Dr.

Effendi Mohamad
Tel: 06-3316450/ 012-3745208
effendi@utem.edu.my
 :
Organizational activities that
involves planning, organizing,
leading, and controlling in order to
achieve a set of objectives.
a person who drives the activities
of an organization towards
achieving the objectives, using
resources such as men, money,
machines and information.
1. Planning
• The most important and basic
management function.
• Its purpose is to define where the
organization wants to go, what goals it
wants to achieve, who is responsible for
what, and how it will be performed.
• Planning increases the likelihood of
success.
• Necessary as a result of planning;
the objective is to achieve
maximum efficiency toward
organizational goals.
• The process establishes work
groups, materials, and activities
necessary to achieve the
organization‟s goals.
 The use of communication by
a manager to guide, motivate,
influence, and direct people‟s
efforts toward achievement.
• Focuses on evaluating performance
according to the plans that have been
established. It includes four steps:
oDefine and specify critical goals to be
measured at all levels, to avoid
confusion and failure will follow.
oAppropriate standards must be set for
goals to be accomplished. A standard
is an expected level of performance; it
may be specific and measurable.
oCompare performance with
standards and identify areas
where the standards have not
been met.
oMake corrections related to
differences between the standard
and actual performance.
• Links all managerial functions…no
other functions can be fulfilled
without communication.
• It is the process of sharing ideas so
that they can be understood and
used.
• The means by which an organization grows or
dies
• The overall planning, evaluating, and enforcement
that goes into bringing about profit
• Keeping your customers happy by delivering a
quality product at a reasonable price
• Directing the actions of a group to accomplish a
desired goal or objective in the most efficient
manner
 “A means for making people productive in
working together”

Organization's have “structures” and

distinctive cultures

Peter Drucker: The Effective Executive

•Strategy, structure and culture must align
•How do the strategy, structure and culture of an
organization reflect and influence the behavior of
individuals?
Strategy

Structure Culture - behavior

 As objectives have direct bearing on the
organization structure, only those objectives
which is really needed should be taken up
for accomplishment.
 Objectives decide the type of work
(functions) to be performed in the
organization, and these functions dictate the
selection of personnel and physical facilities.
 For performing a work properly, it is essential
that everybody must know his task or duty i.e.,
power or authority and responsibility.
 Authority means, “right to act, decide and
command”. A manager will not be able to
perform his task properly unless he is given
necessary powers (i.e., authority). Therefore,
whenever a task is assigned to a person, he
must be given sufficient powers to exercise
control to achieve the task.
 Responsibility is the obligation of a subordinate
for the performance of any job allotted by the
superior.
 It is a number of subordinates which are
directly under their superiors.
 Too small number will lead to non utilization of
full time and energy of the superior, while large
number will lead to difficulty in exercising
proper control.
 An ideal number of subordinates for a superior
authority is 4 and at the lowest level the ideal
number is 12 to 16. Thus a manager may have
4 deputy managers and foreman may have 16
workers.
 Generally where the work is of routine nature,
the number is more.
 “Delegation is a process, a manager follows
in dividing the work assigned to him so that
he can perform that part which only he,
because of his unique organizational
placement, can perform effectively and so
that he can get others to help him with that
remains”.
 The need for delegation arises mainly from
the natural limitations of the human being.
Power is the ability to exert influence,
that is, the ability to change the
attitudes or behavior of individuals or
groups.
1. Reward Power. This is the power derived
from the fact that one person known as
influencer, has the ability to reward another
person for carrying out orders.
2. Coercive Power. This is based on the
influencer‟s ability to punish the influence.
3. Legitimate Power. In this, subordinate
acknowledge that influencer has a „right‟ to
exert influence. This power is also known
as formal authority.
1. Expert Power. This power is based on the
belief that the influencer has relevant
expertise that the influence does not.
2. Referent Power. This is the power based on
the desire of the influence to be like the
influencer or to be identified with him.
 Top Chief Executive
Management
Senior
Exercutive

Department
Middle Head
Management
Superintendents

General Foreman
Supervisory
Management
First-line supervision

Workers
• Definition of relationships
• Prescription of information flow
• Map of formal communications
• Command and control
• Only a representation of reality
• “The map is not the territory”
 Organization structure provides an
appropriate framework of authority and
responsibility relationship between various
positions.

