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PUSAT PENDIDIKAN BERTERUSAN UNIVERSITI MALAYA UNIVERSITY OF MALAYA CENTRE FOR CONTINUING EDUCATION

Principles & Practice of Management


Lecturer: Fakir Mohamed Omar Din.
MBA(UKM)BBA (HONS)UKM DBS(UITM)SP(IPT) MIM.

Contact No.: 012-3534550 Email: famodin@hotmail.com

ARE YOU A MANAGER???

MANAGER vs MANAGEMENT?
Basically a manager is a decision maker ( a person who makes decisions ) The word management originated from 2 (two) sources
menege manu agere

French connection

Latin connection

WHY STUDY MANAGEMENT?

For two very important reasons (Donnelly)

1. First, the modern society today depends on

specialized institutions and organizations to provide the goods and services that we desire daily. These organizations are guided and directed by the decisions of one or more individuals called managers.

2.

Second, individuals who are not trained as managers often find themselves in managerial positions
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Why Study Management?


The

Value of Studying Management

The universality of management


Good management is needed in all organizations.

The reality of work


Employees either manage or are managed.

Rewards and challenges of being a manager


Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.

Importance of Management
According to Tripathi (1991), management as a discipline of study is important for the following reasons:

Management is a critical element in the economic growth of the country. Management is essential in all organized effort, be it business or otherwise. Management is the dynamic, life giving element in every organization.
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Definition Of Management
Mary

Parker Follet : Management is the .art of getting things done through other people.. A manager is one who contributes to the achievement of the organizations goals indirectly by directing the efforts of others and not by performing the task himself

Critics to MPF definition


It uses the word art in defining management This definition does not discuss anything on the various functions of the manager.

Management Management

= =

Science + Art Social Science.


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George R. Terry (1953).


Management

as a process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources According to this definition, management is seen as a process - a systematic way of doing things. The four management activities included in this definition are: planning, organizing, actuating and control

Donnelly (1987)
.management

as the process undertaken by one or more individuals to coordinate the activities of others to achieve results not achievable by one individual acting alone..

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According to Hellriegal & Slocum (1992)


.a

manager is a person who allocates human and material resources and directs the operations of a department or an entire organization

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The term manager covers many types of people


These

include managers of small businesses, chief executive officers of multinational corporations, plant managers and production supervisors both generalists and specialists. Managers are also found in non-profit organizations such as government agencies, religious groups, sports and recreational groups, and trade associations.
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Who Are Managers?


Manager

Someone who works with and through other people by coordinating and integrating their work activities in order to accomplish organizational goals.

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Classifying Managers
First-line

Managers

Are at the lowest level of management and manage the work of non-managerial employees.
Middle Top

Managers

Manage the work of first-line managers.

Managers

Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. 14

Managerial Levels

Exhibit 1.1 15

What Is Management?

Managerial Concerns
Efficiency
Doing things right
Getting the most output for the least inputs Involves the cost (means) element

Effectiveness
Doing the right things
Attaining organizational goals More inclined towards the end result
16

Effectiveness and Efficiency in Management

Exhibit 1.2 17

Managerial Functions
Management = Function(POLC) OR

M =
Whereby.. P

f (P.O.L.C.)
Planning Organizing Leading Control
18

O L C

= = = =

The Managerial Process

Planning

Organizing

Leading

Control

Feedback

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What Do Managers Do?


Functional

Approach

Planning
Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities.

Organizing
Arranging work to accomplish organizational goals.

Leading
Working with and through people to accomplish goals.

Controlling
Monitoring, comparing, and correcting the work.
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What Do Managers Do? (contd)

Management Roles Approach Interpersonal roles


Figurehead, leader, liaison

(Henry Mintzberg..10 roles in 3 categories)

Informational roles
Monitor, disseminator, spokesperson

Decisional roles
Disturbance handler, resource allocator, negotiator
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What Do Managers Do? (contd)


Skills

Approach

Technical skills
Knowledge and proficiency in a specific field

Human skills
The ability to work well with other people

Conceptual skills
The ability to think and conceptualize about abstract and complex situations concerning the organization
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Skills Needed at Different Management Levels

Exhibit 1.5 23

MANAGEMENT - SCIENCE OR ART?

