELIZEUS, Evodia MNMA/BD.HRM/6712/21
6 AYUBU, Hadija Athumani MNMA/BD.HRM/6726/21
7 MLANGI, Agnes M MNMA/BD.HRM/6734/21
8 SHARIFU, Mohamedy Haji MNMA/BD.HRM/6738/21
9 MUSSA, Mariamu Ramadhani MNMA/BD.HRM/6741/21
10 MBWAMBO, Debora Zawadi MNMA/BD.HRM/6762/21
11 MODESTUS, Frenk Antony MNMA/BD.HRM/6766/21
12 DILLI, Venance V MNMA/BD.HRM/6768/21
13 NELSON, Elizabeth MNMA/BD.HRM/6778/21
14 EMMANUEL, Neema MNMA/BD.HRM/6790/21
15 NZOTA, Lauliano Pelegrin MNMA/BD.HRM/6792/21
16 MKISA, Leuterius MNMA/BD.HRM/6829/21
17 KILUWA, Jesca James MNMA/BD.HRM/6839/21
QUESTION
There are numerals types of organization structure but All of them are developed based on
essential, ingredients/element. Briefly and explain essential element in designing
organization structure and comment on a structure that are suit for rapid changing in
business environment
the hierarchy, roles, and responsibilities of the employees in the company. Organizational
structures use markets, geographical locations, products, functions, or processes to guide
them depending on various business sizes. An organization structure is based on range of
elements.the following are the basic elements, ingredients/ essential of organization
structure as follows;
Work specialization;Work specializations define how responsibilities are split between
employees based on the job description. It s used to split projects into smaller work
activities and assign digestible tasks to individual employees. The most common results of
improper specialization are low efficiency and burnout.
more enough to apply functional departmentation - where employees are grouped based
on the tasks they perform. Startups often go for matrix departmentation that involves
combining two types of departmentation and takes the best out of both worlds. For
instance, functional departmentation can be joined by geographical departmentation to
better serve clients in different locations.
Span of control ;Span of control regulates the number of direct reporters managed
by a single supervisor. It heavily depends on the three aforementioned elements of
organizational structure. Furthermore, to identify the right span of control, you need to
evaluate your leaders capacity, workplace size, and experience level of employees.
PART B
Work specialization is “the degree to which organizational tasks are broken down into
separate jobs.” This means that businesses determine what tasks need to be done and how
those tasks will be divided among employees. It is difficult to make generalizations about
how work specialization affects employees because the advantages and disadvantages of
specialization vary depending on the skill level required to do a task or job and the
personality of an individual employee.
Reduce costs; work Specialization is suit because it reduce costs by lesser risk and
improve productivity and it helps to minimize wastage and diminishes the costs of covering
mistake.Help in develop the status of business in Any organization.
Proud of their work: Specialists are those who have a specific skill set and if those
skills sets are rare to be found then generally those people are really proud of their
specialization.They take pride in their work and often execute with care and respect. They
often show their pride in the job they do as there is no one who could replace them.
Optimize resources ;Specialization makes it possible for businesses to maximize the use
of resources in production. This is because, without specialization, businesses can produce
goods that other companies may also produce. By specializing in one production line, a
company can optimize its resources and maximize their use to benefit the company. It
reduces the costs of production and sales, which typically increases profits. Specialization
Finally;Hence, it can be seen that work specialization is indeed having its own
advantages and disadvantages. Many companies do not consider them as obsolete nor do
they think that it would help to increase productivity. There needs to be a balance of having
work specialization but need to allow workers to switch in between or shuffle their
responsibilities.In other words, job rotation could be considered an alternative way. Also by
broadening the job role, increasing the tasks and responsibilities, empowering them,
expanding the scope of work
REFERENCES
Burke W. W. 1994 Organization Development: A process of learning and changing, 2nd es.
Reading, MA: addison Wesley
THE MWALIMU NYERERE MEMORIAL ACADEMY
QUESTION.
Implementation of changes in organization is tedious task. Due to fact that any changes face
resistance. Who are resist change? Describe with examples as to why people may resist
change in business organizations.
Organizations change refers to the process of growth, decline and transformation within the
organization. Though one thinks that organizations are enduring structures in a changing
society. However, the truth is that organizations are changing all the time. Organizational
change takes different forms. Organizations may change their strategy or purpose,
introduce new products or services, change the way they produce and sell, change their
technology, enter new markets, close down departments or plants, hire new employees.
Group of people, individual or organization can resist changes. Organization change has
their types, the following are the major types of organization changes
a) External Reasons:
A number of changes in the external environment may cause change in the organization.
Here, we are mentioning some of the most common and obvious external reasons of
organizational change-
Government Rules and Regulations: One can catalogue a long list of the Government’s rules
and regulations necessitating changes in organizations. For example, the law of cyber crimes
Competition: The present time is the survival of the fittest. Organizations need to come up
the challenges posed by the competitors to sustain and survive. Example Simba sport club
and Yanga sport club when one club make changes other club will follow because of
competitions
Technological Advances: Technology has become the buzzword of the time. Rapid changes
in technology has posed a question before the organization – either run or ruin. The
revolutionary change in communication technology, i.e., communication satellite, cable
networking, dish antenna.
Change in People Requirements: Customers dictate organization what they actually require.
With changing requirements of customers, the five-star-hotels have, of late, started to offer
new services, such as business Centre’s, conference hall facilities, secretarial services.
b) Internal Reasons:
Though there may be a host of internal factors that may also cause change in organizations,
some of the illustrative ones are listed here:
Organizational Life-Cycle: As human beings pass through certain sequential stages of life-
cycle, so do the organizations also. As an organization grows from tiny sized to giant sized or
from young to mature stage.
The following are the reason why people resisting change in business organizations.
Loss of status or job security in the organization. It is not our nature to make changes that
we view as harmful to our current situation. In an organizational setting, this means
employees, peers, and managers will resist administrative and technological changes that
result in their role being eliminated or reduced. From their perspective, your change is
harmful to their place in the organization! Forcing a change on others has its place. Over
time, however, when this is the only approach that you use to make change, you’ll find that
your change results suffer. If you overuse this approach, you will harm your effectiveness
over the long term as others will find direct and indirect ways to resist you. Without a
thoughtful change strategy to address resistance to change, you will trigger strong
resistance and organizational turnover.
Poorly aligned (non-reinforcing) reward systems. here is a common business saying that
managers get what they reward. Organizational stakeholders will resist change when they
do not see any rewards. When working with managers, I will ask them, where is the reward
to employees for implementing your change? Without a reward, there is no motivation for
your team to support your change over the long term. This often means that organizational
reward systems must be altered in some way to support the change that you want to
implement. The change does not have to always be major or costly. Intrinsic rewards are
very powerful motivators in the workplace that are non-monetary.
Surprise and fear of the unknown. The less your team members know about the change
and its impact on them, the more fearful they will become. Leading change also requires not
springing surprises on the organization! Your organization needs to be prepared for the
change. In the absence of continuing two-way communication with you, grapevine rumors
fill the void and sabotage the change effort. In fact, ongoing communication is one of your
most critical tools for handling resistance to change. But, it’s not just telling! The neglected
part of two-way communication — listening is just as powerful.
Peer pressure. Whether we are introverted or extroverted, we are still social creatures.
Organizational stakeholders will resist change to protect the interests of a group. You might
see this among some of your team members who feel compelled to resist your change to
protect their co-workers. If you’re a senior executive or middle manager, your managers
who report to you may will resist your change effort to protect their work groups. As the
psychologist Abraham Maslow discussed, the need to belong to a group is a powerful need
in the workplace. If your change effort threatens these workplace social bonds, some of
your team members may resist your change effort.
