Study Manual For: Hajah Sobariah Awang Mukhtar Faculty of Information Management Uitm, Puncak Perdana Shah Alam

STUDY MANUAL FOR
PRINCIPLES OF MANAGEMENT
(IMD 104)
HAJAH SOBARIAH AWANG MUKHTAR

Faculty of information Management UiTM,
Puncak Perdana
Shah Alam
Overview of the course :
Today management world has been developed tremendously. Organization place

heavy demand’s on effective managerial skills to achieve their goals. Changes
happens result from pressures on supply and demand, explosion of quality
revolution, human resource development and the globalization of the economy that
leads to competitive pressures and competition.
This Manual was prepared to familiarize you with the field of management,
environment changes and concepts and approaches of management. This course
will provide an exposure for the student to the principles of management as they
can applied and practice to the real world .
CONTENTS PAGE
1. Introduction to Management
2. Evolution of Management theories
3. Planning
4. Organizing
5. Controlling
6. Managing Human Resource
7. Total Quality Management
8. Decision making
9. Leadership
10. Motivation
11. Communication
TEXT BOOK AND REFERENCES :

Main Textbooks :
1. Robbins, Stephen P. and Decenzo david A. (2001). Fundalmental of

Management : Essential concepts and application ( 3rd ed). New
Jersey: Pretice Hall
2. Stoner, A. F. Freeman, R. Edward and Gilbert Junior, Daniel, R

“ Management “ , Prentice Hall.
3. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice
Hall, New Jersey,1993.
3. Schermerhorn, John R., Management for Productivity, 2nd edn, John

Wiley and Sons.
4. Institut Pengurusan Malaysia 1999. Management in Malaysia :Print

Resources Sdn. Bhd
OBJECTIVES OF THIS COURSE ( CO)
1. Ability to understand the scope of management theories and practices.

2. Ability to identify and familiar with various environments that must be
considered in managing people in an organization.
3. Ability to recognize and apply the roles of a manager that have effect on the
overall goals of the organization.
4. Ability to be a good and success manager.
CHAPTER ONE OVERVIEW
INTRODUCTION TO MANAGEMENT
1.0 WHY WE STUDY MANAGEMENT
1.1 DEFINATION OF MANAGEMENT, ORGANIZATION AND MANAGERS.
1.2 MEASURING MANAGERIAL PERFORMANCE
1.3 MANAGEMENT PROCESS
1.4 LEVELS OF MANAGEMENT
1.5 MANAGERIAL SKILL
1.6 MANAGERIAL ROLES
1.7 MANAGERIAL ACTIVITIES
1.8 THE CHALLENGE OF MANAGEMENT
Learning objectives
After completing this chapter, you should be able to :
1. Define what is management
2. Familiarize with the different types of organizations.
3. Explain the levels of management and management functions
4. Know the different types of managerial roles and activities.
1.0 WHY WE STUDY MANAGEMENT ?
 To enhance the understanding of events/ activities, challenges and skills that will give
Meaning to our future work experience and careers as managers or other professional careers we
may choose.
 Make us become effective manager who will be able to help the organization achieve a high
level of performance through the utilization of its human and material resources.
 Equip ourselves with effective management theories and practices that can be applied to all types
of organization and any occupational settings we may choose to be in the future.
 Make us to become effective managers who will be able to detect and locate problems to be
solve, thus making good decision about appropriate solution and utilizing organizational
resources effectively to implement these solutions.
 Enable us to assess the future, make plans for it, thus acting as good planners.
 To be responsible and accountable for employees to be in the same track towards

accomplishment of organizational goals.
1.1 DEFINITION OF MANAGEMENTS, ORGANIZATION AND MANAGERS.
a) MANAGEMENT:
Earlier definition by Mary Parker Follet – Management scholar as:
“ The art of getting things done through people”
Stoner
“The process of planning, organizing, leading and controlling the efforts of an
organization members and of using all other organizational resources to achieve stated
organizational goal”.
Holt
“ The process of planning, organizing, leading and controlling resources in an
organizational
b) ORGANIZATION:
Is a social unit in which two or more people interact to achieve a common goal or a set of
goal ( stoner) or
As a collection of people working together in a division of labor to achieve a common
purpose.( Schermerhon)
The structure of relationships that exists when two or more people mutually cooperate to
pursue common objectives (Holt).
TYPES OF ORGANIZATION:
1. Formal :
Consist of two or more people who are involve in a mutual effort with formal
authority to achieve common objectives ( Holt)
2. Informal organization
The shadow organization consist of two or more people involved in a mutual effort
without deliberate structures of authority or the necessity of the common objectives.
c) A MANAGER
A person in an organization who is responsible for work or performance of one or more
other persons ( Schermerhorn).
1.2 MANAGEMENT FUNCTIONS

Comprise of the activities of planning, organizing, leading and controlling.
Planning - Includes defining goals, setting objectives and

identifying alternatives, establishing strategy
And developing plans to coordinate activities.
Organizing - Concerned with assembling and allocating of resources
in order to achieve goals, The identification and
classification or required activities, the coordination of
the horizontal and vertical information flow, The
establishment of the organizational structure ( involve the
creation of units, departments) and the ascertainment of a
clear line of authority ( include reg ulation, rules
/
and
procedures. Aim for maximum efficiency and minimum
1.3 M waste.
Leading - Aim to get all member to move in one direction.

a) Includes motivating subordinates, directing
others, selecting the most effective communication
channels, and resolving conflicts.
l t
Controlling - Monitoring activities to ensure that they are being
accomplished as planned and correcting any
: significant deviations. Involves the setting of standards,
measurement of performance, correction of deviation , the
instituting of feedback and feed forward controls, the
budget and audit.
Achieving the organization’s stated purpose ( Goal Mission)
ANAGEMENT LEVELS
First line managers

The lowest leve in the organization is tha at which individuals are responsible
for the work of others. First- line or first level managers direct operating
employees only They do not supervise other managers. E.g of first – line
managers are the “ foreman” or production supervisor in a manufacturing plant,
the technical supervisor in a research department, and the clerical supervisor in a
large office.
b) Middle managers
Middle managers can include more than one level in an organization. Middle
managers direct the activities of lower – level managers and sometimes also those
of operating employees. Middle managers’ principles responsibilities are to direct
the activities that implement their organizations’ policies and to balance the
demand of their superiors with the capacity of their subordinates.
c) Top managers
A comparative small group of executives, the top management is responsible for
the overall management of the organization. It establishes operating policies and
guide the organization’s interactions with its environment. Responsible for with
the vision and long term objectives
Of the company.Typical titles of top managers are “ chief executives officer”, “
president”’ and “ senior vice- president”. Actual titles vary from one organization
to another.
MANAGER
By their level in the By the range of
organization organizational activities
they are responsible
-first line manager

- middle manager -functional manager
- Top manager - General manager
1.4 MANAGEMENT SKILLS
A manager’s job is diverse and complex, and requires a range skills. Three basic kind of
skills : technical, human and conceptual
Technical skill- Is the ability to use the procedures, techniques and knowledge of
a specialized field. Surgeons, engineer, musicians and
accountants.
Human skill - The ability to work with, understand and motivate other people
as individuals or in groups.
Conceptual skill – ability to coordinate and integrate all of an organization’s

Interests and activities.
Robert L.Katz. every manager needs all three but the amounts differ by their level in
organization.
FIRST-LINE MIDDLE TOP

MANAGEMENT MANAGEMENT MANAGEMENT
Conceptual
Conceptual Conceptual
Human
Human
Human
Technical Technical
Technical
1.5 MANAGERIAL ROLES
The specific classifications of managerial behavior.

According to Henry Mintzberg “ The nature of managerial work”’ managers perform ten
interrelated roles in the organization. Ten roles classified under three main roles :
They are :
1. Interpersonal roles
2. Informational roles
3. Decisional roles
4.
A. Interpersonal Roles
1. Figurehead - A department head performing ceremonial duties like
greeting visitors, signing legal documents etc.
2. Leader - A person who is responsible for hiring, training and

motivating subordinates in the organization.
3. Liaison - A person who perform and interacts with other people

outside the organization.
The interpersonal roles are to help the manager in managing organization smoothly.
B Informational Roles
1. Monitor - Manager continuously seeks information that can be use to

advantage
2. Disseminator - Information received internally or externally will be transmitted

to the subordinates ,
3. Spoke person - Information will be transmitted to people outside the

organization or unit
Thus, the informational roles are to assist the manager in receiving and communicating
information to make the right decision.
C. Decisional roles
1. entrepreneur - Manager tries to improved the unit and initiate the changes.
2. Disturbance handler - managers is responsible for corrective actions when the

organization faces important, unexpected disturbances.
3. Resources
1.6 allocate
Managerial - Manager is responsible in allocating the resources of the
Activities
organization
Managers are the people who deal with planning, organizing, leading and controlling.
4. Negotiator - Manager is responsible for representing the organization at
major negotiations .
Organizing
Determining what tasks are to Production workers were assigned to
Be done, who is to do them, different supervisor assembly lines / unit
how the tasks are to be grouped, many productions activities were
who reports to whom and where rearrange so as to achieve the goals
decisions are to be made. Specified.
3. Leading
Includes motivating, The production manager and supervisor
subordinates, directing, selecting have created a certain environment
the most effective where workers will want to produce
communication channels, and more so as to meet the target.
resolving conflicts.
4. Controlling
- monitoring activities to Since the sales of proton wira and
proton
Ensure that they are being Perdana exceed expectations
Accomplished as planned and management has add mare shifts to meet
Correcting any significant demand which will obviously increase
Deviations. the market share.
1.7 THE CHALLENGE OF MANAGEMENT
In an environment which is rapidly and constantly changing, managers have to face and
contend with a wide variety of challenges in pursuing their mission.
This challenges can and do influence the work of managers and affect the performance
of the organization as a whole.
If the managers do not closely monitor this challenges or changes in the organization
environment or fail to respond quickly to this changes, they are likely to find their
organization survival at a brink. Success goes to the managers who can recognize and
seize the opportunities.
The current challenges that are considered as the important factors that affect today business
environment are:
a) Globalization
Services or business not a local focus but must be global
b) Total Quality management

Comprehensive effort to enhance an organization product or service quality and
reduce cost.
c) Social responsibility and ethic

Focus on what an organization does affects the society in which ethics is the
discipline dealing with what is good and what is bad or right or wrong or with moral
duty or obligation.
d) Organizational restructuring and consolidation.

