Jaidi bin Sulaimin

STUDENT’S NAME :

I/C NO : 870414-49-5787

PROGRAMME : PROFESSIONAL DIPLOMA

CLASS DATE : 19TH JUNE 2021

INTAKE : June 2021

MODULE NAME : PRINCIPLE OF CORPORATE MANAGEMENT

TRAINER’S NAME : MUHAMMAD FAIZAL BIN WANARA

CENTRE : ATC LAHAD DATU/ TAWAU

OVERALL MARK
(Fill up by Trainer)

QUESTIO MAR
N K
1
2
3
4
5

TOTAL

FINAL
MARK
(40%)

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 Table of Content

Page Content
3 Four basic function of management
8 3 levels of managers in an organization
11 Decision making & 3 types of decision making
16 Steps in the decision making process
18 Steps in the control process
20 Delegation & 5 barriers to effective delegation

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 PROFESSIONAL DIPLOMA IN MANAGEMENT

PRINCIPLES OF CORPORATE MANAGEMENT

1. a) List and clarify the four basic functions of management. (8 marks)

Senaraikan dan jelaskan empat fungsi asas pengurusan.

What are the four basic functions of management?

A century ago, French industrialist Henri Fayol originally identified five elements as the
basic functions of management, but today, there are now four generally accepted
functions of management: planning, organizing, leading and controlling. These functions
work together in the creation, execution and realization of organizational goals. The four
functions of management can be considered a process where each function builds on the
previous function. To be successful, management needs to follow the four functions of
management in the proper order.

Managers first need to develop a plan, then organize their resources and delegate
responsibilities to employees according to the plan, then lead others to efficiently carry
out the plan, and finally evaluate the plan’s effectiveness as it is being executed and make
any necessary adjustments.

 Planning
 Organizing
 Leading
 Controlling

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Planning
In the planning stage, managers establish organizational goals and create a course of
action to achieve them. During the planning phase, management makes strategic
decisions to set a direction for the organization. Managers can brainstorm different
alternatives to achieve the objective before choosing the best course of action. While
planning, managers typically conduct in-depth analysis of the organization’s current state
of affairs, taking into consideration its vision and mission and evaluating what resources
are available to meet organizational objectives.

While planning, managers usually evaluate internal and external factors that may affect
the execution of the plan, such as economic growth, customers and competitors. They
also establish a realistic timeline for achieving the goal or goals based on the
organization’s available finances, personnel and resources. Managers may have to take
additional steps, such as seeking approval from other departments, executives or their
board of directors before proceeding with the plan.

There are several approaches to planning:

Strategic planning: This type of planning is often carried out by an organization’s top
management and usually creates goals for the entire organization. It analyzes threats to
the organization, evaluates the organization’s strengths and weaknesses and creates a plan
of how the organization can best compete in its environment. Strategic planning usually
has a long timeframe of three years or more.

Tactical planning: Tactical planning is the shorter-term planning of an objective that will
take a year or less to achieve. It is usually carried out by an organization’s middle
management. Tactical planning is usually aimed at a specific area or department of the
organization such as its facilities, production, finance, marketing or personnel.

Operational planning: Operational planning is the process of using tactical planning to

achieve strategic planning and goals. Operational planning creates a timeframe for
putting a portion of the strategic goal into practice operationally.

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Organizing
The purpose of organizing is to distribute the resources and delegate tasks to personnel to
achieve the goals established in the planning stage. Managers may need to work with
other departments of the organization, such as finance and human resources, to organize
the budget and staffing. During the organizing stage, managers strive to create a work
environment conducive to productivity. Managers typically take employees’ motivation
and aptitude into account to match employees with roles and tasks that best fit their
abilities.

When assigning team member roles, managers should explain and ensure that employees
understand their individual duties. To help employees feel engaged and productive,
managers should ensure that employees are assigned an appropriate amount of work and
an appropriate amount of time to complete their work.

Here are some examples of the organizing function:

If the company’s brand manager works part-time and the organization’s goal is to launch
a new advertising campaign for a product, the brand manager may not take on the
significant responsibility of managing the campaign besides their regular duties. The
company may hire an advertising agency to help with the promotion of the product.

If a company’s sales in a geographic area have grown exponentially, management may

plan to split the territory in two and need to divide the current team working in the
territory and hire additional staff members as needed.

