Ways in which the Public Sector complements the efforts of the Private Sector

• Provision of public goods to facilitate the operations of the private sector.
• Public Sector provides services for the public good. For example licences, permits etc. that facilitate the business of the Private Sector.
• Public Sector fees are relatively lower because they can take advantage of economies of scale to provide goods and services. The Private Sector benefits from the low fees charged.
• Borrowing by the Private Sector backed by governments guarantee is relatively cheaper.
• Public Sector operations can serve more people than the Private Sector. For example the provision of health and education services could be provided by the Public Sector to areas where the Private Sector would find unprofitable.

Characteristics of Public Sector that make them bureaucratic

• Accountability. Transactions have to necessarily go through too many authorisation and approval processes because public funds are used in running public organizations.
• The strictly impersonal nature of public organizations make decision making fatally slow.
• Constraints on public funds make it difficult for the Public Sector to provide critical services to the public. They have to wait to receive their budget allocations before services could be rendered.
• Services rendered by the Public Service is without the profit motive and so they end up being underfunded. This creates delays in service delivery.
• There are several levels of control, checks and authorisation requirements that results in delays in processing of transactions.

Overt aspects are the formal aspects of an organisation. These are financial
resources, products, custo mers, formal structure, technology, policies,
procedures and rules. These are overt because they are visible (even to
outsiders and new joiners), documented, controlled through formal
management processes and explicitly designed to support the mission of the
organisation.

Covert aspects are the behavioural aspects of culture. These include beliefs,
assumptions and attitudes. Others are informal communication patterns,
informal team processes, informal influence and leadership, political
behaviour and interpersonal relations. These are no t directly u n der the control
of management, not always supportive of the organisation s mission, and not
readily visible to outsiders or new joiners.

A company’s strong culture will have both positive and negative effects on
organisational performance. Positive influences include:

• Identity
  A strong culture provides employees with a sense of identity and belonging. This can be motivational and impact positively on staff retention.
• Communication
  Culture can facilitate good communication and coordination.
• Reduced differences
  Differences between people, groups and members of staff within Invest Africa will be reduced.
• Regulation
  A strong culture will regulate behaviours and norms. Dominant values and attitudes will be reinforced.
• Image
  A strong culture will reflect the philosophy of the founder or the dominant group. This will provide an image and identity to the company affecting the way it is perceived externally.
• Strategy
  This has the potential to differentiate Invest Africa from its competitors and could be the basis for developing a competitive advantage.
  A strong culture will directly impact on the strategy of the organisation and its ability to react to change. Negative influences of Invest Africa strong culture include:
• Inflexibility
  Strong cultures can be deeply ingrained and difficult to change.
• Blinkered
  It could create a blinkered view which may prevent Invest Africa from learning new skills or taking on new challenges.
• Inappropriate values
  If the culture of InvestAfrica is based on inappropriate values it could cause the performance of the organisation to deteriorate. The effectiveness can also be hindered if Invest Africa s strong culture does not have positive attributes in relation to stakeholders and change.
• Conflict
  Strong cultures have the potential to cause conflict when the organisation is in contact with another. This is of particular concern for InvestAfrica Company given that future developments may involve a merger with another company. If conflict does arise it will significantly reduce the likelihood of that merger being successful.
• Environment
  If InvestAfrica Company’s strong culture is not aligned with the environment in which it operates it is unlikely to succeed.

Roles that the new system may play in the company are:

• Planning future operations.
• Recording transactions.
• Performance measurement (comparing actual results against plans).
• To help senior management make decisions

Features of enterprise wide system

• Enterprise wide systems are designed to co ordinate all business functions,
  resources and information.
• It minimizes duplication of information.
• Under an enterprise wide system each business area is provided with a system
  that fulfils its needs . However each module shares a common database that is
  the basis of all the information within the organisation.

Testing should include:

• User acceptance testing to establish whether user acceptance criteria are met.
• Realistic tests re alistic data and environment.
• Contrived tests how the system copes with unusual and unexpected events.
• Volume tests ensure the system can cope with the expected number of
  transactions, and more.