Organizational politics. Some resist changes as a political strategy to “prove” that the
decision is wrong. They may also resist to show that the person leading the change is not up
to the task. Others may resist because they will lose some power in the organizational. In
these instances, these individuals are committed to seeing the change effort fail. Sometimes
when I work with managers they become frustrated with the political resistance that they
encounter from others. Political obstacles are frustrating when you are trying to implement
needed change. My advice to you is to acknowledge what you are feeling and then take
positive steps to counter the organizational resistance you are facing
Fear of failure. Sweeping changes on the job can cause your team members to doubt their
capabilities to perform their duties. What is known is comfortable! Your team members may
be resisting these changes because they are worried that they cannot adapt to new work
requirements. Fear is a powerful motivator that can harden people’s intent to resist your
efforts to implement change. If you want your change effort to be successful, you’ll need to
help your team members move beyond these fears.
Faulty Implementation Approach (Lack of tact or poor timing). Sometimes it is not what a
leader does, but it is how s/he does it that creates resistance to change! Undue resistance
can occur because changes are introduced in an insensitive manner or at an awkward time.
In other words, people may agree with the change that you want to implement but they
may not agree with how you are going about making the change. For any significant
organizational change effort to be effective, you’ll need a thoughtful strategy and a
thoughtful implementation approach to address these barriers. So, the next time you hear
someone say that people naturally resist change explain to them that this is a myth. We
change all of the time.
Generally, Though the people have agreed and are convinced of expected change in
organization, the immediate question before the strategists is how to manage the change?
No company wants to be the victim of change but victor of the change. This managing is an
import art that asks for display of skills of developing an action plan or a process that makes
the company to turn the corner successfully. And also, to manage change the organizations
should Anticipating Change, Identifying the Change, Selling the Change, Mobilizing
Resources for Change, Breaking Down the Comfort Zones, Reinforcing Change Success,
Continuous Learning and Change.
REFERENCES.
Argyris, C. 1990. Overcoming organizational defenses: Facilitating organizational learning.
Boston: Allyn and Bacon.
Davis, MC and Coan, P (2015) Organizational Change. In: Robertson, J and Barling, J, (eds.)
The Psychology of Green Organizations. Oxford University
QN 18. What do you understand by E-commerce? What are the impacts of E-commerce in
business? Explain the application of social media technologies for organization performance
The electronic commerce or internet commerce plays an important role in the economic
growth and development of nation. It is purposeful activity includes in planning, controlling,
promotion and also distributions of various goods and services. Today’s world the e-
commerce or internet business can brings some positive impacts and negative impacts
according to its applications to the business organization.
Information availability and price comparison: The internet is filled with information
and with the use of search engines like Google almost anything can be found out rather
quickly. When you involve online shopping with these abilities you can easily find the best
price for the product you are searching for without having travel from retailer.
Advertising online: The internet todays is very popular place and this makes it ideal for
advertising. Business who runs their own e-commerce site often advertise for other non-
competitors while generating additional revenue and building a partnership with that
business which could do both companies a great of good.
Security issue and customer trust. It is important to provide a safe secure online shop
for a customer when their trying to buy products from you. This helps create a greater
customer trust and ensure them that they can place an order without any worries to help
encourage additional business with that customer in the future. The business will need to
make sure that a safe gateways is available and that the information is secured when the
customer makes the payment.
Direct information and product experience. When you order a products online the
customer will have no face to face contact with the salesperson and no hands on experience
with the products. Instead, the products will usually have a few image to get an idea of the
product along with a products description. Sometimes these images and description can be
misleading and the customer could end up ordering an item that is not exactly what they
want.
Extended delivery time: one prefers buying a physical good from a local store rather
than ordering it online. As delivery takes few days to reach the end customer, who pays at
the time of ordering. E-commerce benefits little to the consumer in such cases. Due to this,
groceries and confectionery product e-business makes small profits.
Lack physical proximity: A physical touch and smell of a product influence a person’s
decision to buy it. An e-commerce offers no such opportunity to its customers. This factor is
a major obstacle to the expansion of various online stores such as garments, leather or
shoes among others.
The social media technologies this refers to a computer-based technology that facilitates the
sharing of ideas, thoughts, and information through virtual networks and communities.
Social media this also is the internet-based and gives users quick electronic communication
of content, such as personal information, documents, videos, and photos. Users engage with
social media via a computer, tablet, or smartphone vie web-based software or applications.
But also social Medias can be used to the organization performance as the technologies
grow thing in order to improve the organization performance. So the following are the
application of social media technologies for organization performance.
Social media used to improve the customer services to the organization; social
media technologies allows the organization to interact with their customers and audiences
in ways that they can’t as easily in other channels. In this case the organization can send
emails to those that have subscribed however, when organization wants to foster
community and have open communication with two way opportunities.
Social media used to build brand authority and reputation to the organization;
many social media sites especially for B2C business this also can serve the organization as
review and rating websites. Example if you are unaware of which social sites your audience
is using and leaving reviews on your industry, you can miss out on the opportunity to
leverage reviews for your benefit.
Social media used to inform product development to the organization; social media
technologies to the organization also used to inform the product development o the
management of the organization and this can helps the management to the organization to
know how their production activities of their products or services is going on to the
department of marketing and sales in the organization. So the social media is the best
common channel to the organization performance.
Discussion for the results; social medias technologies this allows the organization
especially to the administration derptament to discuss all the activities and productions vie
internet such as Zoom meeting and sucblog meeting allows management to analyze and
discuss what can they do in the organization in order to improve their activities and also to
remove unnecessary things in their production of goods or services.
Therefore, E-commerce is not an IT issue but a whole business undertaking. Companies that
use it as a reason for completely re-designing their business. From the inception of the
internet and e-commerce, the possibilities have become endless for both businesses and
consumers.
REFERENCE
www.whatis.com/ecommerce
http://www.impacts-on.com/e-commerce_definition.htm
THE MWALIMU NYERERE MEMORIAL ACADEMY
What is change strategy? Describe with examples three optional change strategies for
enforcing change in a business organization.
Example A publisher that owns a newspaper realizes that the industry is in decline. After
collecting data, its leaders determine that most people receive their news on the internet.
As a result, they decide to shift to an online-only model that requires users to buy
subscriptions to read the content.
It reduce operational cost; for example payroll expenses will below if the business
dismissed some of its employees, likewise outsourced operational are usually less
expensive than in house labor, that’s the cost maintaining operational within the
retail network an company specifically tend to decrease with restructuring.
It improve communication and decision making; simplify management reorders
the organizational highlights of the company open the lines of communication.
It increase optional efficiency; fore stance records become more accurate and
easier to access if a business implements fillings system.
The disadvantage of restructuring;
No guarantee of success; the company will success of there is many factors that it
plays apart from business process reengineering which impact the overall
performance of a company.
It is expensive; business process reengineering, involve making drastic changes
both at strategic level as well as strategic levels as well as operational level in the
company.
The third is Innovation, Organizations can also pursue strategic change through innovation,
which refers to using skills and resources to develop new ideas or improve existing offerings.
This process enables organizations to meet customers' new and changing demands.
Focusing on innovation often requires investing heavily in research and development
activities. The professionals in these programs spend significant time researching,
developing and testing new ideas. There is some risk, as not all ideas may result in the
desired financial outcome or success. However, continuing to offer new and exciting
products or services can also provide long-term value.