Leading
Leading consists of motivating employees and influencing their behavior to achieve
organizational objectives. Leading focuses on managing people, such as individual
employees, teams and groups rather than tasks. Though managers may direct team
members by giving orders and directing to their team, managers who are successful
leaders usually connect with their employees by using interpersonal skills to encourage,
inspire and motivate team members to perform to the best of their abilities.

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Managers can foster a positive working environment by identifying moments when
employees need encouragement or direction and using positive reinforcement to give
praise when employees have done their jobs well.

Managers usually incorporate different leadership styles and change their management
style to adapt to different situations. Examples of situational leadership styles include:

Directing: The manager leads by deciding with little input from the employee. This is an
effective leadership style for new employees who need a lot of initial direction and
training.

Coaching: The manager is more receptive to input from employees. They may pitch their
ideas to employees to work cooperatively and build trust with team members. This style
of leadership is effective for individuals who need managerial support to further develop
their skills.

Supporting: The manager decides with team members but focuses more on building
relationships within the team. This style of leadership is effective for employees who
have fully developed skills but are sometimes inconsistent in their performance.

Delegating: The leader provides a minimum of guidance to employees and is more

concerned with the vision of the project than day-to-day operations. This style of
leadership is effective with employees able to work and perform tasks on their own with
little guidance. The leader can focus more on high-level goals than on tasks.

Controlling
Controlling is the process of evaluating the execution of the plan and making adjustments
to ensure that the organizational goal is achieved. During the controlling stage, managers
perform tasks such as training employees as necessary and managing deadlines.
Managers monitor employees and evaluate the quality of their work. They can conduct
performance appraisals and give employees feedback, providing positive remarks on
what they are doing well and suggestions for improvement. They may also offer pay raise
incentives to high-performing employees.

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Managers may need to make adjustments such as:

Budget adjustments
Managers monitor the budget and resources to ensure that they are using the resources
available and not going over budget. For example, a manager may notice that she is going
over budget on a project but be unsure what is causing the project to go over budget. In
this situation, she will need to identify whether there is a general problem with
overspending or whether one department, in particular, is going over budget. Once the
manager identifies the source of the overspending, she must take action to curb overall
spending and make cuts as necessary to balance the budget.

Staffing adjustments
Managers may need to make challenging decisions such as whether to reassign an
employee who produces a low-quality work to a different task or dismiss them from a
project. They may also need to add additional team members to meet an organizational
goal if they conclude that the team is understaffed. If this is the case, they may also need
to consult with organization executives to secure more funding.

Reference
https://www.indeed.com/career-advice/career-development/basic-functions-of-
management

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 b) List and simplify the 3 levels of managers in an organization. (7 marks)
Senaraikan dan permudahkan 3 tahap pengurus dalam organisasi

The three levels of management provide a separation between the managerial positions of
the organization. The administrative rank of an organization worker determines the extent of
authority, the status enjoyed, and the chain of command that can be controlled by the worker.
There are three levels of management found within an organization, where managers at these
levels have different roles to perform for the organization to have a smooth performance, and
the levels are:

1. Top-Level Management/ Administrative level

2. Middle-Level Management/ Executory

3. Low-level Management/ Supervisory

The levels of Management and Their Functions are Discussed Below:

1. Top Level Management

Top-Level Management is also referred to as the administrative level. They coordinate
services and are keen on planning. The top-level management is made up of the Board of
Directors, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the
Chief Operating Officer (COO) or the President and the Vice President.

The Top-level management controls the management of goals and policies and the
ultimate source of authority of the organization. They apply control and coordination of all

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the activities of the firm as they organize the several departments of the enterprise which
would include their budget, techniques, and agendas.

Top-level management is accountable to the shareholders for the performance of the

organization. There are several functions performed by the top-level management, but three
of them are the most important, and they are:

To lay down the policies and objective of the organization

Strategizing the plans of the enterprise and aligning competent managers to the
departments or middle level to carry them out.
Keeping the communication between the enterprise and the outside world.

2. Middle Level of Management

Middle-level Management is also referred to as the executory level, they are subordinates
of the top-level management and are responsible for the organization and direction of the
low-level management. They account for the top-level management for the activities of their
departments.