Lubber Gullick (1965) defined management as a field of knowledge that seeks to systematically understand why and how men work together to accomplish objectives and make these cooperative systems more useful to mankind. He believed that management fulfills the three criteria for a science : it is founded on a body of theories which are studied and tested systematically against the experience. Management will become more of a science as research expands and theory can guide managers even more on what to do in a particular situation, enabling them to predict the consequence of their decisions.
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Pengurusan - Satu Profesion?


Untuk mengetahui sama ada pengurusan itu adalah satu profesion, kita harus lihat pada beberapa ciri yang boleh menjadikannya sebagai satu profesion(Gabriel, 1997). Ciri-ciri ini adalah : wujudnya satu kumpulan ilmu dalam bentuk teori atau prinsip-prinsip asas serta pengetahuan dan kemahiran khusus untuk ahliahli profesionnya. para profesional memperoleh status mereka melalui latihan yang dijalani dan prestasi kerja mereka. para profesional perlu taat setia pada satu kod 25 khas etika atau tingkah laku .

Adakah Pengurusan Satu Proses Sejagat?

Peter Drucker (1968) tidak terima idea bahawa pengurusan adalah sejagat ini, kerana objektif setiap organisasi serta persekitarannya di mana ia wujud berbeza-beza. Memang wujud halangan-halangan tertentu untuk proses pemindahan kemahiran mengurus ini bukan sahaja dari satu industri ke industri yang lain, tetapi juga dari satu industri ke industri yang sama di negara lain. Penghalang utama ini adalah kerana persekitaran dan budaya yang berbeza-beza .
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Pengurusan di Sektor Awam dan Sektor Swasta Ciri-Ciri


Tujuan/Objektif Akauntibiliti Penilaian Prestasi Insentif Diberi Penglibatan Kesatuan Pekerja dalam Pembuatan Keputusan.

Sektor Awam
Tanggung jawab sosial diberi keutamaan. Berkhidmat untuk masyarakat. Kepada rakyat secara umum, terutamanya apabila belanjawan dibahaskan di Parlimen Pencapaian kualiti hidup yang lebih baik.

Sektor Swasta
Memastikan penggunaan sumber secara optimum untuk menjanakan untung kepada pemegang syer. Kepada pemegang saham/pemilik syarikat Untung sesyer yang diperoleh serta peningkatan syer pasaran

Skala gaji tetap dan tatacara naik Kenaikan gaji dan pangkat, berkait pangkat yang rigid. Dapat rapat dengan prestasi kerja. menikmati jaminan kerja. Penglibatan yang tinggi. Secara tradisi penglibatan yang kecil atau tidak langsung, tetapi keadaan sedang berubah dengan penglibatan yang semakin sedang meningkat. 27

IMPORTANCE OF MANAGEMENT

Managers provide the direction in all kinds of organizations business, governmental, educational, religious and the service sector. Through these efforts, societal organizational and the individual employees objectives are achieved. Thus, managerial work is critical to everyone interested in the welfare of individual organizations and the society at large. Effective managers may be one of developed countries valuable resources and they are also one of the most needed resources in less developed countries (Peter Drucker, 1969).

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Universal Need for Management

Exhibit 1.11 29

Development of Major Management Theories

Exhibit 2.1 30

Major Approaches to Management


Scientific

Management General Administrative Theory Quantitative Management Organizational Behavior Systems Approach Contingency Approach

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History of Management
Management

has been practiced successfully for thousand of years .