Benefits of information systems based around a database include:

• Reduced data duplication/data redundancy. Having a centralised pool of data
  reduces the chance of data duplication and redundancy. For example, stock
  and customer information are held and maintained centrally.
• Provision of tailored reports. Databases should facilitate more flexible
  reporting. For example, procurement managers should be able to produce
  reports on slow moving products by different types of supplier.
• Ease of access to information for staff. Databases should ena ble staff to find
  data quickly (eg to answer customer queries).
• Reduced IT maintenance costs. As data is maintained centrally, maintenance
  (eg checking data accuracy, adding new types of data) should be an easier.
• Enhanced security.

The new system will:

• Change the way trainee accountants work.
• Compatible software allows workers to share ideas electronically. Change the way the company’s services are provided.
• As the Trainee Accountants can share ideas electronically, they no longer need to work together at the client’s premises.
                                                                                                                                                                                  (Any 2 points)

Virtual teams are interconnected groups of people who may not be present in the same office or organisation but who:

• Share information and tasks.
• Make joint decisions.
• Fulfil the collaborative function of a team.

A direct approach may be preferred because:

• To overcome a reluctance to ‘let the old system go.
• It is cheaper and more convenient than running two systems.
• The change may be implemented before any objection is encountered.

Business strategy is a practical plan for achieving an organization’s mission and objectives. Organizational structure is the formal layout of a company’s hierarchy. Both strategy and structure are crucial elements of doing business, and even companies that do not have formal strategies and structures likely still have both in one form or another.

A company’s organizational structure must support its strategy. Employees at all levels of the company must be empowered to effectively complete the tasks necessary to achieve organizational objectives, and company structure can aid or hinder employees in their roles. Structure can also dictate the means by which strategies are crafted and implemented.

A centralised organization is one where core important decisions are taken by those at a higher level of authority. All important decisions are routed through this channel and are taken by those who are in a position to look at things from a broader perspective and have gained a lot of knowledge and experience over the years. After the decision is taken, it is communicated to the lower level employees who are expected to follow the orders.
This kind of structure depends heavily on certain key people to conceptualise and implement certain key decisions. This needn’t mean that there is just one person making all the decisions in the organization. People at different levels are authorised but, unlike decentralised organizations, there is less team based decision making and more of individual decision making.
A decentralised organization is one where the decision making authority is not solely in the hands of a particular group or figure but with multiple people at multiple levels of the hierarchy.
In this type of organization, most of the decisions are made by middle level or lower level employees rather than being made by the top management, as is the case with centralised organizations.

• Decisions can be co-ordinated more easily, and management have better control over decisions.
• Goal congruence. Decisions taken carefully should be based on overall objectives, whereas decentralised decisions may be influenced by short-term or local objectives of the people making the decisions.
• Standardisation. For example, in any country McDonald’s customers expect to find standard menus and pricing. If local managers were allowed to take decision about changing menus or prices, this could undermine the business model.
• Resource allocation. Centralised decision making should allow resource usage to be coordinated effectively between different functions and divisions, based on overall corporate objectives.
• Economies of scale. For example, companies might be able to get bulk discounts if they coordinate all their purchasing requirements and make a single order. Similarly, the corporate centre may be able to obtain cheaper bank loans and finance than (which have less assets to secure a loan against).
• Speed of decision making. For example, when a quick decision is required in response to a crisis, it may not be practical to involve local managers.                                                                                                                                          (Any 4 points)

• Centralization Is Unsuitable For Large Organization
  Centralization is impractical in large business organization having various branches in different locations. It is difficult to communicate managerial decisions to different operating levels in the management hierarchy. Top level managers cannot effectively supervise and control all the activities of the organization.
• Manager Is Overburdened
  In centralization, top managers are over-burdened with authority and responsibility while managing each and every activity of the organization. He/she cannot devote sufficient time in other major issues. It tends to decrease working efficiency of the organization.
• Possibility Of Power Misuse
  Centralization of authority at the top level may result in under-utilization of power. Top level managers may exercise their powers on the basis of their personal judgment. This may lead to misuse of authority if the managers lack proper skills and ability.
• Low Morale/Motivation
  In centralization, middle and lower level managers feel uncomfortable while performing the assigned task. They do not have the required authority to deal with problems effectively. They do not get any opportunity to show and develop their personality. The lack of motivation tends to affect the morale of subordinates.
• Lack Of Environmental Adaptation
  Business environment is dynamic and therefore, it changes according to time. In business, it is essential to take quick decisions to resolve problems of concerned departments or branches. Centralization is not applicable in dynamic environment as flexibility will not come promptly from the top level.
• Inappropriate For Routine Decisions
  In centralization, top level managers may be compelled to devote maximum time in taking routine decisions. Therefore, they cannot devote more time in non-programmed decisions. This will have a negative impact on the long term performance of the organization.                                                                                                                                                      (Any 4 points)