Concept where organization is slimming down or downsizing operations in order to
focus on resources and boost profits or decrease expenses. This trend will shape the
managers’ environment through the movement towards more streamlined, efficient
organization.
e) Re- engineering
A radical rethinking and re-designing organization’s processes to achieve drastic
improvements in performance ( Micheal Hammer)
f) Empowerment.
Current and poses another new challenge to management and organizational today.
An approach that involves granting employees the freedom and responsibility to do
their job as they think best, without constantly having to appeal to higher authorities
for permission. This will enable employees to make quick decision without getting
caught through the ladder of beauracracy so they will be able to serve customers
more effectively.
ACTIVITY
Can you define the following terms in your own words?
Management Organization manager Division of labor

Human skill Technical skill Conceptual skill
Management functions Management process planning
Organizing leading Effectiveness
Controlling efficiency Informational roles
Interpersonal roles Decisional roles Globalization
Re-engineering Total quality management Empowerment
Restructuring First-line managers Middle managers
Top managers Functional manager General manager
THINKING EXERCISE
1. What is management and what is organization ?
2. List and define four (4) management functions. Give examples of how they would be
used by the following person(s).
a) High School principal
b) Information professionals
3. Why we need to study management?
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed 2001,

Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
CHAPTER TWO OVERVIEW
EVOLUTION OF MANAGEMENT THEORIES

1. THE FORMATION OF MANAGEMENT PRACTICES
2. PRE CLASSICAL VIEW POINT
3. CLASSICAL VIEW POINT
4. BEHAVIORAL VIEWPOINT
5. QUANTITATIVE SCIENCE APPROACH
6. CONTEMPORARY VIEWPOINTS
Learning Objectives :
After completing this chapter student will be able to:
1. Understand the beginning of management practice
2. Explain several management theories .
3. Apply several techniques of management practice.
2.0 EVOLUTION OF MANAGEMENT THEORIES
Begin from ancient civilization. Organized management practice in 2000 B.C during
King Hummurabi. Great Pyramid in Egypt, 100,000 workers involve. Egyptian use
mathematical to organize labor, supervise to built within specified design and time.
China – Sun Tzu War, touching on strategy, planning and leadership use by military
strategy.
2.1 THE FORMATION OF MANAGEMENT PRACTICES
Management thought started with industrial revolution around 1800. This point saw the
invention and use of machinery setting up factories and creation of entrepreneurial capital
that finance the industries.
People think ways to improve efficiency and effectiveness.
2.1.1 Pre classical view point.
The factories became widespread and large number of employees need to be coordinated.
Therefore the challenge had motivated a number of individuals to think of ways and
means to run the factories more effectively.
Management theories can classified into 5 view points that are :
- Pre classical view point

- Classical view point
- Behavioral view point
- Quantitative view point
- System view point
PRE CLASSICAL CONTRIBUTORS
a) Robert Oven ( 1772-1858)

- A British entrepreneur and had a cotton mill in Scotland.
- 400-500 young children who worked 13 hrs (11hrs/2hrs off for meals)
- Concerned for the working and living condition of workers.
- Tried to upgrading streets, houses, sanitation, educational system.
b) Charles Barbage ( 1792-1871)

- Known as father of modern computing
- English mathematician, pioneered in computing and management.
- The idea of work specialization – work is divided into various jobs.
- Recognized specialized physical work as well as mental work
( specialists
- Invented a profit sharing plan _ a bonus for useful suggestions and portion
of wages that was dependent on factory profits.
- Ideas used in scanlon plan.
c) Henry R. Towne ( 1844-1942)

- A Mechanical engineer, president of Yale and Towne
Manufacturing company.
- Observed good engineering skills and good business skills were rarely
combined but both were equally important to run organization.
- Outlines the importance of management as a science
- Called for the development of management principles.
2.1.2 CLASSICAL VIWEPOINT
A perspective on management that emphasizes finding ways to manage work

efficiently. Three different approaches :
a) Scientific management
b) Bureaucratic management
c) Administrative management
1. SCIENTIFIC MANAGEMENT
Approach that emphasizes findings ways to manage work efficiently. Three
different approach are:
a) Frederick Winslow Taylor ) 1856-1915)

- The father of scientific management.
- Observed ‘ soldering ‘ by employees- working at less than full capacity
meaning feared that, Increasing their productivity would cause them or
others to lose jobs.
- Faulty wage system encourages workers to operate at slow pace.
- Generate rules handed down were inefficient.
Thus, developed science management :
1) Scientifically study each tasks and develop the best method for performing the
tasks.
2) Carefully select employees, train them by using scientifically developed method.
3) Cooperate fully with employees to ensure them using proper method.
4) Divide work and responsibility. Management will plan work method using
scientific principles and employees are responsible for executing the work
accordingly.
Frederick made use of time and motion study to substantiate his theories and increase
productivity. He divide work into different task. He redesigned the work, improve
production by his principle- management should develop a science for each tasks to be
performed.
b) Frank and Lilian Gilbreath ( 1868-1924)

- A brick layer
- Observed inefficiencies were handed down from the inexperienced
employees – propose motion studies to streamline the brick lying process.
- Lilian define scientific studies management must focus both analysis and
synthesis- which will help people to reach their maximum potential by
developing their skill and abilities.
b) Henry L Gantt (1861-1919)

- Gantt chart – graphic aid to planning, scheduling and control.
- Management tool that helps managers to schedule their work.
2.1.3 BUREAURATIC MANAGEMENT
a) Max Weber (1864-1920)

- German sociologist
- An approach that emphasizes the need for organizations to operate in a rational
manner. (Ideal organization where activities and division of labor were clear,
formal rules, procedures, people promoted on merit)
CHARACTERISTICS DESCRIPTION
Specialization of labor Jobs broken down into routine, so

that members know what is expected f rom
them thus, become more competent.
Formal rules and procedures to ensure uniformity and facilitate

coordination
Impersonality Rules, policies and sanctions are

applied uniformly without
prejudiced.
Well defined hierarchy Multiple level of positions, carefully

reporting relationships among
levels, provide supervision of lower
offices by higher offices
Career advancement based on Selection and promotion

based on the qualifications merit and
performance of members.
2.1.4 . ADMINISTRATIVE MANAGEMENT
An approach focuses on principles that can be used by managers to coordinate

the internal activities of organizations.
1. Henri Fayol (1841-1925)

-French industrialist
-Outlined a number of principles in management :
a) Diversion of work Will result in efficiencies applicable

to
both managerial and technical
functions.
b) Authority The right to give orders and power to

exact obedient. With authority comes
responsibilities.
c) Disciplines Necessary to run the organization, it

depends on the worthiness of its leaders.
d) Unity of command Employees should received orders
from one superior only.
e) Unity of direction Activities aimed at the same objective, one

plan and one person in charge.
f) Subordination of individual The interest of one group of employees

should not interest to general interest prevail
the interest of the organization.
g) Remuneration Compensation should be fair to both the

employee and employer.
h) Centralization The amount depends on situation.

Objectives is to optimum use of the
capabilities of personnel.
i) Scalar Chain A scalar chain of authority extends from the

top to bottom of an organization and defines
the communication path .Horizontal comm..
is also encourage as long as managers are
informed.
j) Order Materials in the right place, easy to retrieve

and facilitate activities. Select right
employee for the right place and right time.
k) Equity Employees treated with kindness and justice.
l) Stability of personnel High turn over is not rate will effect the
functioning tenure of organization.
m) Initiative managers encourage and develop

subordinates initiative to the fullest.
n) Esprit de corps Promoting team spirit unity in organization
2. Chester Barnard (1886-1961)

- Acceptance theory of authority- argues that authority does not depends as much
on persons of authority who give orders as on the willingness to comply of those
who receive orders.
- Employees willing to accept orders if they understand the communication, see the
communication consistent with the objectives of organization, feel that the actions
indicated are inline with their need and other employees and view themselves as
mentally and physically able to comply.
- Managers real powers come from the degree of acceptance of his workers.
2.1.5 BEHAVIORAL VIEWPOINT
Emphasizes the importance of attempting to understand the various factors hat affect
human behavior in organizations.
1) Early behaviorist:
Hogo Munsterberg ( 1863-1916)

Mary Parker Follet (1868 – 1933)
a) Hugo Munsterberg
Interested in identifying the conditions that would promote the individuals best
work and finding ways to influence workers to act in accord with management
interest.
b) Mary Parker Follet

Focus in group dynamic- employees work together.
- Power sharing
- Conflict resolution
- Integration of organizational system
d) Hawthorne studies
A group of studies done at Hawthorne plant of Western Electric

company.
1920s- early 1930s :
- Monitored the five women assembling electrical relays.
- Found that the women still increased their productivity period.
- Concluded that the increase of productivity was due to the change
of supervisory arrangement that had been made to facilitate the
experiment.
- = Hawthorne effect – improve performance, may be due the added
attention they receive from researchers, rather than specific factors been
tested.
2) Human Relation Movement Two theorist :
a) Abraham Maslow (1908-1970)

- Contribute to the theory of motivation “ hierarchy of needs”.
- Once has satisfy basic need before other can be taken care. This
Dictated people’s motivation to perform task.
i) Physiological need ( lowest)

ii) Safety
iii) Belongingness
iv) Esteem
v) Self Actualization
b. Douglas Mcgregor (1906-1954)
Theory X and Y – managers view their workers in one of the categories.

Theory X – assume employees are lazy, little ambition, focused on security needs.
Theory Y- Employees are capable of self control, have capacity to be creative,
higher level need are often unmet on job.
Conclusion – managers who assume best of their employees are rewarded with
committed and satisfied workers.
2. Behavioral Science Approach
Emphasizes scientific research as the basic for developing theories about human behavior
in organizations- can be use to establish practical guidelines for managers. It include
management, psychology, sociology, anthropology and economics.
- managers can be used as guides in assessing various situations and deciding
appropriate actions.
- Employees do better with attainable goals than without goals.
2.1.6 QUANTITATIVE MANAGEMENT VIEWPOINT
- Emerged as a major force in world war 2

- Focuses on the use of mathematics, statistics and information aids to support
managerial decision making and organizational effectiveness.
1. Management science/ operation research

2. Operation management
3. Management information systems
1. Management science/ operation research

Aimed at increase decision effectiveness through the use of sophisticated
mathematical models and statistical methods.
2. Operation Management
The function/ field of expertise for managing the product and delivery of an
organization’s products and services. E.g work scheduling, production planning,
inventory analysis.
3. Management Information System

The field of management that focuses on designing and implementing computer
based information systems for use by managements . e,g system that run raw data
to information- use by the organization.
2.1.7 CONTEMPORARY VIEWPOINTS
Major innovations in ways of thinking about management:

- System theory
- Contingency theories
1. System theory
An approach based on the assumption that organizations can be visualized as a
systems.
System – A set of interrelated parts that operate as a whole towards a common
goal.
Components of system
Inputs Human material, financial, equipment and informational

resources required to produce goods and services.
Transformations Managerial and Technological
Process Abilities: Planning, Organizing, Controlling and technology
–to converts inputs into outputs.
Feedback Information about result and organizational status relative to
the environment
Advantages of Systems approach :
- can be analyze at different levels.

- Providers a framework for assessing how well the various parts of an organization
interact to achieve common goal.
- Emphasize that a change in one part can affect others
- It considers how an organization interacts with its environment- better to operate
in open system.
Open System A system that operates in continual

interaction with its environment.
Closed system Does little or no interaction with
environment, receives little feedback.
2. Contingency Theories
- View point arguing that appropriate action depends on the particular parameters of
the situation.
- Identifies contingency principles to take action on the situation.
Successful companies operated differently depending on their technology category-

appropriate actions by managers depend on situation.
ACTIVITY :
1. How did Industrial Revolution Influence Management Practice?
2. Why did scientific management receive so much attention?. What were the
Hawthorne studies?
3. Why was the human relations movement important to management history?.
4. What is contingency approach to the study of Management?.
REFERENCES :

Prentice Hall.
CHAPTER THREE OVERVIEW
PLANNING
3.0 DEFINITIONS OF PLANNING AND PLANS
3.1 IMPORTANCE OF PLANNING IN ORGANIZATIONS
3.3 TYPES OF PLANS
3.4 GOALS
3.5 OBJECTIVES
3.6 OPERATIONALIZING
3.7 MANAGEMENT BY OBJECTIVE
3.8 STRATEGIC PLANNING
3.9 MISSION
3.10 BARRIERS IN PLANNING
Learning objectives:
After completing this chapter, student should be able to :
1. Explain the differences between planning and plans.
2. Explain the importance of planning
3. Explain what is “ goals” and “Objectives”
4. Apply various types of plans in planning
3.1 DEFINITION OF PLANNING AND PLANS
3.1.1 PLANNING
Important to all organization. It is important because organization are effected by change,
economic, politic and social. Planning allows us to be more certain and to plan for the
future.
A process that begins with objectives, defined strategies, policies and detailed
plans to achieve them. Planning establishes an organization to implement
decisions and includes a review of performance and feedback to introduce a new
planning cycle. (STEINER) OR
Planning may be broadly defined as “ a concept of executive action that embodies

the skill of anticipating and controlling the nature and direction of change “
( MC FARLAND) OR
“The process of determining in advance what should be accomplished and how it

should be realized”. ( MONDY) . Based upon the definition stated above, you can
infer that plans should be:
1. Formally prepared
2. Observable, factual, logical and realistic
Planning is a pervasive and continuous executive functions involving complexes

processes. Planning is an important managerial functions.
A manager must plan ahead to get things done through his subordinates
3.2 PLANS
According to Mondy, plans are statement of how objectives are to be accomplished.