Improve sales and customers relations; the use of skills and resources to develop
new ideas in the organizational make easier the influence of quality and quantity
production in a company,
therefore it improves sales and creates good relations between the organization
and customers. And also a productivity will be high
Conclusively, Change in business organization leads to many positive aspects that lead to
retaining a competitive edge and also remaining relevant in your business area. Change
encourages innovation, develops skills, develops staff and leads to better business
opportunities, and improves staff morale and finally the organization will accomplish their
objectives.
REFERENCES
Brown and Howard. (2000). Balanced Wealth Management. London: East Greenwich.
Azhar Kazmi, (2002). Business Policy and Strategic Management. Tata McGraw-Hill
Publishing Company Limited.
THE MWALIMU NYERERE MEMORIAL ACADEMY
QUESTION: 11
Question:What is the business ecosystem? Differential micro and macro business environment of any business
or non business organization.
According to Adam Hayes, A business ecosystem is the network of organizations including supplies,
distributors, customers,competitors, government agencies and so on involved in the delivery of a
specific product or service through both competition and cooperation.
Examples of participants in the system are producers, suppliers, competitors, consumers and
government agencies.There are different types of business ecosystems and this is divided into two
main types that are micro and macro business ecosystems.
business ecosystems that marshal diverse, and increasingly global, resources to create value
to become cost effective.
The following are the differences between micro and macro business environments of any business
or non business organization.
Meaning; micro business environment refers to the environment which is in direct contact with the
business organization and can affect the routine activities of business straight away. It is associated
with a small area in which the firm functions.also, micro business environment is a collection of all
the forces that are close to the firm. While macro business environment refers as the general
environment within the economy that influences the working, performance, decision making and
strategy of all business groups at the some time.it is dynamic in nature therefore it keeps on
changing, also it constitutes those outside forces that are under the control of the firm but have a
powerful impact on the functioning.
Element; Another difference between micro and macro business environment is element, the
element of micro business environment include competitors, organization itself, supplies,
market,inter medias and customer. While macro business environment includes political,economic,
social-culture,technological,legal and environmental.
Nature of Busness;This involves the position or area, micro business environment is specific through
cover small area or have limitation area,For example NMB back which operated only in Tanzania but
macro business environment is general through cover large area or may be applied worldwide,For
example SAMSUNG, NOKIA, FIFA CUP,this operated worldwide.
Factor controllable;micro business environment their factor such as competitors, organization it's
self, supplies, market and customer are more easily to controll.for example customer factor easy to
the business to increase the number of customers due to know the needs of customers or what
customers they needs at that moments. while macro factor of business is not easy to controll
because it cover large area
Influence; in micro business environment their influence are directly and regularly through operated
in small area and can influence the performance and day to day operation of the company but for
short term only for example vendors at ferry kigambo they use speaker around working place to
advertise their business but in macro business environment their influence is directly and distantly
through operated on world wide and cover large area so it's so hard to apply directly influence. for
example the advertisement of Pepsi company is very widely, Through the use of mass media, femous
person to influence customer.
Generally; micro business environments and macro business environments both cover the overall
environment of business,so they are more complementary rather than contradictory. The study of
these environments will help to know the strength, weakness, opportunity and threat of business
and every business organization is part of the business environment, within which it operates. No
entity can function in isolation because there are many factors that are closely or distantly
surrounding the business.
REFERENCES.
Reading, MA
TOP LEVEL OF MANAGEMENT is the high level of managerial hierarchy and also is known as brain of
organization ,top level of management consist of board of director , chief executive officer, general
manager and so on
MIDDLE LEVEL OF MANAGEMENT is located between low level of management and top level of
management , the middle level of management consist department manager , store
department ,branch manager .it function is to perform all managerial function with regard to the
department activities.
LOW LEVEL OF MANAGEMENT is last level of organization hierarchy. Low level of management
consist supervisors, sale officer, account officer, supervisor. It function to plan of day-to-day work,
send report to higher authority, to evaluate operating performance.
MANAGERIAL SKILLS; Are knowledge and ability of individual in managerial position to fulfil some
management activities or task .there are many managerial skills those are; Technical skills, human
skill, conceptual skill, communication skill.
TECHNICAL SKILL, is ability knowledge of using equipment techniques and procedure involve in
perform specific task.
CONCEPT SKILL, are the skill involve to oversee the whole organization and interrelation between
parts.
COMMUNICATION SKILL, are the process of transfer information from one person to another
through symbol, listen and so on.
The following are relation between management level and managerial skills in business
organization;
Motivation; management should ensure that those employee who performing well task must be
motivated in order to increase the moral and capabilities at perform their assigned task .in
motivation supervisor deal with their workers by directing them on duties and to monitor they
workers this mostly is applied by low level of management and the skill which si used to monitor
their worker are human skill and technical skill , is used human skill in order to understand the need
of their worker and use technical skill for provide train to their employee in order to be satisfied with
their task. So level of management and managerial skill is related when supervisor need to know the
wants of their workers.
Multi tasks; any organization need level of management because through level of management we
get goal of the organization which is give direction and also through level organization get
organization structure which is identify each position according to the professional of each employee
within the organization and this it reduce the interaction on duties and also reduce employee
conflict between employee within the company.
Finally, managerial skill and management level are very important in any organization because its
helps to decide the goal of organization and help to rich the targeted goal of the organization by
motivate their employee and by evaluate the performance of their employee in organization
Grand strategies; This refers to the corporate level strategies designed to identify the firm’s
choice with the respect to the direction it follows to accomplish it’s set objectives. Simply it involves
the decision of choosing the long-term plans from the set of available. The grand strategies are also
called as master strategies or corporate strategies. Also there are four grand strategies alternative
that can be followed by organization to realize it’s long-term objectives which are stability strategy,
expansion strategy. Retrenchment strategy as well as combination strategy.
The following are the explanation of those grand strategies alternative that can be followed by
organization so as to realize their long-term objectives.
Stability strategy
This is the grand strategy that implies the company looks for stability in it’s strategy and does not
affect too much changes. Example when a company offer the same product or services.
Expansion strategy
is adopted by an organization when it attempts to archive a high growth as compared to it’s past
achievements. The firm can follow either at the five expansion strategies to accomplish it’s
objectives which are expansion through concentration, Expansion through diversification, Expansion
through integration, Expansion through cooperation and expansion through internationalization.
Retrenchment strategy
This strategy is adopted when an organization aims at reducing it’s one or more business operations
with the view to cut expenses and reach to more stable financial position.
Combination strategy
This means making the use of other Grand strategies (stability, expansion or retrenchment)
simultaneously. Simply the combination of any grand strategy used by an organization in different
businesses at the same time or in the same business at different times with an aim to improve it’s
efficiency this is called a combination strategy.
Ability to focus
It helps the company or firm’s to focus with what have been planned so as to archive organization
goals.
Long-term success
These are success which take longer time to reach. Thus the firm seek to archive long term
successes which are very important since their continuous compared to short-term success which
resolves the current issues.
Measurable progress
The strategy also provide the company a yardstick or benchmark against which it can measure it’s
progress or failure. Peter Drucker, the famous management as said “what gets measured improves”
the strategy provides clarlty to the company on what needs to be measured.
Other benefits This means that helps to share corporate vision with the employees and motivates
them to work hard.
Not only that but also Michael Porter describe several types of competitive strategies.
Competitive strategies; This is a long-term action plan of a company which is directed to gain
competitive advantage over its rivals after evaluating their strength, weakness, opportunities and
threats in the industry and compare it with your own.