The middle-level managers are semi- executives and are made up of the departmental
managers and branch managers. They could be divided into senior and junior middle-level
management if the organization is big. They coordinate the responsibilities of the sub-unit of
the firm and access the efficiency of lower-level managers.

The middle-level managers are in charge of the employment and training of the lower
levels. They are also the communicators between the top level and the lower level as they
transfer information, reports, and other data of the enterprise to the top-level. Apart from
these, there are three primary functions of the middle-level management in the organization
briefed below:

To carry out the plans of the organization according to policies and directives laid down
by the top-level management.

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 To organize the division or departmental activities.
To be an inspiration or create motivation for junior managers to improve their efficiency.

3. Lower Level of Management

The lower level of Management is also referred to as the supervisory or the operative
level of managers. They oversee and direct the operative employees. They spend most of
their time addressing the functions of the firm, as instructed by the managers above them.

The lower-level managers are the first line of managers as they feature at the base of
operations, so they are essential personnel that communicates the fundamental problems of
the firm to the higher levels. This management level is made up of the foreman, the line boss,
the shift boss, the section chief, the head nurse, superintendents, and sergeants.

They are the intermediary, they solve issues amidst the workers and are responsible for
the maintenance of appropriate relationships within the organization. They are also
responsible for training, supervising, and directing the operative employees.

The lower level managers represent the management to the operative workers as they
ensure discipline and efficiency in the organization. The duty of inspiration and
encouragement falls to them, as they strengthened the workforce. They also organize the
essential machines, tools, and other materials required by the employees to get their job done.

Briefed below are the primary functions of lower-level management:

 To allocate tasks and responsibilities to the operative employees.
 To ensure quality and be responsible for the production quantity.
 To communicate the goals and objective of the firm laid down by the higher level

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  managers to the employees and also the suggestions, recommendations, appeals,
and information concerning employee problems to the higher-level managers.
 To give instruction and guided direction to workers on their day to day jobs.
 To give periodic reports of the workers to the higher-level managers.

Reference
https://www.managementstudyhq.com/levels-of-management-and-functions.html

2. a) What is decision making? Simplify 3 types of decision making. (8 marks)

Apa itu membuat keputusan? Permudahkan 3 jenis membuat keputusan.

Meaning and Definitions of Decision Making:

One of the most important functions of a manager is to take decisions in the organization.
Success or failure of an organization mainly depends upon the quality of decision that the
managers take at all levels. Each managerial decision, whether it is concerned with
planning, organizing, staffing or directing is concerned with the process of decision-
making.

It is because of its perverseness of Decision-Making that professor Herbert Simons has

said the process of managing as a process of decision-making. As per his opinion a post
of position cannot be said to be managerial until and unless the right of Decision-Making
is attached to it.

A decision is a course of action which is consciously chosen from among a set of

alternatives to achieve a desired result. It means decision comes in picture when various
alternatives are present. Hence, in organization an execute forms a conclusion by
developing various course of actions in a given situation. It is a made to achieve goals in
the organization. To decide means to cut off on to come to a conclusion.

It is also a mental process. Whether the problem is large or small in the organization, it is
usually the manager who has to comfort it and decide what action to take. So, the quality
of managers’ decisions is the Yardstick of their effectiveness and value to the
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organization. This indicates that managers must necessarily develop decision making
skills.

According to D. E. McFarland, “A decision is an act of choice – wherein an executive

forms a conclusion about what must not be done in a given situation. A decision
represents a course of behavior chosen from a number of possible alternatives”.

According to Haynes and Massie, “a decision is a course of action which is consciously

chosen for achieving a desired result”.

According to R. A. Killian, “A decision in its simplest form is a selection of alternatives”.

Thus, from above definitions it can be concluded that decision-making is a typical form
of planning. It involves choosing the best alternative among various alternatives in order
to realize certain objectives. This process consists of four interrelated phases, explorative
(searching for decision occasions), speculative (identifying the factors affecting the
decision problem), evaluative (analysis and weighing alternative courses of action and
selective (choice of the best course of action).