Leadership involves: establishing a clear vision, sharing that vision with others so that they will follow willingly, providing the information, knowledge and methods to realize that vision, and coordinating and balancing the conflicting interests of all members and stakeholders.

• Trait Theory of Leadership
  The trait theory of leadership suggested that there are certain personal traits or qualities which successful leaders possess. In order words, leaders are thought to be born and not made. Some of these traits are fairness, ambition, integrity and objectivity.
• Style Theory of Leadership
  The assumption underlying this theory of leadership is that successful leaders adopt a given management style in all circumstances. Such leaders could be wholly task-focused in which case they pay greater attention to the performance of assigned tasks or human-centred where they demonstrate supportive, relational leadership behaviors.

• Contingency Theory of Leadership
  This theory of leadership sees effective leadership as being dependent on a number of variable or contingent factors. It is based on the assumption that there is no one best way to lead that will fit all situations and that the behavior of an effective leader at any given time deplanes on the environment in which he finds himself.                                               (2 marks each)

• Technical Skills
  As the name of these skills tells us, they give the manager’s knowledge and ability to use different techniques to achieve what they want to achieve. Technical skills are not related only to machines, production tools or other equipment, but also they are skills that will be required to increase sales, design different types of products and services, market the products and services, etc.
  For example, let’s take an individual who works in the sales department and has highly developed sales skills achieved through education and experience in his department or the same departments in different organizations. Because of these skills that he possesses, this person can be a perfect solution to become a sales manager. This is the best solution because he has excellent technical skills related to the sales department.
  On the other hand, the person who becomes sales manager will start to build his next type of required skills. It is because if his task until now was only to work with the customers as a sales representative, now he will need to work with employees in the sales department in addition to the work with customers.
• Conceptual Skills
  Conceptual skills present knowledge or ability of a manager for more abstract thinking. That means he can easily see the whole through analysis and diagnosis of different states in such a way they can predict the future of the business or department as a whole. At a first glance, a company includes more business elements or functions as selling, marketing, finance and production,
  Conceptual skills are vital for top managers, less critical for mid-level managers, and not required for first-level managers. As we go from a bottom of the managerial hierarchy to the top, the importance of these skills will rise.
• Human or Interpersonal Managerial Skills
  Human or interpersonal management skills present a manager’s knowledge and ability to work with people. One of the most critical management tasks is to work with people. Without people, there will not be a need for the existence of management and managers.
  These skills will enable managers to become leaders and motivate employees for better accomplishments. Also, they will help them to make more effective use of human potential in the company. Simply, they are the essential skills for managers. Interpersonal management skills are essential for all hierarchical levels in the company.
• Problem solving and decision-making
  As a manager you’ll be tasked with spotting and solving problems on daily basis. This requires outstanding attention to detail and the ability to remain calm under pressure. To ensure that your team is productive and that the workflow runs smoothly you’ll have to think on your feet when problems arise. Creative thinking will help you to come up with innovative solutions that minimise the impact on your team and the business as a whole.
  Thinking on your feet also comes in useful when you have to make a snap decision about how to successfully complete a task or meet a business goal. Being able to quickly weigh up the pros and cons of a situation and make an informed decision is essential.
• Commercial awareness
  This skill is in huge demand among business employers, in fact according to recruiters commercial awareness is something that the majority of graduates applying for management roles lack.

If you want to progress to management level it is imperative that you have an understanding of the marketplace in which a business operates and of what makes a business successful. To demonstrate this you’ll need to show that you:
o are aware of the organisation’s mission and aims
o have an understanding of the sector that the company belongs to
o possess knowledge of political and economic issues affecting the business
o Know all about the company’s competitors.