Michael Eugene porter born may 23,1947 Is an American academic known for his theories on
economic, business strategy and social causes he is also regarded as one at the world’s most
influential thinkers on management and competitiveness as well as one of the most influential
business strategists the world has ever seen. Michael Porter presented competitive strategy concept
as follows;
Cost leadership
It suits large business that can produce a big volume of products at a low costs, and that is why
almost implemented this strategy. It means that companies using a cost leadership strategy are the
lowest price sellers on the market. Hence the cost price of the product should be low to make a
profit.
This is the killer strategy that allows brands to stand out among competitors it requires identifying a
unique quality that make a company different. Example Azam energy and Mo energy so customers
went to Mo just because the product is cheap and sweet.
Focus strategy, This strategy is similar to the cost leadership strategy in terms of providing
customers with the lowest price. The only difference is that a cost focus strategy implies targeting a
specific market segment with the unique needs and want.
Therefore, according to the grand strategies and business competitive strategies proposed by Michel
porter. Some time there are challenges like;
Time Consuming
Managers spend a great deal of time preparing, researching and communicating the strategic
management process, which may impede day-to-day operations and negatively impact the business.
For example, managers may overlook daily issues needing resolution, and inadvertently cause a
decrease in employee productivity and short-term sales.
And other challenges is Difficult to Implement The implementation process requires a clearly
communicated plan, implemented in a way that requires full attention, active participation, and
accountability of not only company leaders, but also of all members across the organization.
REFERENCES
John J. Mearsheimer, The Tragedy of Great Power Politics, Updated Edition (New York, NY: Norton,
2014).
Kenneth N. Waltz, Theory of International Politics (Long Grove, IL: Waveland Press, 2010).
Hans Morgenthau, Politics Among Nations (New York: McGraw Hill, 1948).
Alexander Wendt, “Anarchy is what states make of it: the social construction of power politics,”
International Organization, Vol. 46, No. 2 (1992).
Alexander Wendt, Social Theory of International Politics (New York: Cambridge University Press,
1999).
THE MWALIMU NYERERE MEMORIAL ACADEMY (MNMA)
SN NAMES REG NO
01 NYAULINGO, GODFREY FRANK MNMA/BD.HRM/6906/21
02 MLANGAFU, JACKSON STEVEN MNMA/BD.HRM/6916/21
03 MUHILI, HADIJA S MNMA/BD.HRM/6624/21
04 MPUQWEEN, ELISANTE E MNMA/BD.HRM/6846/21
05 OKUTU, WITNESS I MNMA/BD.HRM/6601/21
06 JOELY, A OWEN MNMA/BD.HRM/6628/21
07 LIWONDO, RUKIA A MNMA/BD.HRM/6629/21
08 SADICK, HIDAYA SULEIMANI MNMA/BD.HRM/6658/21
09 LIVINJE, FATINA S MNMA/BD.HRM/6678/21
10 KAONA, HERIETH J MNMA/BD.HRM/6684/21
11 MUNUO, SIONI MNMA/BD.HRM/6687/21
12 BUJIKU, LUCIA Y MNMA/BD.HRM/6717/21
13 PETER, MOHAMED MNMA/BD.HRM/6761/21
14 PIUS, ELIZABETH J MNMA/BD.HRM/6765/21
15 MIKENZE, ABIGAIL GEOFFREY MNMA/BD.HRM/6716/21
16 MGANGA, REGINA MNMA/BD.HRM/6806/21
17 MLAPONI, IMANI LUCAS MNMA/BD.HRM/6827/21
18 RAJABU, LATIFA K MNMA/BD.HRM/6869/21
19 MATHAYO, ELIHURUMA MNMA/BD.HRM/6751/21
20 SEBINA RAJABU NDONYI MNMA/BD.HRM/5200/20
QUESTION;
(a) What is strategy and strategic management.
(b) Explain the five steps for strategic management process.
Strategy, this refers to the general direction for a manager to achieve the goal. Or is
a patten in action over time, or sometimes it can be defined as plan of action that fit
together to reach a clear destination or achieve organization goals. Good examples of
strategy include, technological advancement, improve customer service, increase sells from
new products, pro-selling products, innovation and pushing boundaries. Also, there are
some of the components of strategy which are; differential learners, economic visioning,
objectives setting, resource allocation.
Goal setting, the purpose of setting goals is to clarify the business vision, this is the
among the strategic management process whereby setting well defined goals should clarify
your organization. This stage comprises three important tasks; identifying your short-term
and long-term objectives, determining the process of accomplishing your goals and and
customizing the process for the staff. The objectives should be realistic, detailed and in line
with the values. For the final task, is to consider writing a mission statement that clearly
communicates the objectives to the shareholders and staff.
Situation analysis, once there is vision of the company gather the information that
will help to accomplish the goals. A good place to start is by doing simple analysis, which are
Strength, in which a company is good at doing or characteristics that give it enhanced
competitive example. physical assets, intangible assets etc. Weaknesses the what company
lacks, does poorly or condition that puts it at a disadvantage, weakness represents a
company’s competitive ability. Opportunity, an opportunity is that which enable a company
to excel in achieving its objectives.it is external to organization and can be source of growth,
profitability, or gaining a competitive advantage.
Evaluation and control, any successful evaluation of the strategy begins with the
definition of parameters to be measured. These parameters should reflect the goals
established in stage 1. Determine your progress by measuring actual result versus the plan.
Monitoring internal and external problems will also allow to react to any substantial change
in your business environment. If there is determination of the strategy which is not moving
the company toward its goal, take corrective action, repeat the strategic management
process., this is because internal and external issues are constantly evolving all data
obtained at this stage should be kept to help with any future strategy, also at the evaluation
the key thing is the feasibility of the strategy. Check if the resource required to implement
the strategy are available, can be developed or obtained. Resources include funding, people,
time and information.
Lamb, Robert, Boyden: competitive strategic management. Englewood cliffs, NJ: prentice-
Hall, 1984.
Stacey, R.D. (1995). “The science of complexity-an alternative perspective for strategic
change process”. Strategic management journal.
THE MWALIMU NYERERE MEMORIAL ACADEMY
18. Business organization invest resources such as finance, human, information and physical
resources with expectation of profits or value maximization. In the above concept Explain the
control processes used in business organization.
Business Organization; Is any Entity formed for the purpose of carrying on commercial
enterprise that describes how business are structured and how to produce Goods or
services and met customer needs. Any organization is focused on creating profits and
maximization in organization. Therefore business organization is all about managing
organization resources such as man power, information, physical resources so as
organization will be able to achieve its goals. Physical resource under managing business
organization should pray the role part of managing all physical resources such as land,
transport facilities, and buildings, Finance resource is all about funds for buying various
material within the organization like office equipment and furniture used for maintenances
of various facilities, Human resource means in any organization people is a vital and
important asserts to keep in order to reach the targeted goal in which an organization
intended to archive and lastly Information it is all about to know what is going or being
informed in certain issues concern organization
Controlling; Is Installing process to guide the team towards goals and monitoring
performance towards goals and making change to the plans as needed (Batemans & Snell,
(2013) generally Controlling; This is a Managerial function that is used to measure standard
that are being obtained within organization through employees. It involves carefully
collection of information about a system, process, person, group, in order to make
necessary decision in finance resources and in organization equipments. Controlling as a
managerial function has contains its main process that are to be considered in measuring
performance at works place and the followings are the processes of Controlling;
Establish Clear Standard; Standard are plans or the target which are to be archived in
the course of business function. Standard generally are classified into
If Needed Take Corrective Action; Once the causes and extent of deviation are
know the manager has to detect those errors and take remedial standard measures them.
There are two alternatives fist is taking corrective measures for deviation that have
measured and second is after taking the corrective measures, if the actual performance is
not in conformity with plans the manager can revise the targets. It is here controlling
process ends.