As a manager, whether he is top manager or lower level manager, he has to plan.
Through planning, managers can inform their subordinates about the expectations of the
management and the objective of the organization can be realized.
Whatever activities are planned by the managers, there are several questions that need to
be asked to realize the organization’s goals.
1. What activities are required to accomplish the objectives?
2. When should these activities be carried out?
3. Who is responsible for doing what?
4. Where should the activities be carried out?
5. When should the action be completed?.
3.3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS
Why do managers in organizations have to plan?

Why do you have to plan?
What is this activity important to an organization?
The reasons are :
1. Planning helps to determine what opportunities there are to exploit. In other words, the
profitable alternatives that exist are identified through a planning process.
2. Planning enables us to identify the course of action by setting objectives and choosing
alternatives that will be most profitable.
3. Without proper plans much will be left to chance an therefore to risk.
4. Through plans, resources are efficiently and effectively utilized, thus resulting in saving.
5. What is really happening become more meaningful when we know what is really
expected.
6. It help to achieve goals and reduces random activities and needless

overlapping.
7. It provides for effective utilization of available facilities of an enterprise.
8. It assists a manager in attaining confident and aggressive leadership. By means of

planning, a manager successfully copes with his affairs and problems, rather than
allowing them to dilute and negate his efforts. Not to plan is to manage as a results of
events rather than by use of foresight influence an action.
9. Planning can point out the need for future changes. It can reveal opportunities for new
services. It guides management thinking to future desirable activities and spells out how
best to make the shift and what must be done to attain goals.
3.4 THE PURPOSE OF PLANNING
To help organization reach it objective

Minimize risk by reducing uncertainties
Increase the degree of organizational success
To establish a coordinated effort within organization
3.5 BENEFITS OF PLANNING
Better coordination
- Planning provides a foundation for the coordination of a broad range of
organizational activities.
- Plan helps to define the responsibilities of individuals and work groups and helps
coordinate their activities.
Focus on forward thinking

- The planning function forces managers to think a head and consider resource
needs and potential opportunities or threats that the organization may face in the
future.
Participatory work environment

- Successful planning requires the participation of a wide range of organizational
members.
More effective control system
- The implementation of the plan can be evaluate and progress toward the
achievement of performance objectives can be monitored.
- An organization’s plan provides a foundation for control of the process and

progress of the organization.
- Controls provide mechanism for ensuring that the organization is moving in the
right direction and making progress toward achieve its goals.
3.6 MAJOR COMPONENT OF PLANNING
3.6.1 GOALS:
- Future target or end result an organization wishes to achieve.

- Desire outcomes for individuals, groups and organizations.
- Provides the direction for all management decisions.
- Often called as “ foundation of planning”
Goal is one type of plan. Setting goals gives people a sense of control that leads the
action. Accomplishing goals leads to self- confident, Greater risk taking and more action.
So, what are goals?.
Goals are the ends toward which activities is aimed. Weather a firm new or old, large or
small it must set goals. Goals is organizations provide the ends towards which people
direct their efforts. Goals that are clearly established an properly communicated to
employees stand the best chance of being reached.
Well defined goals provide a solid basis for managers to organized, lead and control their
departments or company successfully.
3.6.2 Characteristics of setting goals are:
1. The goal must precise, specific and meaningful.

2. The goal must be clear and coordinated
3. The goal must be include long – term and short – term plans to be successful.
Example of a Goal:
The goal of every manager is to create a clear and verifiable objectives that facilitate
measurement of a effectiveness and efficiency of managerial actions.
3.6.3 TYPES OF GOAL :
1. Purpose
It is define as an intention to produce a specific good or service. E.g to develop,
manufacture and market pharmaceutical products that assure strong growth and
profitability.
2. Mission
It is the purpose or reason for the existence of an organization. The mission of an
organization’s is its products or services or markets or customers .e.g, marketing
pharmaceuticals products can be the mission of a drugs manufacturing company.
3. Objective
It is an estimated end result expected in the future. Objectives are established at
organizational, departmental or individual level. Increasing the accounts handled
from 20 to 25 percent within the next year, can be an objective of a salesman.
4. Strategy
It is the method of shaping a company’s future and involves determining the long
– run direction of the organization. A company may have the strategy diversifying
into related businesses within the next few years.
5. Resource allocation
It distributes money, personnel, plant and equipment, land and other tangible
means of production for various uses.
3.6.4 IMPORTANT OF GOAL
Provide sense of direction Reacting to environmental change. People in

organization bolster their motivation and gain a
source of inspiration that help to overcome the
inevitable obstacles they encounter.
Focus on effort Organization will establish priorities and make

a commitment about the way they will use their
scarce resources.
Guide our plan and Help to shape long term plan to make decision.
decisions
Goals helps evaluate our Become a standard performance that lets

process individuals and managers like evaluating their
progress.
3.6.5 SETTING A GOALS
1 MISSION Purpose or reason for the existence of an

organization ( product, services, markets and
customers)
2 OBJECTIVE It is estimated end result expected in the future. It si
established at organizational, departmental or
individual level.
3 STRATEGIES Method of shaping organization’s future and involves
determining the long run direction of the
organization to achieve the objectives.
3.7 LEVELS OF PLANS
3.7.1 Operational Plan
In planning, managers have to make use of the different types of operational plans for the
effectiveness of the organization. This operational zing strategy is done at all levels and
involves directing the organization’s day to day operations to achieve overall strategic
objectives consistent with the organization’s mission and policies.
There are two types of operationalizing strategy ( operational plans)
Single use plans
It is a detailed course of action that probably will not be repeated in the same form in the
future. It is designed for a specific purpose or period. The plan ceases to exist when the
goals are achieved.
Single use plans consists of program, project and budgets.
- Programs
Deals with the who, what, where, when, how, and how much of an activity. It
covers a relatively large set of activities whereby it indicates:
- Major steps that are required to reach an objectives.
- The organization unit or member involved for each steps.
- The order and timing of each steps.
Program are the actual course of action designed to carry out the
established objective. Usually the programs may be accompanied by a
budget for the activities required.
- Projects
Are similar to programs but smaller because each project has a limited scope and
distinct directive concerning assignments and time. Projects are short-term in
nature.
- Budgets
Statements of financial resources set aside for specific activities in a given period
of time. Budgets are plans that commit resources to activities, project or
programs.
b. Standing Plans
These plans serves as guidelines to managerial action and are designed to be used again
and again, These plans bring consistency to the operations. They exist in the form of
policies, procedures and rules.
- Policies
policy is a standing –use plan that communicates broad guidelines for making
decisions and taking action. It indicates what is permitted and what is not. Policies
found in all aspects of an organization.
- Procedures
These are a series of steps in which activities are to be carried out. e.g, how to
operate a Photostat machine or how to handle employee grievances.
- Rules
These are very specific actions to be taken or not taken with respect to a situation.
E.g are wearing uniforms or reporting to work at a particular time.
3.7.2 STRATEGIC PLAN.
Process of making long term choices about an organization’s mission, overall

objectives, strategies, policies and resource allocations.
3.7.3 TACTICAL PLAN
Making detail, short term decisions of what to do, which will do and how it is to
be done. Developing annuals budgets for projects and departments. Choosing
specific means of implementing strategic plans.
3.8 PLANNING PROCESS
Stating organizational
objectives
Listing alternatives
ways of reaching
objectives
Developing premises
upon which each
alternative is based
Choosing best
alternatives for reaching
objectives
Developing plans to
pursue chosen
alternatives
Putting plan into action

3.9 OBJECTIVES
- Objectives are the prime parts of the plans and are vital to an organization because
all the efforts an activities are focused on this objectives .
- They provide a direction in which the organization should move.
- They serve as standards of performance against which actual performance may be

compared and it is an important dimension of the control process.
- Objectives determine the role an organization should play in a given environment.
- The efforts an activities of the members of an organization can be coordinated

with the help of objectives.
- A high degree of motivation can be maintained by setting objective for a members

of the organization an enabling them to achieve to those objectives.
3.9.1 The nature of objective:
1. Hierarchy of objectives_
It is a series of objectives linked to one another at the various levels of
management such that each higher-level objective is supported by one or more
lower- level ones.
3.9.2 A hierarchy of objectives is important to any organization because:
a) It helps to ensure the proper alignment of all organization levels with

the organization’s purpose.
b) It helps to coordinates decision at all levels
c) It provides a basis for establishing standards facilitating performance

measurement at all management levels.
d) It helps to avoid sub- optimization, that is, having some sub- units accomplish
their objectives at the expense of the other sub- units in the organization.
e) It helps to prevent displacement of objectives where it means become more

important than ends that were original intended.
3.9.3 RELATIONSHIP OF OBJECTIVES AND THE ORGANIZATIONAL
HIERARCHY
HIERARCHY OF OBJECTIVES
Board of
directors
Socio economic
purpose
1
Mission Top level

managers
Overall objectives
of the organization
( LR strategies )
3
More specific overall Middle

Objectives level
( key result areas) managers
4
Division objectives
Lower
Department and unit objectives level
managers
6
Individual objectives
- performance
- Personal development objectives
Organizational hierarchy
3.9.4 EXPLAINATION:
1. The purpose of society that requires the organization contribute to the

welfare of the people by providing good and services at a reasonable cost.
2. The purpose of the business, which might be furnish convenient, low-cost

transportation for the average person.
3. The stated mission might be to produce market and service automobiles. These aims are
then translated into general objectives or strategies, like designing, producing, marketing
a low- cost, fuel- efficient automobile.
4. At the next level of the hierarchy, you find more specific objectives such as those in the
key result areas. These are the areas in which performance is essential for the success of
the enterprise.
5. These objectives have to be further divided into division department and unit objectives
down to the lowest levels of the organization.
3.10 MANAGEMENT BY OBJECTIVE
3.10.1 Definition-
A management that uses organizational objectives as the primary means of managing
organizations.
- Popularize through the writing of Peter Drucker.
- MBO- strategy has 3 basic parts:
1 Individual within an organization are assigned a specialized set of objectives

that they try to reach during a normal operating period. These objectives are
mutually set and agreed upon by individuals and their managers.
2 Performance reviews are conducted periodically to determined how close
individual are to attaining their objectives.
3 Rewards are given to individuals on the basis of how close they come to
reaching the goals.
3.10.2 MBO PROCESS
1 Review Manager gains a clear understanding of the organization’s

organizational overall objectives.
objective
2 Set worker Manager and worker meet to agree on worker objectives
objective to be reached by the end of the normal operating period
3 Monitor progress At intervals during the normal operating period, the
manager and worker check to see if the objective are being
reached
4 Evaluate At the end of the normal operating period the worker’s
performance performance is judged by the extend to which the worker
reached the objectives.
5 Give rewards Rewards given to the worker are based on the extent to
which the objectives were reached.
3.10.3 SUCCESSFUL MBO PROGRAM
1. Top management must be committed to the MBO process and set appropriate
objectives for the organizations.
2. Managers and subordinates together must develop and agree on each
individual’s goals.
3. Employee’s performance should be evaluated. The evaluation helps to
determine whether the objectives are fair.
4. Management must follow through an employee performance evaluation by
rewarding employees accordingly.
3.10.4 ADVANTAGES AND DISADVANTAGES OF MBO
ADVANTAGES DISADVANTAGES
MBO programs continually emphasize Time consuming leaving both managers
what should be done in an and employees less time to do actual
organization to achieve goals. work.
MBO process secure employee Increase the volume of paper works
commitment to attaining (Elaborate goals, communication of goals
organizational goals. etc)
3.11 STRATEGIC PLANNING
3.11.1 Definition:
Long range planning focus on the organizing as a whole. It need managers to considers
the organization as a total unit and ask themselves what must be done in along term to
attain organizational goals.
3.11.2 Strategic Management:
Definition:
The process of ensuring that an organization possesses and benefits from the use of an
appropriate organizational strategy.
Strategic Management Process :

