lecture 1_effective organization mgt
TRANSCRIPT
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MGT4005EF Business
Organization and
Management
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Orientation
Contact Hours:
63 hours (60 teaching hours plus a 3-hour exam)
Medium:
English supplemented with Cantonese as appropriate (
Teaching notes and assessments are in English.)
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To introduce the basic principles of management,
business structures, and the operation of various
functional units within organizations.
Aim
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Learning Outcomes
Upon completion of the course, students should be able to:
a. Explain how an organization is structured, governed and managed by – and on behalf of – its stakeholders;
b. Identify and describe the key environmental influences and constraints on how the business operates;
c. Demonstrate knowledge of the characteristics of effective control systems in organizations;
d. Explain the basic concepts of marketing and marketing mix;
e. Identify and explain how major business functions are orchestrated to achieve business goals effectively
and efficiently in domestic and international operations;
f. Explain and compare the key elements of production and operations management in a manufacturing
business versus service organization;
g. Explain the role of financial management in organizations;
h. Recognize the principles of authority and leadership and how teams and individuals behave and are
managed, disciplined and motivated in pursuit of wider departmental and organizational aims and
objectives; and
i. Explain the role of the human resource management function in an organization.
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Assessment
Weighting
Continuous Assessment 30%
- Written assignment 10% - Test 10%
- Group project 10% Examination (3 hours) 70%
Total: 100%
Students must pass BOTH the continuous assessment and the examination in order to obtain a passing grade in this course. The passing mark is 50.
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Attendance
6
Attendance requirement: at least 80%
Attendance is calculated as follows:
a) Lateness or early departure not more than 15 minutes will be counted
as absence for 15 minutes.
b) 4 times of 15-minute absence will be treated as 1-hour absence.
c) Lateness or early departure more than 15 minutes will be taken as
absence from relevant class
(See Student Handbook for more details)
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Basic Class Rules
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The Instructor
Background
Roles at OUHK: Programme Leader / Lecturer
Academic qualifications
Doctor of Hotel and Tourism Mgt (candidate)
Master of Science in International Hospitality Mgt
Contact info
Office: Staff room on the 10/F
Tel: 3120-9866
E-mail: [email protected]
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Reflection
Briefly introduce yourself
Short reflection on your learning experience in the
Semester A, including:
Overall feelings
Any difficulties that you encountered
Any new/improvement plans for the new semester
…anything you would like share!
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Effective organizational management
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The various levels of management and the
function and inter-relationship of each
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Supervision
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Organizational Structure and Design
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Purpose of Organizing
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Organizational design – Work Specialization
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Departmentalization by Type
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Organizational Structure
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Organizational Structure
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Centralization vs Decentralization
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Common Organizational Design
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Strengths and Weaknesses of Traditional Organization Design
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Organizational Design Challenges
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Common Quality Management Techniques – Cost of Quality
1. Prevention costs
2. Appraisal costs
3. Internal failure costs
4. External failure costs
5. Opportunity costs
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What is quality management all about?
Try to manage all aspects of the
organization in order to excel in all
dimensions that are important to
“customers”
Two aspects of quality:
• features: more features that meet customer needs =
higher quality
• freedom from trouble: fewer defects = higher
quality
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The Quality Gurus – Edward Deming
1900-1993
1986
Quality is
“uniformity and
dependability”
Focus on SPC and
statistical tools
“14 Points” for
management
PDCA method
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The Quality Gurus – Joseph Juran
1904 - 2008
1951
Quality is “fitness
for use”
Pareto Principle
Cost of Quality
General
management
approach as well as
statistics
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History: how did we get here…
• Deming and Juran outlined the principles of Quality
Management.
• Tai-ichi Ohno applies them in Toyota Motors Corp.
• Japan has its National Quality Award (1951).
• U.S. and European firms begin to implement Quality
Management programs (1980’s).
• U.S. establishes the Malcolm Baldridge National
Quality Award (1987).
• Today, quality is an imperative for any business.
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What does Total Quality Management
encompass?
TQM is a management philosophy:
• continuous improvement
• leadership development
• partnership development
Cultural
Alignment
Technical
Tools
(Process Analysis,
SPC, QFD)
Customer
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Developing quality specifications
Input Process Output
Design Design quality
Dimensions of quality
Conformance quality
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Six Sigma Quality
A philosophy and set of methods companies use
to eliminate defects in their products and
processes
Seeks to reduce variation in the processes that
lead to product defects
The name “six sigma” refers to the variation
that exists within plus or minus six standard
deviations of the process outputs
6
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Six Sigma Roadmap (DMAIC)
Next Project Define Customers, Value, Problem Statement
Scope, Timeline, Team
Primary/Secondary & OpEx Metrics
Current Value Stream Map
Voice Of Customer (QFD) Measure
Assess specification / Demand
Measurement Capability (Gage R&R)
Correct the measurement system
Process map, Spaghetti, Time obs.
Measure OVs & IVs / Queues
Analyze (and fix the obvious) Root Cause (Pareto, C&E, brainstorm)
Find all KPOVs & KPIVs
FMEA, DOE, critical Xs, VA/NVA
Graphical Analysis, ANOVA
Future Value Stream Map
Improve Optimize KPOVs & test the KPIVs
Redesign process, set pacemaker
5S, Cell design, MRS
Visual controls
Value Stream Plan
Control Document process (WIs, Std Work)
Mistake proof, TT sheet, CI List
Analyze change in metrics
Value Stream Review
Prepare final report
Validate
Project $
Validate
Project $
Validate
Project $
Validate
Project $
Celebrate
Project $
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Continuous improvement philosophy
1. Kaizen: Japanese term for continuous improvement.
A step-by-step improvement of business processes.
2. PDCA: Plan-do-check-act as defined by Deming.
Plan Do
Act Check
3. Benchmarking : what do top performers do?
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Tools used for continuous improvement
1. Process flowchart
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Tools used for continuous improvement
2. Run Chart
Performance
Time
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Tools used for continuous improvement
3. Control Charts
Performance Metric
Time
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Tools used for continuous improvement
4. Cause and effect diagram (fishbone)
Environmen
t
Machine Man
Method Material
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The current process
Custome
r B
Operator Custome
r A
Receiving
Party
How can we reduce waiting
time?
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Makes
custom
er wait
Absent receiving
party
Working system of
operators
Customer Operator
Fishbone diagram analysis
Absent
Out of office
Not at desk
Lunchtime
Too many phone
calls
Absent
Not giving
receiving party’s
coordinates
Complaining
Leaving a
message
Lengthy talk
Does not know
organization
well Takes too much time
to explain
Does not
understand
customer
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Daily
average
Total
number
A One operator (partner out of office) 14.3 172
B Receiving party not present 6.1 73
C No one present in the section receiving call 5.1 61
D Section and name of the party not given 1.6 19
E Inquiry about branch office locations 1.3 16
F Other reasons 0.8 10
29.2 351
Reasons why customers have to wait
(12-day analysis with check sheet)
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Ideas for improvement
1. Taking lunches on three different shifts
2. Ask all employees to leave messages when leaving desks
3. Compiling a directory where next to personnel’s name
appears her/his title