Insipite of controlling having the above steps also controlling has these steps for the aims
that applied in organization and the followings are the functions of controlling in
organization;
Archiving Organization Goal; Controlling ensures efficient and effective use of the
resources of the organization in order to archive organization goal.
Efficient use of Resources controlling allows the manager in minimizing the westage of
resources and ensuring proper utilization of available resources.
Determine The Accuracy Standard; Manager always compare the work done with a set
of provided standard defined for the work and determine whether the set standard are
effective.
Motivate Employees; in organization employees are also aware that their performance
is judged using some set of standard.
Maintains Discipline and order; controlling brings about order and discipline in regular
operation of the organization.
Helps in Decision Making; controlling helps the manager to determine the gap between
thinking and actual implementation. It leads to better decision making and improves the
overall performance of the organization.
Bowden B., Mc Murray A. (ed) The palgrave Handbook of Management Histry. Palagrave
Macimillian. London UK.
THE MWALIM NYERERE MEMORIAL ACADEMY
Relative market share is a metric that shows a company's position in the market compared
to its main competitor.
Market growth rate is the predicted percentage growth for your industry over a defined
period of time.
Boston consulting group matric is based on the observation that a company’s business
units can be classified into four categories;
● The BCG Matrix Stars ;Products in the star quadrant are in a market that is growing
quickly and one where the products have a high market share. Products in the stars
quadrant are market-leading products and require significant investment to retain
their market position, boost growth, and maintain a competitive advantage.
Stars consume a significant amount of cash but also generate large cash flows.It
means high growth leads to high Market Share
● The BCG Matrix Cash Cows; Products in the cash cows quadrant are in a
market that is growing slowly and where the product(s) have a high market
share. Products in the cash cows quadrant are thought of as products that
are leaders in the marketplace. The products already have a significant
amount of investments in them and do not require significant further
investments to maintain their position. It means low growth, high Market
Share
● The BCG Matrix Question Marks; Products in the question marks quadrant
are in a market that is growing quickly but where the product(s) have a low
market share. Question marks are the most managerially intensive products
and require extensive investment and resources to increase their market
share. Investments in question marks are typically funded by cash flows
which leads to high growth, low market Share
QUESTION:
Business scanning is aimed at forecasting what may face business in the future
and providing solution in reference to the past. Many techniques are useful for
scanning business environment. Explain SWOT/SWOC as one of methods. Use
any business organization you are familiar with.
Business is the practice of making ones living or making money by producing or buying and
selling products such as goods or services.
Business is a human activity directed towards producing and acquiring wealth through
buying and selling goods (Lewis H.H 2011).
Scanning business environment, is the process that systematically surveys and interprets
relevant data to identify external opportunities and threats that could influence future
decisions of the business. This is closely related to SWOT analysis and could be used as the
part of strategic planning process. This have components such as trends, competition,
weakness, technology, customers, economy, and political or legislative arena (Thomas E,
2020).
SWOT/SWOC, is the technique for assessing the performance, competition, risk, products
line division of manpower and potential of the business. is the method used to assess the
company internal and external environment, this also involves on identifying the company
strength, weakness, opportunities, and threats or challenges. This is the useful technique as
the thinking strategy and making decisions.
This document shows SWOT/SWOC as the one of the method or technique used in scanning
business environment showing its components.
Strength (S), this describes what organization excels and what separates it from the other
surrounding and competing organizations. During the scanning of the business environment
things like having the strong and loyal customer base, strong brand, having unique
technology, resource capacity, markets, financial resources facilities, good distribution
systems, and employees (Rowe M.N 1994).
This can help the organization to achieve the its goals and objectives. Example Bakhresa
food products company have good distribution systems like having many cars for product
distribution throughout the country. Also having the good financial resources as capital for
production of drinks and have the advanced technology of production. This makes the
company be more competitive.
Weakness (W), these are the factors that may prevent a business organization from
meeting the mission or achieving its full potential, success and its growth. This area the
business needs to improve to remain competitive for the performance at the optimum level.
Weakness of the business includes weak brand, insufficient research and development
facilities, higher employee’s turnover, insufficient capital, higher levels of debts, inadequate
chain of supply chain, outdated technology, resource limitations, lack of clear goals of the
business, poor customer services and uncompetitive managing team.
Opportunities (O), these refers to the favourable external factors that could give a business
organization to gain the competitive advantage in a business area. The external factors in
the business environment are likely to contribute on the business success which are like few
competitors in the business area, emerging need for the products and services, availability
of media coverage for business advertisements like radio and television, technological
advancements, raw materials availability and clear market of products of goods (Nishant R
2017). For example, Bakhresa food products company made the scanning on the emerging
needs and scarcity of sugar in Tanzania then decided to build the sugar production industry
in Bagamoyo in Pwani region.
Threats/Challenges (T/C), these are the factors that have the potential harm to an
organization. These factors can cause the long run or ruin the opportunity for the business
expansion. Example of threats or challenges are like overspending without proper analysis,
many emerging competitors, unsatisfactory raw materials and man power, rising costs for
materials, low competitive labour supply, environmental problems like draughts and natural
disasters. For example, in Tanzania Bakhresa food products company have many emerging
competitors on producing the products in the market such as MO products on
manufacturing and packaging.
Lewis H.H (2011). Great Business Idea: New York. McGraw-Hill Press
Nishant R (2017). An Interpretive Structural Modelling Analysis: London. Agi and Man
Publishers.
Thomas E, (2020). Environmental scanning and planning. New York: Thomas Edson State
University Press.
THE MWALIMU NYERERE MEMORIAL ACADEMY
SN NAMES REG.NO
12 KAJANGE,TUMAINIsaimon MNMA/BD.HRM/6791/21
17 MSELEM,Joha MNMA/BD.HRM/6702/21
18 CHRISTIAN,Joneth A MNMA/BD.HRM/6796/21
Question; Identify forms of business
Organizations. For each form of
organization describe its advantage and
disadvantage.
Partners can combine expertise: With more than one like-minded individual, there are
more opportunities to increase their collaborative skillset.
Disadvantages to consider:
Possibility for disagreements: By having more than one person involved in business
decisions, partners may disagree on some aspects of the operation.
Full liability: In a partnership, all members are personally liable for business-related
debts and may be pursued in a lawsuit.
Corporation
A corporation is a business organization that acts as a unique and separate entity from its
shareholders. A corporation pays its own taxes before distributing profits or dividends to
shareholders. There are three main forms of corporations: a C corporation, an S corporation
and an LLC, or limited liability corporation.
Advantages of corporations include:
Owners aren't responsible for business debts: In general, the shareholders of a
corporation are not liable for its debts. Instead, shareholders risk their equity.
Quick capital through stocks: To raise additional funds for the business, shareholders
may sell shares in the corporation.
Disadvantages include:
Double taxation for C-corporations: The corporation must pay income tax at the
corporate rate before profits transfer to the shareholders, who must then pay taxes on
an individual level.
Owners are less involved than managers: When there are several investors with no
clear majority interest, the management team may direct business operations rather
than the owners.
Sole proprietorship
This popular form of business structure is the easiest to set up. Sole proprietorships have one
owner who makes all of the business decisions, and there is no distinction between the
business and the owner.
Advantages of a sole proprietorship include:
Total control of the business: As the sole owner of your business, you have full
control of business decisions and spending habits.
No public disclosure required: Sole proprietorships are not required to file annual
reports or other financial statements with the state or federal government.
Easy tax reporting: Owners don't need to file any special tax forms with the IRS other
than the Schedule C (Profit or Loss from Business) form.