Environme Establishing Strategy Strategy Strategic
ntal organizationa formulati impleme control
analysis l direction on ntation
- General - mission
- Operating - objective
- Internal
3.12 RGANIZATIONAL MISSION
1. Determining the organizational mission

- Very broad statement of organizational direction.
- Purpose of which the reason why an organization exists.
- Reflects such information such as what types of product/ services, customer
tend to be and the important values its hold.
2. Developing a mission statement

- Mission statement is a written document develop by management,
normally based on input by manager as well as non managers that
describes and explains what the mission of an organization actually is.
- Mission express in writing to ensure that all organization members will
have easy access to it and understand exactly what the organization is
trying to accomplish.
3. Important of Organizational mission
- Help managers focus on human effort in a common direction

- Serve as a sound rationale for allocating resources
- Help managers define broad but important job area within an organization
and therefore critical jobs that must be accomplish.
3.13 BARRIERS TO AN EFFECTIVE PLAN
- Demand on the leader’s time

- Ambiguous and uncertain operating environment
- Resistance to change
3.14 OVERCOMING THE BARRIERS TO PLAN

- Involve employees in decision making
- Input from all levels of organization is essential for successful planning.
- Tolerate a diversity of views
- Diverse view lead to a broader assessment of organizational problems and
opportunities
- Encourage strategic thinking
- Effective strategic thinking can be developed through training and practice.
3.15 BARRIERS IN GOAL SETTING AND PLAN
1. Managers resistance to plan:

- Fear of failure-be blame for being a poor decision maker.
- Lack of knowledge – new goal will conflicting with the one that they are
used.
- Insufficient knowledge of environment –only know internal and external
environment may confuse managers.
- Lack of confidence- difficult to change their management and leadership
style.
2. Employees resistance to change

- Uncertainty about the causes and effect- worries about negative effect to
their work and daily life.
- Uncertainty about the job- may need to do extra work or transfer to
another area.
3.16 OVERCOMING BARRIERS TO PLAN
1. Managers
- Develop and improve communication system
- Develop program that enable them to establish contact with the various
department.
- Training and managers development program.
- Training skill that enable them to increase their knowledge and skills.
- Recognition and reward.
- Provide support, give recognition and rewards for accomplishment of
tasks among managers.
2. Employees:
a. Allow employees involved in planning process.

b. Give detailed information about the plans.
c. Plans and changes must guaranty that none of the employees will be
affected
ACTIVITY :
1. Contrast formal with informal planning?.
4. Under what circumstances do you believe MBO would be most useful? Discuss.
5. How do single use and standing plans differ?
6. How do you formulate strategies?
REFERENCES :

Prentice Hall.
3. Locke, E.A and Latham, G.P.1990. A theory of Goal setting and Task Performance.
Eaglewood Cliffs NJ: Prentice Hall.
CHAPTER FOUR OVERVIEW
ORGANIZING
4.0 DEFINITION OF ORGANIZING
4.1 IMPORTANT OF ORGANIZATION
4.2 ORGANIZATIONAL STRUCTURE
4.3 ORGANIZATION CHART
4.4 DIVISION OF WORK
4.5 TYPES OFORGANIZATION STRUCTURE
4.6 AUTHORITY AND POWER
4.7 DECENTRALIZATION/ DEPARTMENTALIZATION
4.8 DELEGATION
Learning objectives:
After completing this chapter student will be able to :
1) Explain why organization need to organize
2) Familiarize with organizational structure
3) Explain how to prepare organizational chart
4) Describe different types of organization structure
5) Differentiate between centralization and decentralization of organization.
6) Explain why organization need to practice delegation
4.0 ORGANIZING
4.1 Definition :
The formal way for managers to divide work coordinate task, delegate authority and
responsibility to achieve organizational objectives.
To structure / arrange the relationship between people, the work done and facilities so that goals
are achieved.
4.2 Why organizing?
- Divide work according to nature and similarity of tasks.

- Pool resources, increase efforts which lead efficiency
- Build continuity and synergy.
4.3 Important of Organizing
1. Important to management system.

2. To create and maintain relationship between all resources, by specifying which
resources to be used, when, where and how.
3. Minimize costly weaknesses
4. Accomplish better objectives by using coordinated efforts of people.
4.4 Organizational Structure :
Formal system that separates and integrates tasks :

- Allocating people and resources to tasks.
- Clarifying responsibilities through job descriptions, organizations charts and lines
authority.
- Letting employees know what to expect by them establishing rules, regulations
operation procedures and performance standards.
The chain of command and hierarchy of responsibility, authority and accountability are
established through organizational structure.
4.5 Organizational structure can be divide into four elements :
1. Specialization
2. Standardization
3. Coordination
4. Authority
a) Specialization :
- Identifying specialized task, assigning to individuals/ work who are trained.

- Middle managers will be responsible for directing work, functional and first line
usually supervise such as marketing, accounting or quality control.
b) Standardization :
- Developing the procedures an organization uses to ensure employees perform

their tasks in uniform and consistent manner.
How?
Description, instructions, rules and regulations to standardize subordinates jobs
success
- Application forms will standardize the selection of employees.
- On the job training programs will promote standardized skills and reinforce
values to organization’s success.
c) Coordination :
- Formal and informal procedures that integrates both managerial and employees
activities.
How?
In bureaucratic organization rules and regulations. In less structure- coordination requires
knowledge of company wide problems, a willingness to share responsibility and effective
interpersonal communication.
d) Authority :
Right to make decision and take actions. Various organization distribute authority
differently.
Centralized organization- top manages make decision, communicate to lower managers.
Decentralized organization – Greater decision making responsibility is given to lower
level managers.
4.6 ORGANIZATION CHART :
The way to describe the four elements including the location of positions, departments
and function within the organization. Five major information found in the organization
chart are:
1. Tasks
Indicates the range of tasks within the organization.
2. Subdivision
Each box represents a subdivision of the organization that is responsible for a
portion of the work.
3. Type of work
Label in each box identifies the subdivision area of responsibility.
4. Levels of management-
Management hierarchy, those reporting directly to the same individual are at the
same level.
5. Lines of authority
Lines connecting the boxes show the official lines of authority and
communication.
4.7 DIVISION OF WORK :
Work is being divided among members and different jobs related to each other .This
division of work and the grouping together of people is done based on some common
characteristics linked between the activities involved.
4.7.1 Importance of division of work :

- Increase productivity
- Create specialization- Simplified tasks that are easily understood and completed
quickly.
- Easy to assign tasks to individuals based upon their talents, interest and positions.
Disadvantages:
- Sense of control felt by managers will be different.

- Create dissatisfaction and boredom of routine and specialize tasks.
4.8 Span Of Management:
- Number of subordinates who report directly to a given manager.

- Job description detail the responsibilities and tasks associated with a given job.
4.8.1 Factors that influence the span of management
- Similarity of Functions
If similarity of subordinates activities increase, the span of management
appropriate for the situation widens.
- Geographic continuity
The closer subordinates are physically, the more of them managers can supervise
effectively.
- Complexity of Function
The more difficult and involved the activities are, the more difficult it is to
manage a large number of individuals effectively.
- Coordination
The greater the amount of time that must be spend on such coordination, the
smaller span of management should be.
- Planning
The more time managers must spend on planning activities, the fewer individuals
they can manage effectively.
Types of organization structure:

Flat and steep
Flat – Steep-
Flat wide span of authority Short span of authority with
many organizations levels.
Advantages Supervisors are forced to Close supervision and control.

delegate clear policies. Rapid communication between
Subordinates must willing to subordinates and superior.
obey
Disadvantages -Tend to be bottleneck b’cos Superior’s too involved with

of the burden of managing subordinates. Many levels
subordinates. costly excessive distance
-Danger of superior’s loss between the lowest and the
control. highest level.
-required Good managers
needed to handle situations.
4.8.2 FLAT : few organization levels with flat wide span of authority.
Advantages :
- Superiors are forced to delegate
- Clear policies
- Subordinates must willing to obey
Disadvantages :
- decision not passed down because of managing subordinates.
- Danger of the superior’s loss control
4.8.3 STEEP : Short span of authority with many organization levels.
Advantages :
- Close supervision and control
- Rapid communication between subordinates and superior.
Disadvantages:
- Superior too involved with subordinates
- Many levels costly
- Excessive distance between the lowest and the highest level.
4.9 AUTHORITY
The right to perform a command and make decision with respect to work assignments
and to require subordinates to perform assigned tasks in accordance with the decision
made.
Authority is delegate from top. Each employee and each superior should know
- Job suppose to accomplish
- Duties
- Authority
- His supervisor
- Subordinates
- Levels of performance
- Authority is a type of power. It is legitimate.
4.9.1 Types of authority
a) Line authority –
A manager is responsible for the work of his unit and its direct contributions to the
objectives of the organization.
b) Staff authority
Each individual or group pays a supporting role and contributes to the objectives of the
organization.
4.9 DELEGATION:
- the process of transforming the responsibility for a specific activity or task to

another member of the organization.
- Basic consideration in delegation are:
1. responsibility, authority and accountability.
2. The Scalar principles
3. Unity of command.
Superior delegate authority to subordinates in order to facilitate work being
accomplished.
4.9.1 Why delegate?

- Culture of organization
- Specific situation involved.
- Relationship behavior personalities and capabilities of the people in that situation.
4.9.2 Guide lines for effective delegation authority.
- Responsibility- Obligation to perform any assigned duties.
- Authority - Right to make decisions, carry out actions and direct

others in matter related to the duties and goals of a position.
- Accountability. - Requirement to provide satisfactory reasons for

significant deviation from duties or expected results.
The Scalar principle:

- Members of the organization should know where they stand in the chain of
command.
- Indicate there must be clear line of authority from the highest to the lowest level
of organization.
- A clear line of authority will make it easier for organization members to
understand,
To whom they can delegate
Who can delegate
To whom they are accountable
Unity of command
- Each employee should report to only one superior.
- Enable individual to know to whom they are accountable and whose
instruction they must follow.
4.9.3 THE PROCESS OF DELEGATION
a) Assigning responsibility
Responsible to refers to the employee’s obligation to complete the activities that
he or she has been assigned
b) Granting authority
Authority is the formal right of an employee to marshal resources and
make decisions necessary to fulfill work responsibilities.
c) Establishing accountability
Where there is accountability for performance, employees understand that they
must justify their decisions and actions with regard to the tasks for which they
have assumed responsibility
4.9.4 Reasons for failing to delegate:
a) Lack of confidence in the abilities of subordinates.

b) Managers try to avoid the potential pitfalls of dual accountability.
c) Managers may be insecure about their own value to the organization.
4.9.5 BENEFITS OF DELEGATION
1. Leads to amore involved and empowered workforce.