The Great Pyramids of Cheops - 5,000 and 525 B.C. - made of 2,300,00 stones, each weighing an average of two and a half tons 100,000 people - 20 years to build The Great Wall of China The Taj Mahal The Romans Confucius & Lao Tze The Church - Jesus Nabi Mohamad S.A.W 32

Modern Management
Henry

R. Towne(1844-1924), co-founder of the Yale Lock company, presented a paper titled The Engineer as an Economist in 1886 at Chicago, USA, to the American Society of Mechanical Engineers. In this paper Towne stated:

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The Engineer as an Economist


There are many good mechanical engineers. There

are also many good businessmen, but the two are rarely combined into one person. But this combination of qualities, is essential to management of industrial works, and has its highest effectiveness if united in one person. And the management of works has become a matter of such great and farreaching importance as perhaps to justify its classification also as one of modern arts

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The Classical School of Management


Administrative

Management Scientific Management Personalities involved: - Henri Fayol, Max Webber, Frederick Winslow Taylor, Henri Gant, and Frank and Lillian Gilbreth.

35

Administrative management
Administrative

management was concerned primarily with how organizations should be managed and structured. The French businessman Henri Fayol and the German scholar Max Webber were the main contributors to the administrative management stream of classical management.
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General Administrative Theorists


Henri

Fayol

Believed that the practice of management was distinct from other organizational functions Developed fourteen principles of management that applied to all organizational situations

Max

Weber

Developed a theory of authority based on an ideal type of organization (bureaucracy)


Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism
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Administrative Management

Henri Fayol (1841-1925) He divided all activities of a business enterprise into six areas as shown below: 1 2 3. 4. 5. 6. Technical Commercial Financial Accounting Manageria l Function Protecting - producing and manufacturing of products. - buying raw materials and selling manufactured goods. - getting the capital necessary for business. - recording and taking stock of costs and profits. - planning, organizing, commanding, coordinating and controlling - protecting the assets of the company.

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HENRI FAYOLS 14 PRINCIPLES


1. 2. 3. 4. 5. 6. Division of Work. Authority. Discipline. Unity of Command. Unity of Direction. Personnel. Subordination of Individual Interests to the General Interest. Remuneration. 8. Centralization. 9. Scalar Chain (line of Authority). 10. Order. 11. Equity. 12. Stability of Tenure of 13. Initiative

7.

14. Esprit De Corps

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Administrative Management
Contributions 1. The classical school made planners aware that there are certain management principles that make for effective management, not only in business but in other fields as well. 2. This school isolated some areas of practical concern to managers that are still relevant today, e.g. the division of labour and the use of managerial authority.

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Administrative Management Limitations


Limitations
1.The main criticism of the classical school has come from those who believe that the business environment is too dynamic for the theory. For example, the managers formal authority cannot be assumed with todays workforce which is better educated and less likely to respond to an authoritarian leadership. 2. The classical theory is too general. For example, employees may report to more than one manager and the theory does not explain which managers wishes have precedence.
41

Scientific Management
Fredrick

Winslow Taylor

The father of scientific management Published Principles of Scientific Management (1911)


The theory of scientific management
Using scientific methods to define the one best way for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker.
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Taylors Five Principles of Management


1. Develop a science for each element of an individuals work, which will replace the old ruleof-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. 5. Management takes over all work for which it is Exhibit 2.2 better fitted than the workers.
43

Scientific Management

Time and Motion studies. Differential Pay. Reorganization of Supervision. Scientific Recruitment and Training Intimate, Friendly Cooperation between the Managers and Workers.
44

Frank

Scientific Management (contd)


and Lillian Gilbreth

Focused on increasing worker productivity


through the reduction of wasted motion Developed the microchronometer to time worker motions and optimize performance

They studied the brick-laying process and then successfully reduced the 18 steps involved in the process to 4 steps. By practicing the Gilbreth method a mason was able to lay 2700 units of bricks a day compared to 1000 units per working day prior to this. The brick-laying productivity increased from 120 units to 350 units per man-hour.
45

Scientific Management (contd)


Henri

Gantt (1861 1919)

The greatest contribution by Gantt is the Gantt Chart which is a part of the planning and control process and is used up till today. By using this chart a manager is able to quickly see the progress of the various stages of a certain project such as receipt of input, production and delivery.

46

Gantt Chart .eg.

47

Scientific Management (contd)


How

Do Todays Managers Use Scientific Management?


Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output

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THE BUREAUCRATIC APPROACH .