 An organization structure greatly affect the

people in the organization,
 A proper structure facilitates the effective
use of the manpower and their technical
expertise.
Organization structure can also be defined
as the systematic arrangement of the
people working in the enterprise in order to
achieve predecided goals.
 Organization structure is shown on an
organization chart with horizontal and
vertical relationship. Horizontal dimensions
define the basic departmentalization while
vertical one relate to the hierarchy of
superiors and subordinates.
 Complexity

 Formalization

 Centralization
Basic Structural Types:

•Organic

•Mechanistic
Organic:
Simple

Informal

De-Centralized
Mechanistic:

Complex

Formal

Centralized
 Organic Mechanistic
Channels of Open with free Highly structured,
communication flow of restricted information
information flow
Operating Allowed to vary Must be uniform and
styles freely restricted
Decision Participation and Superiors make
making group consensus decisions with minimum
used frequently consultation and
involvement of
subordinates
Authority for Based on Based on formal line
decisions expertise of the management position
individual
 Organic Mechanistic
Emphasis on getting things done: Emphasis on formally laid down
Unconstrained by formally laid out procedures:
procedures Reliance on tried and true
management principles
Loose, informal control: Tight control:
With emphasis on norm of Through sophisticate control system
cooperation
Flexible on-job behavior: Constrained on-job behaviour:
Permitted to be shaped by the Required to conform to job
requirements of the situation and descriptions
personality of the person doing the
job
Free adaptation: Reluctant adaptation: With insistence
By the organization to changing on holding to fast to tried and true
circumstances management principles despite
changes in business conditions
•Is a pictorial record which shows the
formal relations which the company
intends should prevail within it.

•Hierarchy refers to the number of

levels of authority to be found in an
organization
 Level
Type name here 1

Type title here Type title here 2

4
5
6

2 – 3 subordinates
No. of levels = 6 report to
each supervisor
 Managing
Director

Marketing Engineering Production Finance

Market Engineering Production Financial

Research Design Planning Planning

Electrical Industrial
Advertising Budgeting
Engineering Engineering

Mechanical
Sales Procurement Accounting
Engineering

Quality Production Data

Publicity
Control Operations Processing
 Managing
Director

Procurement Personnel Manufacturing Finance

Metal Plastic Industrial Industrial

Products Products Instrument Tool
Projects Projects Projects Projects

Engineering Production Accounting Sales Engineering Production Accounting Sales

 Managing
Director

Project Procurement Engineering Production Finance

Management

Responsible
Project
for
„X‟
-Specifications
-Timescales
Project -Cost
„Y‟

Project
„Z‟

Responsible to decide
who
does the work and the
technology used
 Formal organization means the intentional
structure of roles in a formally organized
enterprise.
 Informal organization is joint personal
activity without conscious joint purpose,
even through contributing to joint results.
 The idea behind this is that it is easier to ask
for help on an organizational problem from
one you know personally, even if he is in
different department.
 In an organization hierarchy, various
levels require varying degree of
managerial skills, namely technical,
human, and conceptual skills.
 Technical skills are of maximum
importance of supervisory level.
Conceptual skills are of maximum use
for top level of management
• Reduce number of hierarchical levels
• Improves communication
• Shortens decision-making
• Decreases promotion opportunities
• Poor delegation gives high workload
• Different HR policies are required e.g.
for
- Training
- Reward
Organizational effectiveness is the degree by
which operational goals can be attained. It has
the following criteria for its evaluation:
1.Productivity
2.Overall performance
3.Rate of return on investment
4.Net profit
5.Job satisfaction
6.Motivation
7.Growth of organization
8.Flexibility of change.
 Integrated organizational system.
- different aspects must be considered
- various systems welded into a unified concept
Goals and
objectives
Achieved
to achieve
by