3 Types of Decision-Making:
The decisions taken at various points of time may be classified thus:

1. Personal and Organizational Decisions:

Decisions to watch television, to study, or retire early are examples of personal decisions.
Such decisions, pertain to managers as individuals. They affect the organisation, in an
indirect way. For example, a personal decision to purchase a Maruti rather than an
Ambassador, indirectly helps one firm due to the sale and hurts another because of the
lost sale. Personal decisions cannot be delegated and have a limited impact.

Organisational decisions are made by managers, in their official or formal capacity.

These decisions are aimed at furthering the interests of the organisation and can be
delegated. While trying to deliver value to the organisation, managers are expected to

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keep the interests of all stakeholders also in mind—such as employees, customers,
suppliers, the general public etc. they need to take decisions carefully so that all
stakeholders benefit by what they do (Like price the products appropriately, do not resort
to unethical practices, do not sell low quality goods etc.)

2. Individual and Group Decisions:

Individual decisions are taken by a single individual. They are mostly routine decisions.

Advantages and Disadvantages of Group Decision-Making:

Group decisions, on the other hand are decisions taken by a group of individuals
constituted for this purpose (for example, Admission Committee of a College, Board of
Directors in a company). Group decisions, compared to individual decisions, have far
reaching consequences and impact a number of persons and departments. They require
serious discussion, deliberation and debate. The following are the advantages and
disadvantages of group decision making.

Advantages:

i. A group has more information than an individual. Members, drawn from diverse fields,
can provide more information and knowledge about the problem.

ii. A group can generate a greater number of alternatives. It can bring to bear a wider
experience, a greater variety of opinions and more thorough probing of facts than a single
individual.

iii. Participation in group decisions increases acceptance and commitment on the part of
people who now see the solution as their own and acquire a psychological stake in its
success.

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iv. People understand the decision better because they saw and heard it develop; then
paving the way for smooth implementation of the decision.

v. Interaction between individuals with varied viewpoints leads to greater creativity.

Disadvantages:

i. Groups are notorious time-wasters. They may waste a lot of time and energy, clowning
around and getting organized.

ii. Groups create pressures towards conformity; other infirmities, like group think, force
members to compromise on the least common denominator.

iii. Presence of some group members, who are powerful and influential may intimidate
and prevent other members from participating freely. Domination is counter-productive;
it puts a damper on the groups’ best problem solvers.

iv. It may be very costly to secure participation from several individuals in the decision-
making process.

v. The group consists of severed individuals and hence, it is easy to pass the buck and
avoid responsibility.

3. Programmed and Non-Programmed Decisions:

A programmed decision is one that is routine and repetitive. Rules and policies are
established well in advance to solve recurring problems quickly. For example a hospital
establishes a procedure for admitting new patients and this helps everyone to put things in
place quickly and easily even when many patients seek entry into the hospital.
Programmed decisions leave no room for discretion. They have to be followed in a

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certain way. They are generally made by lower level personnel following established
rules and procedures.

Non-programmed decisions deal with unique/unusual problems. Such problems crop up

suddenly and there is no established procedure or formula to resolve them. Deciding
whether to take over a sick unit, how to restructure an organisation to improve efficiency,
where to locate a new company warehouse, are examples of non-programmed decisions.

The common feature in these decisions is that they are novel and non-recurring and there
are no readymade courses of action to resort to. Because, non-programmed decisions
often involve broad, long-range consequences for the organisation, they are made by
higher-level personnel only.

Managers need to be creative when solving the infrequent problem; and such situations
have to be treated de novo each time they occur. Non-programmed decisions are quite
common in such organisations as research and development firms where ‘situations are
poorly structured and decisions being made are non-routine and complex.

The characteristics of programmed and non-programmed decisions are discussed as

under:

Programmed vs. Non-Programmed Decisions:

i. Concerned with relatively routine problems. They are structured and repetitive in
nature.

ii. Solutions are offered in accordance with some habit, rule or procedure

iii. Such decisions are relatively simple and have a small impact.

iv. The information relating to these problems is readily available and can be processed in
a pre-determined fashion.

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 v. They consume very little time and effort since they are guided by predetermined rules,
policies and procedures.

vi. Made by lower level executives.

vii. Concerned with unique and novel problems. They are unstructured, non-repetitive
and ill defined.

viii. There are no pre-established policies or procedures to rely on. Each situation is
different and needs a creative solution.

ix. Such decisions are relatively complex and have a long-term impact

x. The information relating to these problems is not readily available.

xi. They demand lot of executive time, discretion and judgment.

xii. Top management responsibility

Reference
https://www.businessmanagementideas.com/management/decision-making-
management/decision-making-definitions-types-techniques-methods-process-and-
steps/18249

b) List the steps in the decision making process. (7 marks)

Senaraikan langkah-langkah dalam proses membuat keputusan.