2. Leads to better decision making.
3. Provides opportunity for employee to develop analytical and problem solving
skills.
4. Provides managers to opportunity to accomplish more complicated,
difficult, or important tasks.
4.9.5 Learning to delegate effectively

Principle 1:
Match the employee to the task.
Principle 2:
Be organized and communicate clearly.
Principle 3:
Transfer authority and accountability with the task.
Principle 4 :
Choose the level of delegation carefully.
4.10 POWER:
Ability to exert influence. A process where managers affect other’s behavior.
5 types of power:
a) Reward power:
Money, acceptance, praise, promotion, status
b) Expert power
Influence others through knowledge
c) Referent power
Status, money, physical appearance, fame
d) Coercive power
Pain, ridicule, penalty, rejection and denial of rewards.
f) Legitimate power
Position- president, supervisor
4.12 CENTRALIZATION
The responsibility and authority concentrated in one place so that major decision are
made by central controlling body. In some situation all managerial decisions have to be
approved by the chief executive before operation.
Advantages :
- It provides absolute control over organization.
- Administration convenient and the focal point for each function.
- Common standards for all in organization.
Disadvantages :
- Each section may not have standard procedure.
- More reporting and inspection may be needed than if the control were centralized.
Control can be autocratic and inflexible. It will lead to frustration, managers members of
staff unable to use discretion but according to inflexible rules.
Bureaucratic control methods- Spread of forms and rigid procedures will thus slow down
the operations of the organization.
4.13 DECENTRALIZATION :
DEPARTMENTALIZATION :-
It occurs where responsibilities for various functions and operations are taken away from
the center and rests at the point where operations occur.
Four Types :
- By function - group of activities by function performed.

- By product - activities by product produces
- By territory / geographic – activities by territory
- By customer - activities by common customers.
- By process - activities by work or customers flow.
Advantages Disadvantages
By Mainly used by smaller firms Manager is expert in Difficult to make

Function that offer limited line of a narrow range of decision. Difficult
products because it makes skill. Easier to to determine
efficient use of specialize mobilized special accountability.
resources. skills. Little Does not foster
coordination and development of
interpersonal skills general managers.
needed. Promote conflict
over product
practices, difficult
to understand
responsibility for
overall tasks.
By product Functions and activities Places attention and Costly. Requires

based on products focuses effort on more personnel
manufactured by the product line. with the general
company. Responsibility for manager’s abilities
profits at the division to fill up the
level. Improves division of
coordination of maintenance of
functions activities. central services
Allows growth and becomes difficult
diversity of products when each
and services. managers need his
own services.
Division managers
fairly independent,
thus difficult for top
management to
control.
By territory Organized around the places Offers better services More staff required,
where operations are located at low cost. less control for top
Responsible for management,
profits at lower level. regional manager
Emphasizes on local are fairly
market and problems. independent.
Offer better face to
face communication.
By Grouping of activities to Concentrate on Difficult to

Customer reflect the interest of customers needs. coordinate
different customers Develops expertise in operations between
customer handling competing customer
demands. Requires
managers and
employees expertise
in customer’s
problem.
Advantages:
1. Flexibility to meet changes

2. Rewarding to managers and staff because it enables them to exercise their own
judgment and initiative.
3. Promote job satisfactions
4. Provides good management experience to managers and supervisors.
5. Promotes personal development and their service becomes of greater value.
ACTIVITY :
1. Can you identify the four ways to departmentalize?
2. How do authority and power differ?
3. How do centralization and decentralization differ?.
4. How does size affect structure?
REFERENCES :

Prentice Hall.
CHAPTER FIVE OVERVIEW :
CONTROLLING
1. DEFINITION OF CONTROLLING
2. IMPORTANCEOF CONTROLLING
3. STEPS IN THE CONTROL PROCESS
4. CHARACTERISTIC OF AN EFFECTIVE CONTROL
5. TYPES OF CONTRO
Learning objectives :
1. Understand the definition of controlling
2. Explain the importance of controlling in organization
3. Describe the steps in control process
4. Describe the types of control practiced
5. Apply the effective control system

CONTROLLING
5.0 Definition:
- The process to assure that actual activities conform to planed activities

( J.F stoner).
- The process of monitoring performance and taking action to ensure desired
results.
5.1 The Important of Controlling :
- Assist the management process- PLOC by determine what is necessary, when and
why it is required.
- Deals with the change, or uncertainty. Plans and goals set by organization deals
with future which is always uncertain and is constantly changing. E.g market
shift, product demand.
- Deals with complexity- As organization grow in size and diversity, they become
complex. Control is needed to coordinate activities and accomplish integration.
- Deals with human limitation ( mistake) e.g wrong forecasts thus it help tosspot
mistake.
- Ensure delegation and decentralization are operate smoothly. Enable managers to

check on performance.
5.2 The control process.:
Establish standards and methods for measuring the performance standard. E.g customer
waiting time.
Measure the performance e.g R & D gas in the air. Its depend on the situation. What ,
when and how frequently to measure.
Determine whether performance matches standards. If the performance match the

standard no corrective action is needed.
Take corrective action if the performance does not match the standard then corrective
actions may be include
5.3 Characteristics Of Effective System:
1. Accurate information-
Inaccurate will cause organization to make wrong decision.
2. Timely-
Information must be collected and evaluated quickly to enable managers to solve
problems on time.
3. Objective and comprehensive-

Standard set must be understandable and measurable. Focused on strategic control
points.(Strategic and results oriented)
4. Focus on strategic control points ( strategic and result oriented)
5. Flexible-
Individual judgment and is modified to fit new circumstance as they rise.
6. Consistent with the organization’s structure(organizational realistic).Control must
be exercised at all level of management.
5.4 Types Of Control ( Control Methods)
1. Pre – action control ( feed forward)

Control done at input level of production. To anticipate potential problems and
prevent them from occurring .e.g finance, human resource and material resources.
2. Steering control
To spot problems as they develop or work process, take corrective actions before
final result are achieve. E.g zero inflation campaign.
3. Screening control ( yes or no control)

Check points before an activity proceeds further e.g bank procedure approval of
large amount of cheque.
4. Post action control

After an action is completed. Attempts to measure result of certain action. If there
are problem corrective, actions are done and applied to future activities. E.g
restaurant will ask how you find your meal after you have taken it.
ACTIVITY :
1. Why organization need to focus on controlling?
2. What are the basic relationship between controlling and other management
functions?.
2. Discuss steps use in controlling?
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th

ed 2001, Prentice Hall.
3. Mondy, R. Wayne, Premeaux, Shane R. management Concepts,

Practices and skills . 6th edn,1993, Allyn and Bacon.
CHAPTER SIX OVERVIEW
HUMAN RESOURCE MANAGEMEN

1. Definition
2. Human Resource Planning
3. Components Of HRM
- Recruiting and selection
- Training and development
- Performance appraisal and feedback
- Compensation and benefits
- Labour relation and / employment legislations

1. Understand how to plan human resource in organization.
2. Describe several components in Human resource Management
MANAGING HUMAN RESOURCE
6.0. Definition:
Refers to the individuals within the organization who make valuable contribution to the
management system.
6.1 HUMAN RESOURCE PLANNING

6.1.1 Step in providing Human Resource
1. Recruitment
2. Selection
3. Training
4. Performance appraisal
6.2 RECRUITING
- The process of finding qualified applications
- Must begin with the understanding of the position to be filled so the broad
range of potential employees can be narrow intelligently.
- Techniques used to gain the understanding are:
Job analysis Process for collecting information on the

important work related aspect of the job
Job description Description of the basic tasks, duties and
responsibilities of an employee holding a
particular job.
Job specification Qualification needed to successfully
perform a particular job.
JOB ANALYSIS
Job Description Job Specification
- Job title - Education
- Location - Experience
- Job summary - Training
- Duties - Physical effort
- Machine, tools - Physical skill
- Materials and form - Communication
Used skill
- working condition
6.3 Major source of Potential Job Candidates

1. Internal search
2. Advertisement
3. Employee Referrals
4. Employment agencies
5. University placement
6. Job fair
SELECTION
The process of screening job applicants to ensure that the most appropriate candidates
are hired.
TYPES OF SELECTION DEVICE

a) Application form
b) Written test
c) Interview
d) Background investigation
e) Physical examination
TRAINING
Is the process of developing qualities in human resource that will enable them to be
more productive and thus to contribute more to organizational goal attainable. 2 types
of employee training methods:
1. Sample on the job training methods
1. Sample on the Job Rotation:

job training - Employee work at different job
methods - Provides good exposure to a variety of tasks.
Understudy Assignment:
- Working with coach/mentor
- Provide support and encouragement from
experience workers
2. Sample Off the Job Training Methods
Classroom - Design to convey specific technical, interpersonal or

Lectures problem solving solving skills.
Films and - To demonstrate technical skills that are not easily to

videos presented by other training methods.
Simulation - Learning a job by actually performing the work.

Exercise - May include case analysis, role play, group interaction.
Vestibule - Learning tasks on the same equipment that one actually

training will use on the job but in a simulated work environment.
PERFORMANCE APPRAISAL
- A judgmental process of the job performance of employees.
- The process of assessing how well employees are doing their job.
- A process of establishing performance standards and evaluating
performance in order to arrive at objective human resource decisions as
well to provide documentation to support those decisions.
6.6.1 Importance Of Performance Appraisal

1. Provide a systematic judgment to support salary increase, promotion and
transfers.
2. Telling subordinates how they are doing and to suggest needed
changes in behavior, attitudes, skills, job knowledge etc,
3. Useful basis for the coaching and counseling of individuals by
superiors.
6.6.2 Methods Of Performance Appraisal

a) Rating skill
Use a form containing several employee qualities and
characteristics to be evaluated such as leadership, initiative etc.
b) Employee Comparison
Rank employees according to job performance, value to
organization etc.
c) Critical- Form Essay

Write down particular good or bad performance.
d) 360 Degree
Methods that utilizes feedback from supervisor, employees and co-
workers.
CHAPTER SEVEN OVERVIEW
TOTAL QUALITY MANAGEMENT
1. Definition of quality
2. The differences between Total quality management (TQM) and traditional management.
3. History of TQM
4. A system approach in TQM
After completing this chapter student will be able to:
1. Understand the difference between TQM and traditional management.

2. Explain about the history of TQM
3. Familiar with the system approach in TQM.
4. Discuss the main ideas of Total quality management.
QUALITY
7.0 Definition :
“ Performance to the standard expected by the customer”( Fred Smith, CEO of

Federal Express)
Meeting the customer’s need the first time and every time.(GSA)
- quality involves meeting or exceeding customer expectations.
- Quality applies to product, service, people, processes and environments.(Boeing )
- An ever changing state.( what is considered as quality today may not good enough
to be considered quality tomorrow)
7.1 Total Quality Management (TQM)
Integration of application functions and processes within organization in order to achieve

continuous improvement of the quality of goods and services. Goal is customer
satisfaction.
7.2 Differences between TQM and Traditional management:
TOTAL QUALITY MANAGEMENT TRADITIONAL MANAGEMENT
Customer Focus Management focus
Quality first Profits first

Multiple quality dimensions Single quality dimension
Management and worker involvement No worker involve
Process oriented Result oriented
7.3 History of TQM
Occurred in Japan after World War II. Japanese industry was completely destroyed and had to
be rebuilt from scratch. Number of American went to Japan and helped to built and operate
modern manufacturing facilities.
Contributors :
1. W. Edward Deming
2. Joseph M. Juran
3. Philip B. Cosby
4. Kooru Ishikawa
W. Edward Deming Defines quality as predictable degree of uniformity and

dependability, at low cost and suited to the market.
Quality improves, costs will decrease and productivity
increase, resulting more jobs.
Joseph M. Juran Fitness for use in terms of design conformance,

availability, safety and field use. Focuses on top down
rather than worker pride and satisfaction.
Philip B. Cosby Quality is defined as conformance to requirements, not

goodness. The system for achieving quality is
prevention, not appraisal. The performance is zero
defect. The measurement of quality is the price of non-
conformance.
Kooru Ishikawa Contributing to the emergence of quality circle, workers
meet to discuss suggestions for improvements.
Focusing on the total quality effort on customers. Output
of one department should be given to another
department.
7.4 THE MAIN IDEAS OF TQM:
TQM is a process of continuously improving quality over the long run. There are five main
TQM ideas
A system approach :
- Depends on understanding organizations as systems.
- Parts of the system must work to support each other.
Systems:
- A series of functions or activities within an organization that work
together for the aim of organization.
a) Culture system:
Referred as social system. ( set of beliefs and resulting behaviors that are shared
throughout the organization).
b) Technical system:
Factors such as technologies in the physical infrastructure – include ergonomics
consideration, computer software, hardware configuration and capital
investments.
d) Management system:
Define the effectiveness of those processes by which an organization manages its
human and physical assets.
7.5 THE THREE SYSTEM IN ORGANIZATION
The managerial system
The social system
Managerial diagnosis
Symbol, rewards, recognition.
Managing and checking
points
Policy deployment
Cross functional
Management goal setting
The technical system

