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the same as with postal surveys – the mailing should feature an explanatory 
le。。er and incentives for the recipient to ‘open’ the questionnaire。 
There are the basic rules for good questionnaire design; however the 
questions are to be administered: 
1。 Keep the number of questions to a minimum。 
2。 Keep the questions simple! Answers should be either ‘Yes/No/Don’t 
know’ or offer at least four alternatives。 
3。 Avoid ambiguity – make sure the respondent really understands the 
question (avoid ‘generally’; ‘usually’; ‘regularly’)。 
4。 Seek factual answers; avoid opinions。 
5。 Make sure that at the beginning you have a cut…out question to eliminate 
unsuitable respondents (eg those who never use the product/service)。 
6。 At the end; make sure you have an identifying question to show the 
cross…section of respondents。 
Sample size is vital if reliance is to be placed on survey data。 How to calculate 
the appropriate sample size is explained in Chapter 11 in the section 
headed ‘Survey sample size’。
Marketing 119 
Testing the market 
The ultimate form of market research is to find some real customers to 
buy and use your product or service before you spend too much time and 
money in se。。ing up。 The ideal way to do this is to sell into a limited area or 
a small section of your market。 In that way; if things don’t quite work out as 
you expect; you won’t have upset too many people。 
This may involve buying in a small quantity of product; as you need 
to fulfil the order in order to fully test your ideas。 Once you have found a 
small number of people who are happy with your product; price; delivery/ 
execution and have paid up; you can proceed with a bit more confidence 
than if all your ideas are just on paper。 
Pick potential customers whose demand is likely to be small and easy to 
meet。 For example; if you are going to run a bookkeeping business; select 
5 to 10 small businesses from an area reasonably close to home and make 
your pitch。 The same approach would work with a gardening; baby…si。。ing 
or any other service…related venture。 It’s a li。。le more difficult with products; 
but you could buy in a small quantity of similar items from a petitor or 
make up a trial batch yourself。
Organizational 
behaviour 
。 Structural options 
。 Line and staff relationships 
。 Building and leading teams 
。 Understanding motivation 
。 Managing people effectively 
。 Directors’ roles 
。 Handling change 
Organizational behaviour; usually shortened to OB; is the whole rather 
amorphous area that deals with people; why they behave the way they 
do and how to create and manage an organization that can achieve the 
goals set for the business。 As one cynical CEO summarized the task: ‘to get 
people to do what I want them to do because they want to do it’。 
The single most prevalent reason for a strategy failing lies in its implementation; 
the analysis and planning behind a proposed course of action 
are rarely the root of the problem。 That is more likely to lie in the selection 
of the people to implement strategy; their management; motivation; rewards 
and the way in which they are organized and led。 Stated like that; 
it sounds a fairly simple task。 Just work your way through those headings 
and any MBA worth their salt should be able to get the desired results。 
Unfortunately; people both individually and collectively are rarely malleable 
and infinitely variable in their likely responses to situations。 The 
famous German military strategist Moltke’s statement that ‘No campaign 
plan survives first contact with the enemy’ applies here if the word enemy 
is replaced by organization。 
However; by understanding and applying a number of principles and 
concepts on the typical MBA syllabus you can improve an organization’s 
chances of achieving its objectives。 
4
Organizational Behaviour 121 
STRATEGY VS STRUCTURE; PEOPLE AND 
SYSTEMS 
This is the ‘which came first’ question akin to that of the chicken and the 
egg。 Unless you are starting up an organization on a greenfield site with no 
people other than yourself and only a pile of cash; every business situation 
involves some promise between the ideal and the possible when it 
es to people and structures。 
The theory is clear。 An organization’s strategy; itself a product of its 
business environment; determines the shape of the organization’s structure; 
the sort of people it will employ and how they will be managed; controlled 
and rewarded。 But in the real world the business environment is 
constantly changing as the economy fluctuates; petitors e and go; 
and consumer needs; desires and aspirations alter。 In any event a business 
is limited in its freedom of action。 However violent and essential a change 
in strategy; a business will rarely be free to hire and fire staff at will simply 
to change direction。 The exception is in the case of a plete closure or 
withdrawal from an activity such as that of Marks & Spencer’s controversial 
closure of its French outlets in 2001。 This move was considered vital to the 