• Mentoring
  As well as being business-focused decision-makers, managers also need to play a supportive role. If you’ve reached this senior level you have proven experience, knowledge and skills and it’s your job to pass this knowledge along and share your skills with other colleagues.
  This involves training and advising staff and building their confidence and skills. In a management position you’re charged with overseeing the continued professional development of all employees and will be the driving force behind the progression of team members.                                                                                                                                (Any 4 points)

Market segmentation is the subdivision of the market into distinct groups, each group made of homogenous members who react in a similar way to marketing activity (to a distinct marketing mix). Therefore, a different marketing approach (mix) can be devised for each market segment.

• Efficient use of marketing budget. By carefully segmenting the market, Top Furniture can target segments appropriately. This means it can apportion its marketing budget to each segment in proportion to the likely return it may receive from them. This will help maximise the return on its marketing spend. Akate Furniture Enterprise currently sells its range to the whole market and is therefore not using its marketing budget effectively. This is something that can be resolved by market segmentation.
• Identify new opportunities. Segmentation will enable Akate Furniture Enterprise to understand the needs of its customers better. Understanding these needs may identify gaps in the market or other opportunities that Top Furniture may be able to exploit.
• Efficient use of resources. By having a better understanding the needs of its customers, Akate Furniture Enterprise can make changes to its products, for example in materials and features. Meeting the needs of customers and not providing any unnecessary features promotes the efficient use of raw materials and other resources.
• Competitive advantage. Akate Furniture Enterprise can look to dominate particular market segments. This will not only maximise the profit from each segment, but also help reduce the market share of its competitors, thereby forcing them out of the market.
• Better customer relations. Top Furniture may segment the market geographically and switch its focus away from the north where it has difficulty in fulfilling its obligations. This will help bring its attention to the customers that it can serve more productively and therefore improve its relationship with them.                                                                            (3 marks each)

A well-motivated workforce can provide several advantages:

• Increased productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price.
• Lower levels of absenteeism as the employees are content with their working lives.
• Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs.
• Improved industrial relations with trade unions.
• Contented workers give the firm a good reputation as an employer so making it easier to recruit the best workers.
• Motivated employees are likely to improve product quality or the customer service associated with a product, etc
                                                                                                                                                                                              (Any 2)

The steps in the disciplinary procedure generally follow graduated steps including a verbal warning, written warning, final written warning, and dismissal. However, in cases of gross or serious misconduct it is permissible to start at stage 4 of the procedure.
However, other sanctions apart from the nuclear option of dismissal should be considered by the employer. Alternatives might include a transfer to a different part of the workplace, different role, or demotion.
Keep in mind that an employee can be suspended on pay pending investigation but would only be suspended without pay pending an appeal of a dismissal.
Stage 1-Verbal/Informal warning
Generally an employee should receive a verbal warning for a first transgression.
Even though the employer is “only” giving a verbal warning, it is still part of a formal disciplinary process and the principles of natural justice, fair procedures, and equity/fairness would apply at all times. This would involve a meeting with the employee at which the employee could bring a colleague or other representative. There is no right to bring a legal representative, unless the employer agrees.
This may be a trade union representative, even though the employer may not formally recognise or engage with the union. His role will be as a minute taker and witness, not an advocate or spokesperson. At the meeting the employee should be advised of what the problem is and invited to respond and explain his actions. There should be no rush to judgement by the employer as the meeting is investigatory. Following the meeting a confirmatory letter should be given to the employee. This letter confirms that the employee has been given a verbal/oral warning. It should also contain the improvements required of the employee in respect of the behaviour which led to the warning and the time frame within which the improvement must be made. This letter should also state that failure to improve will lead to the 2nd stage of the disciplinary procedure and ultimately dismissal. It should also state the time period for which it will remain on the employee’s file, after which it will be removed. 3 months would be a reasonable period for this 1st verbal warning to stay on file, but it could remain for 6 months.
If an employee was suspended with pay pending an investigation it is vital that he knows how long the suspension is to last and the investigation must be held within a reasonable time frame. “Justice delayed is justice denied”. Once this disciplinary procedure has started the employer should assist the employee to improve conduct or performance, whichever was the source of the problem in the 1st place.
The employer should record the details of this 3 month monitoring period and retraining or relocation should be considered, if possible and reasonable. However, if the employee fails to improve or there is a repeat of the activity that caused the oral warning in the 1st place the employer can then issue a first written warning.
Stage 2-First Written Warning
The 1st written warning can be issued within the period of time advised for monitoring after the verbal warning, provided there is no improvement in conduct or performance. Before issuing it, the employee should be invited to another meeting, told of the transgression, and given the opportunity to respond. The written warning will then be issued and last for another 3 months. This warning should also clearly set out the nature of the problem, suggest solutions such as retraining, and advise of the possible sanctions (including dismissal) if no improvement is observed within the 3 months.
The employer should again afford all reasonable assistance to the employee to help him improve conduct and/or performance. However the employer must be mindful of his duty of care to other employees also.
Stage 3-Second Written Warning
If the required improvement is not forthcoming within the 3 month period after the 1st written warning then a 2nd written warning may be issued. This is entirely a matter for the employer and it is common for many employers to only issue a 1st and final written warning. This warning is done in a similar fashion to the other 2 warnings referred to above but you would consider giving a 6 month monitoring period to allow improvement.
Stage 4-Final Written Warning
If the required improvement is not happening then a final written warning would be issued with a 12 month monitoring period.
The letter confirming this warning will advise that if there is no improvement or if the bad behaviour/performance is repeated then dismissal will occur. This warning letter will be the final one prior to dismissal so it is important that it is well drafted as it will be scrutinised closely by the employee and probably his legal advisor. This letter should only refer to the matters which have been the subject of the disciplinary procedure to date and not other matters which have never been put to the employee.