Communication,
The vehicle of
common
organization
facilities and
structure
decision-making

Supported Composed
by of
Organizational
sub systems &
individuals
• The „Personality‟ of the organization

• The mental programming of a group

• An emergent property
A System of:

• Shared values
• Shared beliefs
• Relationships between people
• Structures and control systems
• The ways of thinking, speaking and
interacting that characterize a certain group
• The collection of relatively uniform &
enduring values, beliefs, customs,
tradition‟s & practices that are shared by an
organization's members, learned by new
recruits and transmitted from one
generation of employees to the next
• The social glue that holds the organization
together
Deep set beliefs are held in organisations about:
• The way work is organised
• How authority is exercised
• How people are rewarded / controlled
• The degrees of formalisation required
• What combination of obedience / initiative?
• Do committees control or individuals?
• Are there rules & procedures or only results?
• Do work hours matter?
• Are dress / personal eccentricities important?
• Expense accounts / company cars etc
 History & ownership
 Size
 Technology
 Goals and Objectives
 Environment
 Workforce – key players
 Strategy and change
 Geographical location
 Reward systems
 Rules and procedures
 Critical incidents
• Identify an organization that you are
familiar with
• Describe the organizational strategy-
structure-culture prevalent in the
organization
• How do these features (strategy-
structure-culture) affect the
performance/achievement of the
organization?
Inputs to the
system
ORGANIZATION AS A SYSTEM

Technical Goals & values

Sub-system Sub-system

Equipment (hardware) Culture

Knowledge Philosophy
Techniques Organizational goals
Facilities Managerial Group goals
Sub-system Individual goals

Decision making
Goal setting
Psycho-social
Planning
Structural Sub-system
Assembling resources
Sub-system
Organizing resources
Attitudes
Implementing
Rules Perceptions
Procedures controlling
Motivation
Work-flow Group dynamics
Information flow Leadership
Task definitions Communication
Delegation (authority Interpersonal relations
structure) Human resources

Supra-system
(competitive
environment) Outputs from the
system
 Developing contextual competencies Reading the environment
• Scanning and intelligence functions
• Building bridges and alliances
• Forecasting and futurism
• Reframing problems to create new solutions
• Scenario planning
• Acting nationally and locally
• Identifying „fracture lines‟
• A new approach to social responsibility

Proactive management
Managing complexity
• Managing multiple stakeholders • Developing proactive mindsets
• Managing „from the outside in‟
• Managing many things at once
• Positioning and repositioning skills
• Managing transition

Riding the
Leadership and vision
Using information technology as a waves of • Using „vision‟ to frame action
transformative force change • Communicating an actionable vision
• Developing new products and services
• New network concepts of organization
Human resource management
• New work designs
• Valuing people as key resources
• Real-time decision making
• Developing abilities to relish change
• Planning with evolution in mind
• Blending specialist and generalist qualities
• Information management mindsets
• Managing in an environment of equals
• The key strategic role of software

Skills of remote management

• Helicoptering Promoting creativity, learning and innovation
• Managing through an „umbilical cord‟ • Developing an appropriate corporate culture
• Promoting self-organization • Encouraging learning and creativity
• Managing ambiguity • Striking a balance between chaos and control
• Making specialist staff „user-driven‟

An overview of some emerging managerial competencies

• Management is the planning, organizing, leading
and controlling of an organization to achieve a set of
objectives.
• Organization structure is an important (but not the
only) determinant of the behavior of individuals in
organizations
• Key trend is doing „more with less‟, the need to
address complexity and emphasis on people
management
• Systems view of management