survival of the whole business and despite May Day protests in France the 
pany’s shares rose 7 per cent on the announcement。 
Figure 4。1 is a useful aid to understanding how to approach OB。 The 
concentric circles are a metaphor to remind us of the circular nature of 
subject。 You can’t just tackle one area without having an impact on others。 
Figure 4。1 A framework for understanding organizational behaviour 
Environment 
Strategy 
People 
Recruit 
Motivate 
Manage 
Lead 
Structure 
Organization 
Teams 
Systems 
Reward 
Appraise 
Develop 
Change
122 The Thirty…Day MBA 
STRUCTURES – THE OPTIONS 
Just as the skeleton is the structure that holds a body together; a business 
too has its framework。 The goal of any framework is to provide some 
boundaries while at the same time allowing the whole ‘body’ flexibility to 
respond in order to go about its business。 While human bodies keep a very 
similar skeleton to the one they start out with; a business has a number of 
very different organizational structures to choose from。 Also; it is unlikely 
that any one structure will be appropriate throughout an organization’s 
life。 
For an organization a structure has to perform the following functions: 
。 show who is responsible for what and to whom; 
。 define roles and responsibilities; 
。 establish munication and control mechanisms; 
。 lay out the ground rules for cooperation between all parts of the 
organization; 
。 set out the hierarchy of authority; power and decision making。 
There are two major building blocks used in shaping an organization’s 
structure beyond the level of the individual: the organizational chart and 
team position。 
Pictorial methods of describing how organizations work have been 
around for centuries。 Both the Roman and Prussian armies had descriptions 
of their hierarchical structures and the la。。er incorporated line and 
staff relationships。 There is also some evidence that the ancient Egyptians 
documented their methods for organizing and dividing workers on major 
projects such as the pyramids。 However; Daniel C McCallum is generally 
credited with developing the first systematic set of organizational charts in 
1855; to organize railroad building on an efficient basis。 The trigger for his 
innovation was the discovery that the building costs per mile of track did 
not drop with the length of line being built; contrary to logic。 The inefficiencies 
were being caused by poor organization。 
Basic hierarchical organization 
This simple structure has every member or part of the organization reporting 
in to one person (Figure 4。2)。 It works well when the organization is 
small; decisions are simple or routine and munications are easy。 
This basic structure can be based around one of several groupings; 
including: 
。 functions such as marketing or manufacturing; 
。 geography such as country or region;
Organizational Behaviour 123 
。 product; 
。 customer or market segment such as trade; consumers; new accounts 
or key accounts。 
Span of control 
The number of people a manager can have reporting to them in a hierarchy 
is governed by the span of control。 Few people reporting and the span of 
control is termed as narrow; and more as wide。 
A narrow span of control means that any one manager has fewer people 
reporting to them; so munications should be be。。er and control easier。 
However; as the organization grows; that usually means creating more and 
more layers of management; so negating any earlier efficiency。 
A wide span of control; also known as a flat management structure; involves 
having many people or units reporting to one person。 This usually 
means having fewer layers of management; but it does call for a greater 
level of skill from those doing the managing。 The nature of the tasks being 
carried out by subordinates will limit the capacity to run a flat organization。 
For example; a regional manager responsible for identical units such as 
branches of a supermarket chain; supported by good and well…developed 
control systems; may be able to have 10 or more direct reports。 But if the 
organization prises very different types of unit; for example retail outlets; 
central bakeries; garages; factories; accounts departments and sales 
teams; the ability of any one manager to handle that diversity will be 
limited。 
A further factor to take into account is the skill level of both managers 
and managed。 A higher…skilled workforce can operate with a wider span of 
control as they will need less supervision and a higher…skilled manager can 
control a greater number of staff。 
Line and staff organization 
One way to keep an organization structure flat as the enterprise gets bigger 
and more plex is to introduce staff functions that take over some of 
the mon duties of unit managers。 For example; a production manager 
Figure 4。2 Basic hierarchical organization chart 
Employee 1 
(Or Unit 1) 
Employee 2 
(Or Unit 2) 
Employee 3 
(Or Unit 3) 
Top 
Management
124 The Thirty…Day MBA 
could probably handle their own recruitment; selection and training of staff 
while t

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