Max Weber (1864 1920), a German sociologist is known as the Father of Bureaucracy. The following are the pillars of bureaucracy: 1. authority and responsibility is clearly defined in detail. 2. the position in an organization is arranged according to hierarchy. 3. promotions are given based on qualification 4. all administrative decisions and actions taken are well recorded to ensure continuity. 5. there exists a difference in entity between the owners and the management of an organization, and 6. the existing procedures are applicable to all workers without fear or favour.

49

THE BUREAUCRATIC APPROACH .

Contribution. The bureaucratic approach holds a holistic view of the organisation and strives to increase efficiency so that the organisation exists in perpetuity. It differs from the scientific approach which gives attention only to the worker as an individual.
50

THE BUREAUCRATIC APPROACH .

Limitations . 1. Rigidity of procedures has led to excessive red tape and the decision making process is lengthened and takes a longer time. 2. Organisations that exercise excessive bureaucracy takes a longer time to change to the dynamic environment. 3. Occurs mismatch between doing a job professionally and at the same time adhering to set rules, procedures and processes.
51

Webers Ideal Bureaucracy

Exhibit 2.4 52

THE BUREAUCRATIC APPROACH .


WHAT

DO YOU THINK?

IS BUREAUCRACY NECESSARY?

53

Understanding Organizational Behavior


Organizational

Behavior (OB)

The study of the actions of people at work; people are the most important asset of an organization
Early

OB Advocates

Robert Owen Hugo Munsterberg Mary Parker Follett Chester Barnard


54

Early Advocates of OB

Exhibit 2.5 55

The Behavioural School


The

behavioural or human relations school of thought evolved because managers found that technical efficiency was not accompanied by harmony at the work place. There was a need to help managers to deal more effectively with the human aspect of management.

56

Hawthorne Studies

Elton Mayo (1880-1949) and his associates from Harvard conducted a famous study of human behaviour at the Hawthorne Plant of the Western Electric Company, Chicago. His final conclusion was that when people are accorded special attention they tend to increase their effort. This phenomenon has become to be called as the Hawthorne Effect.

57

Hawthorne Studies

The Test Room Studies(1924-1927) Mayo and his associates were testing the effects of variation in illumination on human efficiency. To everyones surprise, output increased in both the experimental and the control group regardless of the decrease in illumination to the twilight level. The findings showed that illumination was only one but not the most important factor that affected output of the workers.
58

Hawthorne Studies

This led to the next study which began in 1927. The group of women assemblers who volunteered for the experiment were put in a special test room. It was found that whatever the changes imposed on their working conditions (illumination, working hours, rest periods, room temperature, etc), the groups output continued to rise. There were no ill-effects of the changes on the womens health and they felt greater job satisfaction
59

Hawthorne Studies
Interviewing

Studies(1928-1931)

Twenty one thousand people were interviewed. Their finding showed that the reasons for an individuals dissatisfaction with the job cannot be easily identified.

60

Hawthorne Studies
The group of men and their supervisors were observed in their normal working conditions. The conclusions drawn were that workers in a group develop social relationships and form group norms. This informal organization affects the workers motivation and output. These studies showed that workers could no longer be considered as a factor of production but must be recognized as: SOCIAL BEINGS WHOSE WANTS, DESIRES AND FEELINGS INFLUENCED PRODUCTIVITY.
61

The Behavioural School

Contributions 1. The early behaviorist discovered that a genuine concern for the individual worker leads to increase in productivity. Mayo balanced the classical approach which treated production as an engineering problem exclusively and the scientific approach which looked upon the worker as a rational being. 2. Mayos teachings put an emphasis on the managers style and drastically changed the training of managers. The teaching of people skills now has become an important aspect of management training.

62

The Behavioural School


Limitations

While the concept of the worker as a social man did much to counteract the overemphasis on organization and rationality, the experience on the factory floor did not show drastic improvement in productivity as expected.

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The Systems Approach

System Defined
A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems


Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

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The Organization as an Open System

Exhibit 2.6 65

Implications of the Systems Approach


Coordination

of the organizations parts is essential for proper functioning of the entire organization. and actions taken in one area of the organization will have an effect in other areas of the organization. are not self-contained and, therefore, must adapt to changes in their external environment.