Low start-up costs: While you may need to register your business and obtain a
business occupancy permit in some places, the costs of maintaining a sole
proprietorship are much less than other business structures.
Disadvantages include:
Unlimited liability: You are personally responsible for all business debts and
company actions under this business structure.
Lack of structure: Since you are not required to keep financial statements, there is a
risk of becoming too relaxed when managing your money.
Difficulty in raising funds: Investors typically favor corporations when lending money
because they know that those businesses have strong financial records and other forms
of security.
Some typical examples of sole proprietorships include the personal businesses of freelancers,
artists, consultants and other self-employed business owners who operate on a solo basis.
Cooperative
A cooperative, or a co-op, is a private business, organization or farm that a group of
individuals owns and runs to meet a common goal. These owners work together to operate
the business, and they share the profits and other benefits. Most of the time, the members or
part-owners of the cooperative also work for the business and use its services.
Advantages of a cooperative include:
Greater funding options: Cooperatives have access to government-sponsored grant
programs, like the USDA Rural Development program, depending on the type of
cooperative.
Democratic structure: Members of a cooperative follow the "one member, one vote"
philosophy, meaning that everyone has a say, regardless of their investment in the co-
op.
Less disruption: Cooperatives allow members to join and leave the business without
disrupting its structure or dissolving it.
Disadvantages include:
Raising capital: Larger investors may choose to invest in other business structures that
allow them to earn a larger share, as the cooperative structure treats all investors the
same, both large and small.
Flexible management: LLCs lack a formal business structure, meaning that their
owners are free to make choices regarding the operation of their businesses.
Associated costs: The start-up costs associated with an LLC are more expensive than
setting up a sole proprietorship or partnership, and there are annual fees involved as
well.
Separate records: Owners of LLCs must take care to keep their personal and business
expenses separate, including any company records, whereas sole proprietorships are
less formal.
Common examples of limited liability companies include start-ups and other small
businesses. Family-owned businesses and companies with a small number of members may
operate as an LLC because it is a flexible business model that allows members to be active or
passive in their roles.
So that It is very clear that for one to succeed in any kind of business undertaking then one
must choose the most appropriate for of business. In this case we have looked at various
forms of business organization with their descriptions, advantages and disadvantages. Finally
we have seen a kind of an advice which we can give in a given situation.
REFFERENCE
Agarwal, R.D.(1982),Organization and Management, McGraw-Hill Bok Company, New
York.
Dale, Y.(1972),personnel management and Industrial Relation, Prentice Hall of India, New
Delhi.
Medina, R.(2006), Business organization and Management, Pex Bookstore, Phillippines.
Kaul ,V.( 2011),Business Organization and Management, Roason India, India.
THE MWALIMU NYERERE MEMORIAL ACADEMY
GROUP NO 03
NO NAMES REG. NO
01. KIYA, JOHN JAMES MNMA/BD.HRM/6835/21
O2. GODFREY, ALBINA NYAKATO MNMA/BD.HRM/6840/21
03. HAMADI,ABDALLAH R MNMA/BD.HRM/6843/21
04. SIGILU, NCHAMA HALAJA MNMA/BD.HRM/6857/21
05. MAYUNGA, AGNES MAIKO MNMA/BD.HRM/6872/21
06. BENEDICTO MAZOVU COSMAS MNMA/BD.HRM/6902/21
07. MWINZA, REGINALD MUTUNGI MNMA/BD.HRM/6908/21
08. NGOLE, HILDA H MNMA/BD.HRM/6637/21
09. MURUSULI, SONDO SALIM MNMA/BD.HRM/6639/21
10. HAJI, VIWE S. MNMA/BD.HRM/6663/21
11. DIWANI, SABRA A. MNMA/BD.HRM/6677/21
12. ISSA, MWANJAA KHAMIS MNMA/BD.HRM/6685/21
13. CHUWA GRACE.WENZESLAUS MNMA/BD.HRM/6740/21
14. KISAILO, AMINA A MNMA/BD.HRM/6754/21
15. UDINDO, LISA A MNMA/BD.HRM/6771/21
16. SWILLAR, SAMWEL J MNMA/BD.HRM/6772/21
17. NSUNGI, NJILE ANDREA MNMA/BD.HRM/6801/21
18 AMIRI, ALFANI RASHIDI MNMA/BD.HRM/6856/21
Question
GROUP NO: 15
Question
Expansion strategy
This is the killer strategy that allows brands to stand out among competitors it requires
identifying a unique quality that make a company different. Example Azam energy and Mo
energy so customers went to Mo just because the product is cheap and sweet.
Focus strategy, This strategy is similar to the cost leadership strategy in terms of
providing customers with the lowest price. The only difference is that a cost focus strategy
implies targeting a specific market segment with the unique needs and want.
Therefore, according to the grand strategies and business competitive strategies proposed
by Michel porter. Some time there are challenges like;
Time Consuming
Managers spend a great deal of time preparing, researching and communicating the
strategic management process, which may impede day-to-day operations and negatively
impact the business. For example, managers may overlook daily issues needing resolution,
and inadvertently cause a decrease in employee productivity and short-term sales.
And other challenges is Difficult to Implement The implementation process requires a clearly
communicated plan, implemented in a way that requires full attention, active participation,
and accountability of not only company leaders, but also of all members across the
organization.
REFERENCES
John J. Mearsheimer, The Tragedy of Great Power Politics, Updated Edition (New York, NY:
Norton, 2014).
Kenneth N. Waltz, Theory of International Politics (Long Grove, IL: Waveland Press, 2010).
Hans Morgenthau, Politics Among Nations (New York: McGraw Hill, 1948).
Alexander Wendt, “Anarchy is what states make of it: the social construction of power
politics,” International Organization, Vol. 46, No. 2 (1992).
Alexander Wendt, Social Theory of International Politics (New York: Cambridge University
Press, 1999).
THE MWALIMU NYERERE MEMORIAL ACADEMY
Organisation is the process of identifying and grouping work to be performed, defining and
delegating responsibility and authority and establishing relationship for the purpose of
enabling people to work most effectively together in accomplishing objectives. Or is the
group of people assembling or congregating at one place and contributes their effort to
achieve a common goal. Structure is the arrangement of and relations between the parts or
elements of something complex
Organisation structure is the systematic arrangement of human resource that define the
hierarchy, duties and responsibility in an organisation so as to achieve a common goal. It
clearly defines the functions of employee that enable them to work harmoniously and
efficiently. As it explained above, the organisation structure seems to be the key direction of
the organisation to achieve its goals, there are some factors that must be taken into account
when the management want to design and redesign it.
The following are the factors that should be considered when designing organisation
structure
Clarity, this is the first factor that should be considered when designing organisation
structure. Clarity means the quality or state of being clear, lucidity or transiparency.In
designing organisational structure, the management should make sure that all employees have
clear picture of all aspects of their jobs. In other word workers and supervisors alike should
know what the employee’s goals are as well as the individual tasks required to reach those
goals. There should be complete transparency in the reporting relationship as well as source
of information used in the decision making process. Workers at all level need to understand
the purpose, often referred to as mission or vision of the organisation as well as its
infrastrures.
Understanding, this is the second factor to consider when designing organization structure.
Understanding means the state or ability to judge or apprehend general relation of particular.