Stage 5: Suspension without pay
Intended to signal seriousness and get employee to think over commitment to changing/improving behavior.
May be used for very serious first offenses, such as:
Gross insubordination
Substance abuse on the job
Others (as outlined in your discipline policy)
Review company policy and procedure.
Stage 6-Dismissal or action short of dismissal
If there is no improvement after the final written warning then dismissal is the likely outcome. A meeting should be called and the employee and his representative invited.
The employer should remind the employee of the behaviour/conduct that has led to this point, the repeated transgressions/failure to improve performance sufficiently, and that the dismissal is in accordance with the disciplinary procedure.
The employee should be given the opportunity to appeal within 14 days. He should also be given a letter confirming the dismissal and the right to appeal, the time period for appeal, and who to appeal to.              (2 marks for every step= 12 marks)

In general, training faces an immediate challenge and teaches the knowledge or skills needed by company employees in a short period of time (one day, one week, several months). It is all about “here and now”. It could be a course to improve the communication skills of employees, a conference to explain the protocol for returning a product or a class to use the Excel program.
On the other hand, development focuses on the long term. Human resource managers propose a strategy to put in place over several months or years, comprising a set of initiatives that are expected to bear fruit over a long period of time. It is a continuous process in which you are trying to develop professionals in their next step or their next position of responsibility.

• Job position vs. Professional career
  Due to its precision and commitment to the short term, training is designed for a specific job position. It seeks to provide professionals with tools and skills, taking into account the work that they will be doing at the company.
  However, development focuses on the person: its objective is to get the best out of each employee in the company, identifying their interests and the fields in which they can more easily progress. If training focuses on a job position, development puts the emphasis on building a successful professional career.
• Specific objectives vs. Open objectives
  In training, the objectives are specific and well defined: learning how to use a program, obtaining a certain personal skill or teaching the new protocols put in place by the company.
  When we talk about development however, the objectives are always much broader and can cover all types of knowledge and skills. Compared to training, development is less tangible and often focuses on philosophical issues, changing habits and improving skills. Not only that, but objectives can be changed over time and completed according to the new demands of the market or the company.
• Group vs. Individual

Training tends to be an initiative designed by a company and taught by a tutor or expert. The company pays for the expenses and organizes the courses, decides what sort of tools its employees should use, and sets the guidelines to follow in all the training activities. These initiatives often focus on a group of employees (a department, people who have recently joined the company, etc.).

However, with development, the emphasis is put on the individual. Development programs are often personalized and the person who is ultimately responsible is the employee.