Decisions

Organizations

66

The Systems Approach

Contributions 1. The systems approach helped managers to accept conceptually that seemingly contradictory ideas underlying management theory were actually related. As a result, managers of different specializations have begun to look at how their work relates to the work of others in the achievement of organizations objectives.
2. The systems approach has made possible the better use of simulation models and operations research as in the development and refinement of the sub-systems. When computerized, these methods of problem solving save time and effort and help managers predict and thus avoid possible areas of conflict. In short, decision making is facilitated and improved.

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The Systems Approach

Limitations 1. The systems approach, while stressing the vital need to prepare the organization well in advance, is not able to help people adapt to change with current times. 2. The usefulness of this approach depends on the degree to which assumptions made about the inter-relationship of the subsystem and overall system reflect reality.
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Quantitative Approach to Management


Quantitative

Approach

Also called operations research or management science Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems Focuses on improving managerial decision making by applying:
Statistics, optimization models, information models, and computer simulations
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The Contingency Approach


Contingency

Approach Defined

Also sometimes called the situational approach. There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing.
70

The Contingency Approach


The

contingency approach attempts to integrate the various schools of management thought. According to this approach, management principles and concepts of the various schools have no general or universal applicability in all conditions. In other words, there is no one best way of doing things under all conditions.
71

The Contingency Approach


Contributions

The major contribution of the contingency approach has been to provide managers in real life situations with a method of decision making on all aspects of the internal and external environment.

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The Contingency Approach

Limitations Critics say that there is nothing new in the contingency approach. In fact, this approach has a little bit of everything from the classical to the systems approach. However, supporters of the theory point out that they have made the other theorists more aware that universal principles can be applied without the special circumstances unique to every management situation.
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Current Trends and Issues


Globalization Ethics Workforce

Diversity Entrepreneurship E-business Knowledge Management Learning Organizations Quality Management


74

Current Trends and Issues (contd)


Globalization

Management in international organizations Political and cultural challenges of operating in a global market
Ethics

Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses
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Current Trends and Issues (contd)


Workforce

Diversity

Increasing heterogeneity in the workforce


More gender, minority, ethnic, and other forms of diversity in employees

Aging workforce
Older employees who work longer and do not retire The increased costs of public and private benefits for older workers An increasing demand for products and services related to aging.
76

Current Trends and Issues (contd)


Entrepreneurship

Defined

The process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness.
Entrepreneurship

process

Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the
77

Current Trends and Issues (contd)


E-Business

(Electronic Business)

The work preformed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing component of an e-business
Categories

of E-Businesses

E-business enhanced organization E-business enabled organization Total e-business organization


78

Current Trends and Issues (contd)


Knowledge

Management

The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.
Learning

Organization

An organization that has developed the capacity to continuously learn, adapt, and change.
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Learning Organization versus Traditional Organization

Exhibit 2.10 80

THANK YOU

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82

Chapter 2

THE BUSINESS ENVIRONMENT


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THE BUSINESS ENVIRONMENT

An organization, whether business or non-business, exists in an ever changing dynamic environment.


No Organisation is an Island
84

The External Environment


PHYSICAL/MATERIAL

POLITICAL/LEGAL

ORGANISATION

ECONOMIC

SOCIAL/POLITICAL ECOLOGY

TECHNOLOGY

85

The Material or Physical Environment


use

and supply of land and raw materials the danger from pollutants and residues the availability of energy resources The availability of raw materials in certain parts of the world has determined the location of industries.
86

The Economic Environment


The supplier. Customers. The Investor. The Government. Competitors.

87

The Legal and Political Environment


The law sets out the operating conditions of most businesses, ranging from specific bans on certain kinds of behaviour, to regulations requiring the reporting of income and staffing at the various level of the organizations

88

The Legal and Political Environment


Companies have to comply with laws setting minimum health and safety standards; laws on employment practices; laws banning discrimination on grounds of race, religion, marital status and sex; industrial relation laws; and a whole host of other regulations specific to individual industries and businesses.
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The Social or Cultural Environment.