In designing the organization structure, the management must make sure that, all employees
know where they fit within the bigger picture of the organisation as whole. The designed
organisational structure it should be simple to be understood by all employees because
difficulty in understanding the organisational structure would contribute failure to employees
to execute their duties as well as responsibilities
Apart from factors that considered in designing organisation structure, also there are
factors that are considered in redesigning the organisation structure
Organisational size, this is the factor that impact the organisation structure, when the
organisation is small its structure can be simple. But once it start to grow and expand it
became increasingly difficult to manage without formal work assignment and some
delegation of authority. Thus the growth of the company has greater effect on change or
redesigning of organization structure so as to simplify work and other activities within an
organisation to archive organisation goals.
Organization life cycle, Organizations, like humans, tend to progress through stages known
as a life cycle. Like humans, most organizations go through the following four stages: birth,
youth, midlife, and maturity. Each stage has characteristics that have implications for the
structure of the firm. When the organization pass through birth stage its structure also is
simple but when it start to pass through the other stage which are youth, midlife and maturity
the structure also change according to complicity of the work and responsibility within an
organization
Strategy is a plan of actions designed to achieve a long term or overall aim. Once the
organization position itself in the market in terms of its product is considered its strategy. A
company may decide to be always the first on the market with the newest and best products
or it may decide that it will produce a product already on the market more efficiently and
more cost effectively. Each of these strategies requires a structure that helps the organization
reach its objectives. In other words, the structure must fit the strategy
Environment, this is another factor that affect the organization structure. The environment is
the world in which the organization operates, and includes conditions that influence the
organization such as economic, social‐cultural, legal ‐political, technological and natural
environment conditions. Environments are often described as either stable or dynamic. Thus,
it has great impact on change or redesigning of structure to be more complex and capable of
adopting those changes.
Therefore those are factors that are considered in designing and redesigning the organization
structure. The structure of any organization depends on various factors including its size,
strategy, political atmosphere, technology and other factors. Organizations that operate in
stable external environments find mechanistic structures to be advantageous. This system
provides a level of efficiency that enhances the long ‐term performances of organizations that
enjoy relatively stable operating environments. In contrast, organizations that operate in
volatile and frequently changing environments are more likely to find that an organic
structure provides the greatest benefits. This structure allows the organization to respond to
environment change more proactively.
THE MWALIMU NYERERE MEMORIAL ACADEMY
Apart from the function of management the following are the essentialities
of management competences in managing business organisation.
Aligning goals. A company consists of employers and several employees who
work together. Everybody has their own goals,management gives them
common direction to achieve their goals together. Example the goal of the
company is to maximize their out put and profit. The goal of an employee is to
get the most out of the company in terms of both salary and recognition.
Management helps in aligning these two goals by using effective employee
motivation strategies which makes him give his best to the organisation.
Best utilisation of resources.the proper utilisation of resources is really
important for an organisation which operates in a competitive environment.
Management helps in division of labour and prevents the employees from
under performing of getting overburdened with work.
Reducing cost. Management helps to combine all the factors of productivity
and organise them. It involves the best utilisation of resources which prevents
wastage of time and efforts, which eventually reduces the wastage of Money.
Therefore management gives the better return of investment.
Increasing efficiency. The main aim of the company is to get the most efficient
result ,I.e to achieve maximum profit by maximizing the output and minimizing
the Input management involves the optimal utilisation of resources and helps
in cost reduction. These two factors consequently increase the efficiency of the
company.
Tackling competition. Proper management always aims at sound functioning
of the organisation and reduces the failure rates. Thus, helping to overcome
tough situations and keeps the organisation ahead of competitors. In the
modern business environment, one can pursue the organisation in large
market through proper management.
Generally, Management is creative problem solving. The creative
problem solving is accomplished through the functions of management;
planning,organizing,leading and controlling. The intended result is the
use of an organisation's resources in a way that accomplishes it's mission
and objective.
REFERENCE
Hannaway,J(1989).Managers Managing:The workings of an Administrative
System.New York:Oxford University Press,P.39.
Mintzberg,H.(1973).The Nature of Managerial Work.New
York:Harper&Row.P.37.
Stewart,R (1967).Managers and Their Jobs.London:Macmallan.
The following are the reason to why changes are unavoidable in any organization.
Crisis: September 11, 2001 is the most dramatic example of a crisis which caused countless
organizations and even industries such as airlines and travel to change. The 2008 financial
crisis obviously created many changes in the financial services industry as organizations
attempted to survive.
Performance gaps: This occurs when an organization's goals and objectives are not being
met or other organizational needs are not being satisfied. Changes are required to close these
gaps.
New technology: The identification of new technology can lead to more efficient and
economical methods to perform work. This may force the organization to undergo change in
order to meet the required technology for the seek of more growth of the company
Identification of opportunities: Opportunities are identified in the market place that the
organization needs to pursue in order to increase its competitiveness. There are some levels in
which an organization my not reach so in order to reach them they need to change and at the
end to get more opportunities.
Reaction to internal and external pressure: Management and employees, particularly those
in organized unions often exert pressure for change. External pressures come from many
areas, including customers, competition, changing government regulations, shareholders and
financial markets in the organization's external environment.
Here are five effective change management strategies that deal with the human element
of organizational change.
Propose Incentives: Assuming employees will follow their own self-interests, the first
change management strategy is to offer incentives that will encourage people to accept and
ultimately engage with the new direction of the company. Employee recognition programs
and rewards tailored to specific actions and company values provide the “carrot” some
workers need to buy into change. Incentives also help reinforce the behaviors and actions
upper management is looking for in this time of upheaval. Lastly, this positive model of
change management shows that the leadership appreciates their employees during a difficult
time of transition.
Exercise Authority: Depending on how serious the need for change is, an organization may
choose to exercise its authority to decrease employee opposition and get workers to adhere to
new standards, processes, and cultural norms as quickly as possible.If the threat is grave
enough that imminent change is necessary for survival, organizations might simply not have
the time to invest in incentive programs or culture change initiatives.
Shift the Burden of Change: Although people are often quick to oppose change, especially
change they view as undesirable or disruptive, they are often even quicker to adapt to new
environments. Organizations can take advantage of this adaptability by creating a new
structure complete with new processes, workflows, and values and gradually transfer
employees from the old one. This strategy is best suited for
share the need for change (and the benefits) with their peers can speed up worker buy-in,
lower the degree of resistance, and serve as a mechanism for collecting feedback and
disseminating information regarding the planned.
Training:
Dale S. Beach defines training as ‘the organized procedure by which people learn
knowledge and/or skill for a definite purpose’. Training refers to the teaching and learning
activities carried on for the primary purpose of helping members of anorganization acquire
and apply the knowledge, skills, abilities, and attitudes needed by a particular job and
organization.
We chooses Training as the best technique in imposing changes in an organization due to the
following reasons:-
Create a sense of urgency: The adage “If it ain’t broke, doesn’t fix it” seems to dominate the
culture of many organizations. As such, all effective change must present as the solution to a
problem. Your business can achieve this as you: Assess any potential threats that could arise
in the near or distant future. These threats could involve assessing changes in technology,
advancements of your competition, changes in market demand. Seek support from
stakeholders, customers, and influential industry leaders to strengthen your standing.
Form a powerful coalition: To lead the charge on a big company change, you will need
allies and stakeholders. Having other visible company members united behind your vision
sends a powerful message and quickly helps spread support. Try one of these proven methods
of doing this: Identify the key change leaders and stakeholders in your organization, and ask
for their support in implementing your vision. Create a coalition that consistently and
publicly operates as a team. And assess the weak areas of the coalition, and compensate by
involving many members from across various departments and company levels. Having
diversity across the job title and level will help distribute the strength of the vision across the
myriad positions within your company.
Create a vision for change: The change process began because you had a vision for how
things could and should be done differently. Making that vision clear and understandable is
paramount to achieving the change you desire. Use visuals to map out processes and systems
to see what's working and what’s not—they can help you establish urgency and create a clear
vision for change.