Tools and techniques
The tool of TQM Kaoru Ishikawa determine a good or bad

outcome in Fishbone diagram – helps to
show possible causes of problems.
Benchmarking – comparing own products
and process against the very best in the
world.
A focus on customers Internal and external customers define

quality and employees produce it.
The role of management Effort from all levels supervisors to senior

executive making TQM success. Know
how to pass on authority and responsibility
to the people they work and put extra effort
to cooperate with other departments.
Employee participation Empowerment. Letting employees make

decision at all levels of an organization
without asking for approval from
managers.
ACTIVITY :
1. What differ between traditional management and Total Quality Management?.
2. What are the main ideas of TQM?
2. Discuss the system approach in quality management?.
REFERENCES :

3. Berry, T.H.1991. Managing the Total Quality Transformation. New York: McGraw – Hill.
CHAPTER EIGHT OVERVIEW
DECISION MAKING
7.0 Definition of Decision Making
7.1 Types of decision making
7.2 Steps in decision making process
7.3 States of nature types and decision
7.4 Condition that affect decision making
After completing this chapter, student will be able to:
1. Explain what is decision making
2. Explain types of decision making
3. Apply all steps in decision making
4. Familiarize types of state of nature in decision making.
5. Know the condition that affect decision making
DECISION MAKING
8.0 DEFINITION
- Process where a course is selected as the way to deal with a specific problem.
- Selection of one alternative from two or more alternative.
8.1 THE NATURE OF MANAGERIAL DECISION MAKING
Decision making is one of the vital tasks of a manager e.g in planning, organizing,
controlling.
Decision making is a process which affects all the manager’s operating functions. The
key to successful decision making depends on the proper formulation of the specific
problem at hand.
8.2 Types of decision making :
1. Programmed decisions
2. Non- program decision
PROGRAMMED DECISIONS
It is a repetitive decision that can be handle by a routine approach. It is usually made in

accordance with some established habit, rule or procedure (STONER). Grievances
procedures for employees are an example of programmed decisions.
NON- PROGRAMMED DECISION
This is a type of decision that deals with a unique, unusual or exceptional problems. The
nature of the problem that occurs is unstructured and something different. Eng is the
selection and training of personnel.
e.g Nature of problems an decision making in organization
Highest level Un structured Non- programmed
Organizational
hierarchy
structured
lowest level
organizational levels nature of problem programmed

nature of decision making
Programmed decisions Non programmed decision

A repetitive decision that can be handle by Unstructured, unique, unusual or
routine approach. Well structured situations exceptional problem, requires a higher
using predetermine decision rules, related level management participation. E.g J.E.
rules and policies. E.g grievances Virus out break.
procedures for employees.
8.3 DECISION MAKING CONDITIONS
There are three different conditions under which decision are made. Each of those conditions
is based on degree to which the future outcome of a decision alternative is predictable. These
condition are:
1. Certainty
2. Risk
3. Uncertainty
CERTAINTY
:
The decision maker knows the out-come of the problems. Individual are fully informed in
terms of :
- The nature of the problems

- Possible alternatives
- Result of alternatives
RISK
Future condition are unknown in advanced. Some information are available but not
enough to answer all questions and normally most of the management decisions are made
under this condition. Occurs in the situation in which an individual can define as :
- Nature problems
- Possible alternatives
UNCERTAINTY
Individual cannot even assign subjective probabilities to possible state of nature because
the individual do have the information or intuitive judgment to use as basis for assigning
the probabilities to each state of nature.
8.4 STEPS IN DECISION MAKING
The understanding of the steps will enhance and improve the analytical and decision
making process.
Steps 1
- Investigate the situation.
- Define the problem
- Diagnose the causes
- Identify decision objectives
Step 2
- Generate alternative solutions.
- Consider as many alternatives as possible
Step 3
- Evaluate and choose among alternative solutions
- Once the possible solutions are developed, the decision maker has to examine the
probable desirable and undesirable consequences of each alternative.
Step 4
- Implement and monitor the chosen solution
- Design the implementation for the chosen situation. Decision makers responsible
for reviewing the plan periodically and comparing the actual performance with
the planned solutions.
8.5 State Of Nature Types And Decisions
Routine Adaptive Innovative

Decisions decision decision
Certainty Uncertainty
Objective probabilities Subjective probabilities
RISK CONTINUUM
Routine :
Choices made in response to relatively well known problems. Solution obtained from standard
rules, operating procedures and computer programs.
Adaptive:
Combination of moderately. Unusual and partially known problems and alternative solutions that
are modifications of other known and well define solutions.
Innovative:
Involve combining the discovery, identification and diagnosis of unusual and ambiguous
problems with the unique. Novel and creative alternative solutions.
- Represents a series of mini decisions made over a period of months or several
years.
- Represents an individual decision, involve many people, many and various time.
- Do not unfold in a logical, orderly sequence.
- Made in the midst of a lot other managerial tasks.
Differences:
ROUTINE ADAPTIVE INNOVATIVE
Made under conditions of Moderate levels of High levels of risks and

certainty, low level risk uncertainty and risk. certainty.
8.6 CONDITION THAT AFFECT DECISION
MAKING States of nature:
Condition, situations and events that managers cannot control, but influence their decisions. e.g
new technologies, entrance of new competitors into market, new laws and political instability.
Certainty:
Managers are fully informed of the problem, alternative solutions that will lead to desired result,
probability that certain states of the nature will occur.
Objectives probability:
The likelihood that the state of nature will occur, based on hard facts and figures.
Rational decision and non- rational decision model:
Rational
Make optimal decision, possessing and understanding all information relevant to their decisions
at the time they are made.
Non-rational model
Information gathering and processing limitations make it difficult for managers to make optimal
decisions.
Rational decision :
Permits maximum achievement of an objective within limitations of environment in which
decisions are made. It merges the rationality of the decision maker and the decision into
sequence of basic steps:
1. Problem awareness and diagnosis.

It include noticing, interpreting and incorporation
Noticing Interpreting Incorporation

Managers Managers Managers
Monitor environmental Assess the forces they have Relate their interpretation to
forces and decide which are notice determine what is the current or desired state
problems causing it of their department/
organization to the future
problems.
2. Set objectives
What to be achieve and by what date.
3. Search for alternative solutions

Seeking additional information, thinking creative, consulting experts, undertaking.
4 Compare and evaluate alternative solutions.

Emphasizes expected results, including relative cost of each alternatives.
5. Choose among alternative solution.

Final choice
6. Implement the solution selected.
ACTIVITY :
1. Discuss two types of decision making?.
2. What are the condition that affect the decision making?.
3. Explain the step use in decision making?.
REFERENCES :

CHAPTER NINE OVERVIEW

LEADERSHIP
9.0 DEFINITION OF LEADERSHIP
9.1 IMPORTANCE OF LEADERSHIP IN ORGANIZATION
9.2 TRAIT THEORIES OF LEADERSHIP
9.3 BEHAVIORAL THEORIES OF LEADERSHIP
9.4 LEADERSHIP FUNCTIONS
9.5 LEADERSHIP STYLES
9.6 MANAGERIAL GRID (Leadership grid)
9.7 CONTINGENCY APPROACH/ SITUATIONAL FACTORS INFLUENCING

MANAGERIAL STYLE.
9.8 PATH GOAL THEORY
After completing this chapter, student will be able to:
1. Define what is leadership
2. Explain the importance of leadership in organization
3. Recognize several theories of leadership .
4. Identify several leadership styles practice in organization.
5. Familiarize with factors that influence managerial style.
LEADERSHIP
9.0 Definition :
Process of directing and influencing the tasks related activities of group members to achieve
goals.
( stoner, J.A.F, management, Prentice Hall, New Jersey, 6th edition)
The process of directing human resource efforts toward organizational objectives

( Schermerhorn, John, R ., Management for productivity, John Wiley and Sons,2nd edn)
Four important facts are:
1) Involves people- employer and employees.
2) Involve unequal distribution of power between leaders and group members

3) Involves the ability to use the different forms of power to influence, reward, referent,
expert power and legitimate power or authority.
4) About values – Moral, obligation and responsibilities towards employees.
9.1 Importance to organization
1) Make contribution to organization
2) Enhance and elicit cooperation
3) Encourage teamwork
4) Motivate employee to generate good work.
9.2 Trait theories of Leadership:
The average person’s definition of leadership are :
- Evaluation and selection of leaders are based on their physical, mental and
psychological characteristics. Qualities such as intelligence, charisma,
decisiveness, enthusiasm, strength, bravery, integrity and self confidence.
- Leaders have certain inborn personality or leaders are born with certain
characteristic.
Set of Traits that differentiate leaders:
Traits of leaders and non- leaders Traits of effective leaders and non-
effective leaders.
Physical appearance, charisma,, mental Intelligence, self assurance and managerial
ability, behavior/attitude, personality supervisory ability.
factors.
RESULT
Traits of leaders and non- leaders Traits of Effective leaders and non-
Effective leaders
Cannot point out the differences between Does not depend upon particular set
of
leader and followers, Traits can be gained traits. It depends on how well the
leaders
through learning process traits match the requirement of the
situation that / she is in.
The traits theory failed to isolate prominent traits to distinguish between leaders and non-
leaders.
9.3 BEHAVIORAL THEORIES OF LEADERSHIP
This theory is believe that people can learn the characteristic of a leader or people can be
train to be a leader. Two aspects of leadership behavior :
- Leadership function
- Leadership styles
9.4 LEADERSHIP FUNCTION:
Leader considered to be effective when practices these functions:
a. Task related/ problem solving function.

E.g suggesting solutions, offering information, opinion, counseling.
b. Group maintenance/ social function.

Help the group to operate smoothly. E.g agreeing the work performed by his/ her
workers practice empathy or sensitive to her/his subordinate’s feeling.
An effective leader must performs both functions simultaneously.
9.5 LEADERSHIP STYLES :
Generate into two different leadership styles :
1. Task oriented function/ production centered.

Concern on getting the job done to her / his satisfaction rather than develop or
employee growth.
- Plan and defines work to be done
- Assigns task responsibilities
- Sets clear work standards
- Urges task completion and monitor results
- Supervise employee.
- Concerned to get the job done rather than the development of the employees.
2. Employee oriented/ people centered.

- Managers try motivate rather than control the employees.
- Encourage to participate in decision making.
- Develop trust and respect .
- Show high amount of consideration towards employee’s ideas and feelings.
- Characteristic of Manager:
- Warmth and has special rapport with subordinates.
- Respect the feeling of others
- Sensitive to other’s needs and mutual trust.
9.6 MANAGERIAL GRID ( leadership grid)
Developed by Robert Blake and Jane Mouton. It concern for both employee- oriented and
task oriented styles of leadership to be practiced simultaneously.
The Managerial Grid

High ( 1.9) (9.9)
Concern
For people
5.5
(1.1) (9.1)
Concern for production
Managerial grid identifies five leadership behaviors :-
1.1 Impoverished management Little concern for either people or production-

Laissez- fair
1.9 Country club management Full attention to people’s need but low concern
for production.
5.5 Middle of the road Moderate concern for people and production
9.1 Autocratic/ authoritarian/ Task High concern for production and low concern for
management people. Leaders want work schedule to be
followed at all costs.
( Autocratic)
9.9 Team/ High concern for people and production

participation/democratic/supportive relationships. Work accomplishment. Managers
management. concern for feeling and interests of the group
members. ( Democratic)
9.7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH
Focuses on situational factors influencing managerial style.