In general, the decision making process helps managers and other business professionals solve
problems by examining alternative choices and deciding on the best route to take. Using a step-by-
step approach is an efficient way to make thoughtful, informed decisions that have a positive impact
on your organization’s short- and long-term goals.

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The business decision making process is commonly divided into seven steps. Managers may utilize
many of these steps without realizing it, but gaining a clearer understanding of best practices can
improve the effectiveness of your decisions.

STEPS OF THE DECISION MAKING PROCESS

The following are the seven key steps of the decision making process.

Identify the decision. The first step in making the right decision is recognizing the problem or
opportunity and deciding to address it. Determine why this decision will make a difference to your
customers or fellow employees.
Gather information. Next, it’s time to gather information so that you can make a decision based on
facts and data. This requires making a value judgment, determining what information is relevant to
the decision at hand, along with how you can get it. Ask yourself what you need to know in order to
make the right decision, then actively seek out anyone who needs to be involved.

“Managers seek out a range of information to clarify their options once they have identified an issue
that requires a decision. Managers may seek to determine potential causes of a problem, the people
and processes involved in the issue and any constraints placed on the decision-making process,”
Chron Small Business says.

Identify alternatives. Once you have a clear understanding of the issue, it’s time to identify the
various solutions at your disposal. It’s likely that you have many different options when it comes to
making your decision, so it is important to come up with a range of options. This helps you
determine which course of action is the best way to achieve your objective.

Weigh the evidence. In this step, you’ll need to “evaluate for feasibility, acceptability and
desirability” to know which alternative is best, according to management experts Phil Higson and
Anthony Sturgess. Managers need to be able to weigh pros and cons, then select the option that has
the highest chances of success. It may be helpful to seek out a trusted second opinion to gain a new
perspective on the issue at hand.

Choose among alternatives. When it’s time to make your decision, be sure that you understand the
risks involved with your chosen route. You may also choose a combination of alternatives now that
you fully grasp all relevant information and potential risks.

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Take action. Next, you’ll need to create a plan for implementation. This involves identifying what
resources are required and gaining support from employees and stakeholders. Getting others onboard
with your decision is a key component of executing your plan effectively, so be prepared to address
any questions or concerns that may arise.

Review your decision. An often-overlooked but important step in the decision making process is
evaluating your decision for effectiveness. Ask yourself what you did well and what can be
improved next time.
“Even the most experienced business owners can learn from their mistakes … be ready to adapt your
plan as necessary, or to switch to another potential solution,” Chron Small Business explains. If you
find your decision didn’t work out the way you planned, you may want to revisit some of the
previous steps to identify a better choice.

Reference
https://online.csp.edu/blog/business/decision-making-process/

3. a) Identify the steps in the control process (7 marks)

Kenal pasti langkah-langkah dalam proses kawalan

Controlling is one of the most important functions of management. Its main objective is to ensure
that an organization’s activities are advancing as planned. The control process that all managers have
to implement consists of several steps. Each one of these is equally important and plays a big role in
effective management.

The control process of management ensures that every activity of a business is furthering its goals.
This process basically helps managers in evaluating their organization’s performance. By using it
effectively, they can decide whether to change their plans or continue with them as they are.

control process

The control process consists of the following basic elements and steps:

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1. Establishing goals and standards
The task of fixing goals and standards takes place while planning but it plays a big role in controlling
also. This is because the main aim of controlling is to direct a business’s actions towards its goals. If
the members of an organization know their goals clearly, they will invest their entire focus in
achieving them.

It is very important for managers to communicate their organization’s goals, standards and
objectives as clearly as possible. There must never be ambiguities amongst employees in this regard.
If everybody works towards common goals, it becomes easier for an organization to flourish.

The goals that managers have to set and work towards may be either tangible/specific or
intangible/abstract. Tangible goals are those which are easy to quantify in numerical terms. For
example, achievement of sales worth Rs. 100 crores within one year is a tangible goal.