Communicate the vision: Your organization probably has lots of communication that you
will be in competition with. For this reason, it’s not enough to just email your vision or share
it with your organization members. To effectively institute the change, you must repeat it
every chance you get and also demonstrate the behavior that you wish to see. To do this, you
must:
Build on the change: Early victories, while great for beginning the change, are not enough to
sustain the change. Quick wins may deceive you or your teammates that the process of
change is complete, but true change must be settled with repetition and expansion. To build
on change, you must: Analyze what went right and what went wrong after each victory, Set
gradually more ambitious goals that can build exponential momentum upon achievement,
Bring on additional influential stakeholders or change agents.
Anchor the changes in corporate culture: The final step to your change process is ensuring
that it is embedded into your company culture. Time, changes in leadership, and changes in
staff can evaporate the impact of your change quickly and easily. To ensure that your change
remains part of the company culture: Talk about progress at every opportunity possible. Share
stories about success from your change vision, and repeat stories from others.
In general the changes in organization have both negative nad positive impacts to the
organization and to the employees includes an opportunity for employees to shine, increase in
salary and the negative impacts includes job loss, downgrading in job and loss of benefits.
REFERENCES
2. Eccles, R. G. & Nohria, N. (1992). Beyond the Hype: Rediscovering the Essence of
Management. Boston: The Harvard Business School Press, p. 47.
4. Mintzberg, H. (1973). The Nature of Managerial Work. New York: Harper & Row. P. 37.
5. Kotter, J. P. (1999). “What Effective General Managers Really Do,” Harvard Business
Review, March–April 1999, pp. 145–159.
6. Kotter, J. P. (1999). “What Effective General Managers Really Do,” Harvard Business
Review
THE MWALIMU NYERERE MEMORIAL ACADEMY (MNMA)
SN NAMES REG NO
01 NYAULINGO, GODFREY FRANK MNMA/BD.HRM/6906/21
02 MLANGAFU, JACKSON STEVEN MNMA/BD.HRM/6916/21
03 MUHILI, HADIJA S MNMA/BD.HRM/6624/21
04 MPUQWEEN, ELISANTE E MNMA/BD.HRM/6846/21
05 OKUTU, WITNESS I MNMA/BD.HRM/6601/21
06 JOELY, A OWEN MNMA/BD.HRM/6628/21
07 LIWONDO, RUKIA A MNMA/BD.HRM/6629/21
08 SADICK, HIDAYA SULEIMANI MNMA/BD.HRM/6658/21
09 LIVINJE, FATINA S MNMA/BD.HRM/6678/21
10 KAONA, HERIETH J MNMA/BD.HRM/6684/21
11 MUNUO, SIONI MNMA/BD.HRM/6687/21
12 BUJIKU, LUCIA Y MNMA/BD.HRM/6717/21
13 PETER, MOHAMED MNMA/BD.HRM/6761/21
14 PIUS, ELIZABETH J MNMA/BD.HRM/6765/21
15 MIKENZE, ABIGAIL GEOFFREY MNMA/BD.HRM/6716/21
16 MGANGA, REGINA MNMA/BD.HRM/6806/21
17 MLAPONI, IMANI LUCAS MNMA/BD.HRM/6827/21
18 RAJABU, LATIFA K MNMA/BD.HRM/6869/21
19 MATHAYO, ELIHURUMA MNMA/BD.HRM/6751/21
20 SEBINA RAJABU NDONYI MNMA/BD.HRM/5200/20
QUESTION;
(a) What is strategy and strategic management.
(b) Explain the five steps for strategic management process.
Strategy, this refers to the general direction for a manager to achieve the goal. Or is a
patten in action over time, or sometimes it can be defined as plan of action that fit together to
reach a clear destination or achieve organization goals. Good examples of strategy include,
technological advancement, improve customer service, increase sells from new products, pro-
selling products, innovation and pushing boundaries. Also, there are some of the components
of strategy which are; differential learners, economic visioning, objectives setting, resource
allocation.
a) it helps to prioritize the identification for strength, weakness threats and opportunities,
b) it helps to achieve overall performance and ability to achieve goals, increase
productivities,
c) it helps an organization and leadership to think about and planning for it future exist
once,
d) it helps to determine strategic direction,
e) it helps to focus on strategically important factors.
The factors affecting strategic management are;
Competition from Other Businesses, rising competition in target markets triggers urgent
reviews of strategies in efforts to enhance competitive advantage. Businesses employ
strategic tools such as a SWOT analysis to examine strengths, weaknesses, opportunities and
threats and change the existing strategies. For example, challenges such as product imitations
by competitors pose threats to your competitive advantage. Changing strategies will enable
you to change course by addressing the inherent weaknesses and threats.
Social and Cultural Factors, the social and cultural profiles of your the target markets may
prompt changes in strategic management. You want to make sure that the strategic orientation
of your business is realigned to account for demographic and cultural sensitivities, especially
when entering new markets or designing new products for specific market segments.
Laws and Regulations, changes in laws, such as tax, environment and healthcare laws,
influence changes in strategic management. You must adjust the existing strategies of your
business to incorporate the requirements of the new laws. For example, a law requiring you to
reduce your carbon footprint may necessitate the review of your production or supply chain
management strategies in order to comply with the new requirements.
Technological Forces in Strategic Management, the company may change strategies due to
the availability or lack of adequate technological capabilities. The acquisition of capital
resources, such as automated equipment and advanced machinery, may prompt your
organization to increase production volumes and adjust the supply chain functions.
Information technology trends also influence changes in strategic management. For example,
the growing influence of e-commerce may prompt your business to abandon brick-and-
mortar distribution strategies and embrace online distribution strategies.
Every successful organization must have a clear strategy in place. Therefore, the
following are the strategic management process;
Goal setting, the purpose of setting goals is to clarify the business vision, this is the
among the strategic management process whereby setting well defined goals should clarify
your organization. This stage comprises three important tasks; identifying your short-term
and long-term objectives, determining the process of accomplishing your goals and
customizing the process for the staff. The objectives should be realistic, detailed and in line
with the values. For the final task, is to consider writing a mission statement that clearly
communicates the objectives to the shareholders and staff.
Situation analysis, once there is vision of the company gather the information that will
help to accomplish the goals. A good place to start is by doing simple analysis, which are
Strength, in which a company is good at doing or characteristics that give it enhanced
competitive example. physical assets, intangible assets etc. Weaknesses the what company
lacks, does poorly or condition that puts it at a disadvantage, weakness represents a
company’s competitive ability. Opportunity, an opportunity is that which enable a company
to excel in achieving its objectives.it is external to organization and can be source of growth,
profitability, or gaining a competitive advantage.
Evaluation and control, any successful evaluation of the strategy begins with the
definition of parameters to be measured. These parameters should reflect the goals
established in stage 1. Determine your progress by measuring actual result versus the plan.
Monitoring internal and external problems will also allow to react to any substantial change
in your business environment. If there is determination of the strategy which is not moving
the company toward its goal, take corrective action, repeat the strategic management process.,
this is because internal and external issues are constantly evolving all data obtained at this
stage should be kept to help with any future strategy, also at the evaluation the key thing is
the feasibility of the strategy. Check if the resource required to implement the strategy are
available, can be developed or obtained. Resources include funding, people, time and
information.
Lamb, Robert, Boyden: competitive strategic management. Englewood cliffs, NJ: prentice-
Hall, 1984.
Stacey, R.D. (1995). “The science of complexity-an alternative perspective for strategic
change process”. Strategic management journal.