It tries to identify :
- Find out whether there is any leadership style appropriate in particular situation.
- Identify which style is most important at any circumstances.
- Predict leadership style that will be most effective.
Result from theory:
- No one leadership style appropriate in all situations.

- Leadership behavior depends on situation such as leader- member relationship,
task structure, position power, employee’s characteristic, experience, expectation,
organization culture and policies.
Two leadership models developed:
1) Path goal model

2) Life- cycle or situational approach.
9.7.1 PATH GOAL THEORY
Path goal Model – By Robert J. House Life – Cycle theory or situational approach
( by Paul Hersey and Kenneth Blancard)
Leader : Leader :
- Make valued or desired - Must change style of leadership
rewards. according to level of maturity of employees
- Clarify to employees the and demands of situation.
kind of behavior
- Behavior will contribute to
employees satisfaction.
- Increase goal attainment
- Clearly defines job
requirements, provide
training, assist employees.
Source for rewards. E.g leaders give
directive, supportive, participative
and achievement oriented.
Employees attributes ability, open
minded, self control and experience.
Path goal theory will enable managers to influence their subordinates by :
a) Activating subordinates needs for rewards over which the leader has control e.g A
leader explaining to employee how they can qualify for overtime pay.
b) Increasing rewards to employees who achieve goals, e.g Recognition and

praises.
c) Making the path to rewards easier through coaching and direction. E.g
training, helping them to reaching goals.
e) Reducing frustration barriers to reach goals. E.g leader replace new

equipment.
9.7.2 LIFE –CYCLE OR SITUATONAL APPROACH
Developed by Hersey and Kenneth Blanchard. This theory says that a leader should
change his style of leadership according to the level of maturity of his employee and
the demands of situation of the situation.
Life – cycle Theory
high
Phase 3 Phase 2
High R/ship High Task

Low Tasks High R/Ship
Phase 4 Phase 1
Low Tasks High Task

Low R/ ship Low R/ ship
Low
Low High
Task Behavior
Maturity Immature
High Moderate Low
The diagram shows the relationship between :
1. Amount of task behavior that the leader shows ( horizontal axis)

( e.g providing direction, guidelines, controlling and monitoring)
2. The amount of relationship behavior the leader provides ( Vertical axis)

( e.g providing consideration and level of emotional support)
3. The level of task maturity the followers ( employees) show towards achieving specific
goals ( tasks or functions) that the leader wants accomplished.
M
a 1. A
t desire for
u achievemen
r t.
i 2. The
t willingness
y and ability
to accept
m responsibili
e ty
a 3. The
n education/
s experience
: and skills
relevant to
particular
tasks.
Explanation :
1. Phase 1 ( HT/LR)- Telling
Leader use one way communication. Defines the goals and roles of employees and
tell what, how and where to do task. Employee lack of task relevant maturity. E.g
employee relatively new and in experiences.
2. Phase 2 (HT/HR) – Selling
Employee are learning to do the job. High task relationship is needed because
employee lack of experience and skills. Managers provide high level of emotional
support and encouragement to develop trust and confidence .
3. Phase 3 (HR/LT)- Participating
Employee show maturity in performing tasks. More experience and skilled as well as
achievement oriented. Being motivated to assume more responsibility. Managers
reduces the need for task relationship and continues to give emotional support and
consideration to increase employees level of responsibilities.
4. Phase 4 (LR/LT) – Delegating
Highest level of employee maturity, possess a high level of task maturity. They are
skilled and experienced and motivated to assume more responsibility. They are self
directed and are able to exercise self control. They no longer need high level of
supportive or task behavior from their leaders/ managers.
ACTIVITY
1. Discuss the relationship between leadership and management?
2. If you a boss in any organization, what leadership style you may practice?
3. In what way leader can increase productivity?.
REFERENCES :
1. Robert Blake and Jane S. Mouton, The managerial grid III,1985 Houston : Gulf
Publishing.
2. Robbins, Stephen P, Management 6th edn 2001, Prentice Hall.
3. Mondy, R. Wayne, Premeaux, Shane R. Management Concepts, Practices and Skills, 6th
edn 1993, Allyu and Bacon.
CHAPTER TEN OVERVIEW
MOTIVATION:
1. DEFINITION
2. MOTIVATION PROCESS
3. EARLY VIEWS OF MOTIVATION
4. CONTEMPORARY THEORIES OF MOTIVATION
- Hierarchy of needs
- Theory X and theory Y
- Life cycle theory or Situational approach
- Two factors theory
After completing this chapter, you should be able to :
1. Explain the concepts of motivation and its significance in the managerial process.
2. Understand and apply contemporary theories of motivation.
10.0 DEFINITION :
The willingness to put forth effort in pursuit of organizational goals. ( R Wayne

Mondy, Management, 4th edition)
- tangible – higher pay, bonus and benefits

- Intangible – reputation, respect, recognition or achievement.
Concerned with why people act or do or why they refrain from doing things they do not
want to do.
Needs ( unfulfilled) Tension Drive
Search behavior
Reduction tension Satisfied Needs ( Needs fulfilled)

10.1 Motivation process.
Efforts are forces to perform- Individual, manager, employees. People need organization
to achieve goals and organization needs people to achieve its goals.
This lead to effective and efficient organization.
Good motivation practices will help leaders and managers:
1. Be sensitive to the differences in needs and values. Increase your employees

expectations that their efforts lead to effective performance.
2. Increase your employee expectation that their efforts will lead to effective
performance.
3. Encourage your subordinates to set performance goals that are specific,

challenging and attainable.
10.2 EARLY VIEWS OF MOTIVATION
There are three early views of motivation. They are :-
1. The traditional model, associated with Frederick W. Taylor and Scientific

Management.
2. The Human Relation Model, which related to Elton Mayo and Hawthorne
studies.
3. The Human Resources Model, Associated with Doughlas Mc Gregor’s Theory

X and Theory Y.
Traditional Model Human Relation Human Resources

Model Model
Assumes 1) Work is 1)People want to 1.People want to
inherently feel useful. contribute to
distasteful to meaningful goals.
most people. 2) Need to belong
2) What people do to a group, 2. Most people
is less important organization to be exercise more
rather than what recognized. creativity, self
they learn for direction and self
doing it. control than their
3) Few people present job demand.
want to work to
involve in work
that requires
creativity, self
direction or self
control.
Management policies 1.Manager should 1.Manager should 1.Manager make use
closely supervise make each worker of under utilized
and control feel useful human resources.
subordinates.
2.Should keep 2.Create environment
2.Manager must subordinates where members can
break down task informed and contribute.
into simple, listen to their
repetitive, easily objectives. 3. encourage full
learned participation.
operations. 3. Allow
3. Must establish subordinates to
detailed work exercise self
routine and control and self
procedures direction on
routine matters.
General expectations 1.People can 1. Sharing 1.Expanding
tolerate work if information with subordinates influence
pay is decent and subordinate and self direction and self
boss is fair. involving them in control will lead to
routine decisions direct improvement.
2. If tasks are will satisfy their 2. Work satisfaction
simple, people are basic needs to may improve as a ‘ by
closely controlled belong and to feel product” of
they will produce important. subordinates making
work that is up to full use of their
standard. resources.
5. CONTEMPORARY THEORIES OF MOTIVATION
a) Need theory or Content theory
b) Process theory
c) Reinforcement theory
A) NEED THEORY OR CONTENT THEORY
People need or require to live fulfilling lives, particularly with regard to work. A
person will be motivated when she or he has not yet attained satisfaction with
their life. Need vary among individuals. This is because people are different in
nature. ( Hierarchy of needs)
B) PROCESS THEORY
Process where individuals give meaning to rewards that will allow them to
influence their behavior or process theory explain how individuals are motivated
or the steps that occur when individuals are motivated.
( Herzberg two factors theory/ hygiene theory)
C) REINFORCEMENT THEORY
Describes how people learn patterns of behavior based on environmental

reinforcements. This means behavior with positive consequences tends to be
repeated, vise versa.( Theory X and Y.)
10.3 HIERARCHY OF NEEDS
Introduced by Abraham Maslow. He states that all people possessed a set of five needs in
them. These needs are arrange in a hierarchical order . They are the lower order needs
and the higher order needs.
Self- actualization needs higher order
Self-esteem needs
Social needs
Safety needs lower

Order needs
Physiological needs
1. Physiological needs
These need are our basic needs. These are for our survival. E.g food, water, and
shelter from environment
2. Safety or security needs

Deals with our physical and psychological safety from external threats. Examples are
job security, freedom from coercion and a need for clearly defined regulations.
3. Social needs or “ Belongingness”

Need for companionship, or need for personal “ belongingness”. E.g are love, need to
love somebody as well as the need for social interaction.
4. Self esteem needs

It is also known as growth need. It is a need for self-esteem and self growth. E.g are
respect from others, opportunities for advancement, recognition, achievement as well
as prestige and status.
5. Self – Actualization needs
It comprises needs for the development of one’s full potential or the realization of
one’s own potential.
10.4 TWO FACTOR THEORY / FREDERICK HERZBERG’S MOTIVATION
Introduced by Frederick Herzberg by studying the job attitudes of 200 engineers and
accountants .
From the study, it was concluded that individuals’ work satisfaction and dissatisfaction
arise from two different sets of factors. The factors are:
a) HYGIENE FACTORS
Also known as dissatisfier factor. It associated with the work setting of an

individual. Often called as job content. It causes feeling of job dissatisfaction.
b) SATISFIER FACTOR
Also known as motivating factor. It associated with job context, Satisfier factor is
related to the job content of individuals. Satisfier causes feelings of satisfaction.
Source of job satisfaction and job Dissatisfaction
Factors that led to extreme job Factors That Led to extreme job
dissatisfaction satisfaction
-Company policy and administration - Achievement
- Supervision - Recognition
-Relationship with supervisors/ boss - Work itself
-Working condition - Responsibility
-Relation with peers - Advancement
-Relation with workers - growth
-Status
-Security
How you apply this theory?
Both hygiene and satisfier factors are two separate entities. The absence of one does not
affect the other. Hygiene factor only affects job dissatisfaction. Improving them, such as
changing the rule, policy on dress code in the work place can make people less
dissatisfied but does not contribute to job satisfaction or motivate the employees to
increase their work effort.
The factors that will contribute to employee’s satisfaction will be the satisfaction factor.
Therefore, the managerial implications associated with the two factor theory are:
1. Improvements made in the hygiene factors can prevent or eliminate job

dissatisfaction. However, they will not improve job satisfaction.
2. Improvements made in the satisfier factors can increase job satisfaction. However
they will not prevent job dissatisfaction.
To motivate, managers need to turn their attention away from hygiene factors and focus
on improving satisfier factors.
10.5 THEORY X AND THEORY Y
This theory was developed by Douglas Mc Gregor. This theory describes the views or
perception of managers with regard to their employees.
Managers of theory X view the employees in terms of the following characteristics:
1. Inherently disliking work

2. Avoiding work whenever possible
3. Lacking in ambition
4. Irresponsible
5. Resistant to change
6. Feeling that work is of secondary importance
7. Preferring to be led than lead.
8. Having to be pushed by managers to work.
Here managers have a traditional or a pessimistic view of motivation with regard to

employees. These managers in order to make sure that their employees do their work,
have to apply the autocratic style of leadership where the employee have to be constantly
directed and controlled. Coercive power will be used.
Theory Y managers, view their employees in terms of the following characteristics:
1. Willing to work; work is as natural as play or rest.