On the other hand, intangible goals are those which are not quantifiable numerically. For example, a
company may aim to win some prestigious award for its corporate social responsibility activities.

2. Measuring actual performance against goals and standards

Once managers know what their goals are, they should next measure their actual performance and
compare. This step basically helps them in knowing whether their plans are working as intended.

After implementing a plan, managers have to constantly monitor and evaluate them. They must
always be ready to take corrective measures if things are not working properly. In order to do this,
they should keep comparing their actual performance with their ultimate goals.

Apart from taking corrective action, this step of process control also helps managers in predicting
future problems. This way they can take measures immediately and save their business from losses.

In order to compare their actual performance, managers first have to measure it. They can do so by
measuring results in monetary terms, seeking customer feedback, appointing financial experts, etc.
This can often become difficult if managers want to measure intangible standards like industrial
relations, market reputation, etc.

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3. Taking corrective action
In case there are discrepancies between actual performances and goals, managers need to take
corrective actions immediately. Timely corrective actions can reduce losses as well as prevent them
from arising in the future again.

Sometimes, business organizations formulate default corrective actions in the form of policies. This,
however, can be difficult to do when it comes to complicated problems.

In such cases, managers need to first quantify the defect and prepare a course of action to remedy it.
Sometimes, they may have to take extraordinary measures for unpredictable problems.

4. Following up on corrective action

Just taking corrective measures is not enough; managers must also take them to their logical
conclusion. Even this step requires thorough evaluations and comparisons.

Managers should stick to the problem until they solve it. If they refer it to a subordinate, they must
stay around and see to it that he completes the task. They may even mentor him personally so that he
may be able to solve such problems by himself later.

Reference
https://www.toppr.com/guides/business-management-and-entrepreneurship/controlling-
cs/control-process/

b) What is delegation? Give examples of 5 barriers to effective delegation? (8 marks)

Apa itu perwakilan? Berikan contoh 5 halangan untuk perwakilan yang berkesan?

Delegation is the assignment of authority to another person to carry out specific activities.
It is the process of distributing and entrusting work to another person. Delegation is one of
the core concepts of management leadership.

Reference
https://g.co/kgs/9HAEwp

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 As a leader and entrepreneur, you will find one of the biggest challenges to be
delegating tasks. In 2013, Stanford University conducted a survey which exposed the fact
that 37% of chief executives struggle and are working to improve on delegation skills.
Outlined are five disadvantages that might be keeping you from reaching your delegation
goals. To overcome these barriers, we must first identify them.

It Takes Time & Mentoring

We all know that time is money, and we are always looking for ways to save time and be
more efficient in what we do. Those voices in your head are telling you that you don’t have
the time to adequately explain or teach the skills for the task at hand to your team member.

Loss of Control
Admit it, we can all be a bit of a control freak at times. Many business owners have a
long history of making things happen with their own skill and determination. Even though
business owners think they can do the task better, your business will not be successful if
there’s a leader micromanaging everything.

Delegating Yourself Out of a Job or Losing Tasks You Enjoy

Another barrier business owners may come across is the fear that you are going to train
yourself out of a job. Or maybe there’s a reoccurring task that you enjoy but you offloaded it
to a team member. This is a great problem to have! Now that you have less on your plate you
can move to a higher position, take on more challenging tasks, or focus on those business
development plans you never had the time for. You will also be rewarded by seeing others
succeed because of your coaching.

Lack of Confidence/Faith in Your Team

Leaders may be hesitant to delegate tasks because they don’t have confidence or faith in
their team members. It’s okay to feel this way, but it’s something you must overcome for
successful delegation. Start small, take small risks and set your team up for success.
Successes early on will give you the courage to delegate more and more in which you can
gradually increase the complexity of tasks assigned.

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 Asking for Help is a Sign of Weakness
Asking for help sucks, and you might feel like it’s a sign of weakness, when really it is a
sign of strength and trust. We are only human, and we can’t do everything by ourselves.
Often it is fear that fuels this anxiety: Fear of over-stepping. Fear of appearing too needy.
Fear of imposing. Fear of revealing our struggle and having people realize we don’t have it
all together after all.

Reference
https://www.alpinesbsolutions.com/5-barriers-delegation-overcome-va/

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