It is made up of the attitudes, customs, beliefs, education, etc. of people ant the society at large. The most important factors of this environment are the class, culture, age, sex and political beliefs of the people in it.

90

The Technological Environment


Recent developments in technology, especially information technology, have had an enormous influence on the ways companies operate. Computers have revolutionized product design and manufacturing; for example, the introduction of sophisticated automated or robotic machinery in the car production industry can now enable a group of people to do what required a mini organization just a few years ago.
91

The Internal Environment


The The The The

Power Culture. Role Culture. Task Culture Person Culture

92

The Power Culture


Power rests with a central figure of authority who exercises control through the selection of key individuals for important positions in the organisation. An organization with this kind of culture operates with few written rules

93

The Role Culture


The organization based upon the role culture is structured according to functions or expertise, for example the finance department, the personnel department, et
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The Task Culture


The task culture emphasizes the accomplishment of the task. In order to accomplish this task culture organization seeks to bring together appropriately qualified personnel in a team, and gives them he resources they need to do their jobs. The team members have a substantial amount of control over their work, and employees also enjoy mutual respect within the group, based upon capability rather than age or rank.
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The Person Culture


In the person culture the purpose of the organizations existence is to serve the individual. The individual is therefore the central point in this culture. Organizations based upon the person culture are rare usually they are family firms.
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THANK YOU

97

98

CHAPTER 3

PLANNING
99

The Nature Of Planning


Planning

is the process of setting goals and choosing the means to achieve those goals. plans, managers cannot know how to organize people and resources effectively.

Without

100

Characteristics of Planning
Planning

is the beginning of the process of management is an intellectual process which requires managers to think before acting.

Planning

Planning

is also a continuous process


101

Managers & Planning


Planning is important to all managers regardless of their level in the organization. However there are some differences in involvement at the different levels.
102

WHY IS PLANNING IMPORTANT?


Planning involves the setting up of goals and goals are important for at least four reasons (Stoner, 1995). Goals provide a sense of direction. Goals focus our efforts. Goals guide our plans and actions. Goals help us evaluate our progress.
103

Types Of Plans
Objectives.

Objectives refers to goals that the organizations intends to achieve.

GOALS = S.M.A.R.T.E.R.

104

SPECIFIC

M A R T E R

= = = = = =

MEASURABLE ATTAINABLE RATIONAL TME BASED EXCITING REWARDING


105

VISION

WHAT THE FIRM WANTS TO BE IN THE FUTURE


106

MISSION

HOW THE FIRM INTENDS TO AHIEVE ITS VISION


107

VISION & MISSION

VISION

VISION:

ONES PICTURE ABOUT THE FUTURE OR TARGET TO BE ACHIEVED


108 HOW TO ACHIEVE THIS TARGET ?

MISSION:

S.W.O.T. ANALYSIS
S = STRENGTHS W = WEAKNESS

T = THREATS

O = OPPORTUNITIES

109

Environmental Appraisal
This is an in-depth analysis of the relevant environment and results in the identification of threats and opportunities available in the firms external environment.
T & O COMPONENT IN SWOT ANALYSIS
110

INTERNAL APPRAISAL
REFERS TO AN ANALYSIS OF THE INTERANAL STRENGTHS AND WEAKNESSES OF THE COMPANY INVOLVES THE S & W COMPONENTS OF THE SWOT ANALYSIS
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Policies.
A

policy is a general guideline for decision making. In the words of George R. Terry (1977), policy is a verbal, written or implied overall guide, setting up boundaries that supply the general limits and direction in which managerial actions will take place.
112

Procedures.
Policies

are carried out by means of more detailed guidelines called procedures A procedure provides a detailed set of instructions for performing a sequence of actions involved in doing a certain job. The same steps are followed each time that particular job or activity is performed
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For example the procedure for purchasing raw materials


requisition from the storekeeper to the purchasing department. calling tenders for the purchase of materials. placing orders with the selected suppliers inspecting the materials purchased by the inspection department. making payments to the suppliers by the accounts department.
114

Methods.
A method is a prescribed way in which one step of a procedure is to be performed. A method is thus a component part of the procedure. For performing a particular step, an organization may have a number of methods.