2. Willing to accept responsibility, since work brings satisfaction.
3. Capable of directing themselves ( self direction)
4. Capable of self –control
5. Frequently using imagination, ingenuity and creativity in accomplishing tasks.
Theory T is optimistic view. To ensure high performance, managers need only to apply
the participative style of leadership, where employees are allowed more participation,
freedom and responsibility in their work. Theory Y manager will delegate the authority
and allow employees to participate in decision making. Greater job autonomy and task-
variety is offered to employees.
ACTIVITY
1. Discuss how Herzberg two factors theory help in motivating employees?
2. If you a manager, What can you do to motivate your staf?.
REFERENCES :
1. Petri, H.L. (1990), Motivation, Theory, Research and Application 3rd edn,
Belmont,C.A: Wadsworth Publishing.

Wiley and Sons.
4. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr.,Management,

6th edn, Prentice Hall, 1995
CHAPTER ELEVEN OVERVIEW
INFLUENCING - COMMUNICATION
1. DEFINITION OF COMMUNICATION
2. IMPORTANCE OF EFFECTIVE COMMUNICATION
3. THE COMMUNICATION PROCESS
4. CHANNELS OF COMMUNICATION
5. BARRIERS TO EFFECTIVE LISTENING
6. OVERCOMING BARRIERS
Learning Objectives :
After completing this chapter, student will be able to :
1. Define what is communication
2. Understand the importance of effective communication.
3. Explain the communication process
4. Explain different channels of communication.
5. Overcoming barriers to effective communication.
COMMUNICATION
11.0 DEFINITIONS :
Webster’s dictionary “ the arts of expressing ideas”. The science of transmitting

information.
OR
Oxford English dictionary – Imparting, conveying or exchange of ideas, knowledge etc..

by speech, writing or sign, bringing in with exchange.
OR
The process by which people seek to share meaning via the transmission of symbolic
messages.
In organization – Disseminating of information through memos, letters, reports and

newsletters. Discuss face to face meeting. Organizational communication.
Process of sending and receiving messages among individuals and groups called
interpersonal communication.
11.1 IMPORTANCE OF EFFECTIVE COMMUNICATION
Convey information
Giving instruction/ commanding action
Persuading or influencing change
1. Management function- PLOC requires effective communication.
2. Everyone in the organization need to be informed of the objectives and goals of

the organization.
3. Assist managers coordinating and integrating the work groups.
4. Employees need information to conduct tasks.
5. In leading and motivating managers need to inform employees of doing the right
tasks, allocating and correcting mistakes.
Managers is considered effective in his instruction when employees acts according to

instructions.
11.2 Types of communication

Interpersonal Communication – Between two or more people
Organizational communication - All the patterns, networks and system of
communication within an organization.
11.3 COMMUNICATION PROCESS
Classic model of communication developed by Shannon based on fine question- who—

says what---- in what way -----to whom----with what effect.
Noise Noise
Sender encording message decording Receiver
Medium
Noise
Feedback
Sender : Person with information to communicate
Encoding : Ways in which the information is expressed. E.g spoken

English .
Medium : From in which the message is. The telephone
Message : The information itself as encoded by the sender. E.g I’m looking
for a place on PR course.
Decoding : Interpretation- The receiver’s thought process on getting
The message.
Receiver : Person who receive the information. E.g switch board

Operator.
Feedback : The element of the receiver’s response which the receiver

communicates to the sender. E.g that course is full.
Noise : Any kind of interference which results in distortion. So that

the receiver gets a different message from the one that was
sent e.g incomplete information.
11.4 TYPES OF INTERPERSONAL COMMUNICATION
- Verbal - Communication transmitted with words

- Non Verbal - Communication transmitted without words
11.5 FORMAL ORGANIZATIONAL COMMUNICATION
Information flows around organization whether or not they try to control it.
a) Vertical communication: Comm. system in which messages / info move upwork

and downward.
Downward- In the form of instruction and information e.g policies,
procedures, rules, work schedules.
Upward – through suggestion schemes or some other form of feedback to

management. Convey info to their superior. eg. reporting work
progress, suggest ideas, suggestion box.
b) Lateral communication
Known as Horizontal communication. Information flow at the same level.
\
11.5.1 INFORMAL COMMUNICATION
- Grapevines between individuals and groups can be job related or

personal.
- Information can be accurate/ inaccurate

Four types of chains show how individuals convey information.
Single strand Gossip probability Cluster

Z
L M N J
D DE F G H T I K B I
C J S X D F
A
B C A
B
A A
11.6 LEVEL OF COMMUNICATION
1. Intrapersonal communication
Between you and god
2. Interpersonal communication
Deals with communication between people usually face to face.
3. Group communication
Relates to the interaction of people in a small groups, usually in decision
making setting.
4. Organizational communication
Occurs in large cooperative networks and include virtually all aspects of both
interpersonal and group communication.
5. Mass Communication
Deals with public communication . Received by or used by large number of
people ( postal service, internet etc)
11.7 ORGANIZATION INVEST IN COMMUNICATION FOR SOUND

BUSINESS REASON.
1. Effective employee performance
2. Manageability
3. Sharp- end feedback
4. Motivation
5. Team spirit
6. Crisis preparation
7. Participative staff
8. Good relation with its public

11.8 Improving The Comunication Process
VERBAL COMMUNICATION NON-VERBAL COMMUNICATION

Spoken words, writing letters, memo, Means of gestures and to express
newsletter, bulletin boards, letters, feelings and emotions. Face expression
mail, fax. and movement, voice tone, posture,
hand gesture, body placement, clothing,
dress and appearance
It is in form record and evidence. Info Obtain feedback, learn to relax when
well kept, easy to retrieved. communicate, use facial, hand and body
Verbal face to face, speed up gesture to supplement speech, avoid
exchanging ideas and get direct using the same non verbal, use role
feedback. playing, use mirroring to establish
rapport.
11.9 Barriers to effective listening
1. Poor listening
Happen when employees are not allowed to participate in the decision making
process and are not given a detailed explanation of rules and procedures to be
implemented. It can be very responsive to the change and they may refuse to
listen.
2. Semantic
Certain words may be interpreted differently by different people.
3. Filtering
Alteration of information to make it interesting, positive and acceptable to
the receiver.
4. Credibility of the sender

Associated with person’s feeling of love, anger, hate, jealousy,
fear, defensive, embarrassment and enthusiasm.
5. Noise
Factor interferes, confuse or disturb the messages from reaching the
receiver.
6. Filtering
The deliberate manipulation of information to make it appear more favorable to
the receiver.
7. Selective perception
When people selectively interpret what they see or hear on the basis of their
interest, background, experience and attitudes.
8. Emotion
How a receiver feels when a message is received influences they interprets it,
Often interpret the same message differently depending on whether you’re happy
or distressed.
9. Information Overload
The information we have to work with exceeds our processing capacity. They tend
to select out, ignore pass over or forget information.
10. Defensiveness
Respond in ways to hide an effective communication when people feel that
they’re being threatened
11. Language
Words means different things to different people, age, education and cultural back
ground are the most variable that influence the language of a person..
Jargon – specialized terminology or technical language.
12. National culture

Cultural differences can affect the way a manager chooses to communicate US
tend to be individual rely on memoranda, announcement and other formal forms
of communication.
Japan – more interact to their subordinates and used a more informal manner. Use
verbal consultation over on issues and draws up formal document to outline the
agreement that was made.
13. Credibility of a sender

How trustworthy the sender or the source of the message. If the sender is known
to be trustworthy , the information will get to receiver clearly. Where else, if the
sender has low credibility the receiver may ignore the information.
11.10OVERCOMING COMMUNICATION BARRIERS
1. Obtain feedback
Ask question, repeat message, visit site.
2. Use simple language

Technical terms must be clearly explained
3. Recognized emotions
Empathy
4. Do not make own conclusion

Listen to all issues carefully
5. Avoid noise
Identify it cause or sources.
6. Understand verbal and non- verbal communication

Facial expression, clothes, postures and gestures.
7. Create openness, rational and trust

Instill an atmosphere of openness.
8. Send message in an effective way

a- Plan and clarify ideas before communicating
b- Be specific
c- Use bias free language
d- Modify language and use words appropriate.
9. Listen actively
- Listen for full meaning without premature judgment or interpretation,
- Listening is an active search of meaning
- Listening is more tiring than talking
10. Be specific in giving orders

Managers must precise and clear when giving directive.
11. Use bias free language

The receiver of messages can have a bias feeling when a biased term is used in the
messages.
12. Modify language and use word appropriately

We have to study audiences and their background, education level and position.
ACTIVITY :
1. For what reason organization invest in communication?.
2. Explain the important of the two communication channels in organization?.
3. Effective communication importance to organization, Discuss how organization

overcome ineffective communication process.
REFERENCES :

Wiley and Sons.
3. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr., Management,
6th edn, Prentice Hall, 1995.

Study Manual For: Hajah Sobariah Awang Mukhtar Faculty of Information Management Uitm, Puncak Perdana Shah Alam

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STUDY MANUAL FOR

HAJAH SOBARIAH AWANG MUKHTAR

Overview of the course :

Today management world has been developed tremendously. Organization place

TEXT BOOK AND REFERENCES :

1. Robbins, Stephen P. and Decenzo david A. (2001). Fundalmental of

2. Stoner, A. F. Freeman, R. Edward and Gilbert Junior, Daniel, R

3. Schermerhorn, John R., Management for Productivity, 2nd edn, John

4. Institut Pengurusan Malaysia 1999. Management in Malaysia :Print

1. Ability to understand the scope of management theories and practices.

1.0 WHY WE STUDY MANAGEMENT

1.1 DEFINATION OF MANAGEMENT, ORGANIZATION AND MANAGERS.

1.2 MEASURING MANAGERIAL PERFORMANCE

1.3 MANAGEMENT PROCESS

1.4 LEVELS OF MANAGEMENT

1.5 MANAGERIAL SKILL

1.6 MANAGERIAL ROLES

1.7 MANAGERIAL ACTIVITIES

1.8 THE CHALLENGE OF MANAGEMENT

1.0 WHY WE STUDY MANAGEMENT ?

 To be responsible and accountable for employees to be in the same track towards

1.1 DEFINITION OF MANAGEMENTS, ORGANIZATION AND MANAGERS.

1.2 MANAGEMENT FUNCTIONS

Planning - Includes defining goals, setting objectives and

Leading - Aim to get all member to move in one direction.

Achieving the organization’s stated purpose ( Goal Mission)

First line managers

-first line manager

1.4 MANAGEMENT SKILLS

Conceptual skill – ability to coordinate and integrate all of an organization’s

FIRST-LINE MIDDLE TOP

1.5 MANAGERIAL ROLES

The specific classifications of managerial behavior.

2. Leader - A person who is responsible for hiring, training and

3. Liaison - A person who perform and interacts with other people

1. Monitor - Manager continuously seeks information that can be use to

2. Disseminator - Information received internally or externally will be transmitted

3. Spoke person - Information will be transmitted to people outside the

2. Disturbance handler - managers is responsible for corrective actions when the

1.7 THE CHALLENGE OF MANAGEMENT

b) Total Quality management

c) Social responsibility and ethic

d) Organizational restructuring and consolidation.

Can you define the following terms in your own words?

Management Organization manager Division of labor

Organizing leading Effectiveness

Controlling efficiency Informational roles

Interpersonal roles Decisional roles Globalization

Re-engineering Total quality management Empowerment

Restructuring First-line managers Middle managers

Top managers Functional manager General manager

1. What is management and what is organization ?

3. Why we need to study management?

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed 2001,

CHAPTER TWO OVERVIEW

EVOLUTION OF MANAGEMENT THEORIES

2. PRE CLASSICAL VIEW POINT

3. CLASSICAL VIEW POINT

5. QUANTITATIVE SCIENCE APPROACH

After completing this chapter student will be able to:

1. Understand the beginning of management practice

2. Explain several management theories .

3. Apply several techniques of management practice.