115

Rules.
Rules are detailed and recorded instructions that a specific action must or must not be performed in a given situation. In providing overtime to workers, regulating traveling allowances, entertainment bills and other similar matters, a uniform way of handling them or dealing with the case has to be followed.
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Programmes.
Programmes are precise plans or definite steps in sequence which need to be taken to discharge a given task.

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Budgets.
According to the Institute of Cost and Works Accountants of London, a budget is a financial and/or quantitative statement prepared prior to a definite period of time, of the policy to be pursued during that period, for the purpose of obtaining a given objective. Budgets are plans for the future containing statements of expected results in numerical terms, i.e. dollars or ringgit, man-hours, product units, etc
118

Strategic and Operational Plans


Strategic and operational plans differ in three major ways (Hayes and Wheelwright, 1984).

Time Horizon Scope. Degree of detail.

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Strategic Planning

It decides the major goals and policies of allocation of resources to achieve these goals. It is done at higher levels of management. It is long term. It is generally based on long-term forecasts about technology, political environment, etc. and is more uncertain. It is less detailed because it is not involved with the day-to-day operation of the organization.
120

Operational Planning .

It decides the detailed use of resources for achieving each goal. It is done at the lower levels of management. It is short term. It is generally based on past performance of the organization and is less uncertain. It is more detailed because it involves the dayto-day operation of the organization.

121

ORGANIZING
An Organisation : For much of our lives, we belong to one organization or another-be it a class, a school, a club or an association. Organizations are formed so that people who share a common set of values or interest can work together towards achieving that common objective.
122

Organizations defined
Organizations are characterized by: the people or members of the organizations their common objectives the structure they develop to help them achieve these objectives

123

According to Amitai Etzioni (1965)

An organization is a social unit or a human grouping, deliberately structured for the purpose of attaining specific goals.

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The Task Of Organizing


Urwick (1958) defined the purpose of organizing from the view of theadministrator:

The purpose of organization is to secure that this division (the separation and specialization of task) works smoothly, that there is unity of effort, in other words, coordination.
125

The Organisation Process.

Detailing of Work Division of Work Departmentation Coordination of Work


126

Principles Of Organising

The Principle of Objective. Every part of an organization must be an expression of the purpose of the undertaking concerned, or else it is meaningless and, therefore, redundant.

127

Principles Of Organising

The Principle of Specialization. The activities of every member of any organized group should be confined, as far as possible, to the performance of a single function.

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Principles Of Organising

The Principle of Coordination. The purpose of organizing as distinguished from the purpose of undertaking, is to facilitate coordination and unity of effort.

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Principles Of Organising

The Principle of Authority. In every organized group supreme authority must rest somewhere. There should be a clear line of authority from the holders of supreme authority down to every individual in the group.

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Principles Of Organising
The Principle of Responsibility. Managers have absolute responsibility for the acts of their subordinates.

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Principles Of Organising

The Principle of Definition. The content of each position (the duties involved, the authority and responsibility it contains, and the relationship with other positions) should be clearly defined in writing and given to all concerned.

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Principles Of Organising

The Principle of Correspondence. In every position the degree of responsibility it carries and the authority it confers should correspond.

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The Principle of Span of Control. No person should supervise more than five, or at the most six, direct subordinates whose work interlocks.

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Principles Of Organising

The Principle of Balance. It is essential that the various elements of the organization should be kept in balance.

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Principles Of Organising

The Principle of Continuity. Organizing is a continuous process, and in every undertaking specific provision should be made or it (Urwick,1952).

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Departmentation

Departmentation is a method of grouping the related task, activities or units of an organization. There are two main method of departmentation : 1. by process or business function 2. by division
product region customer
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Types Of Organisational Structures


1. 2. 3. 4. 5. 6. 7. line line and staff pure functional line and functional staff committee. task force. the matrix organization.
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THANK YOU

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