topic 4 pb201 basic of business management june2013 student

8/9/2019 Topic 4 PB201 Basic of Business Management June2013 Student

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BASIC OF BUSINESS

MANAGEMENT

1

Maria MY PB201 Topic 4



INTRODUCTION TO MANAGEMENT

Every organization needsto establish several goals and objectives in order tocontinue competing andexisting in the industry.

Management activitiescan assist organizationsachieve these goals and

objectives.

Good managementpractices are the key indetermining the success

or failure of anorganization.

Management practicesare the machines thatmove an organization.

2Maria MY PB201 Topic 4



Definition of Management

Management is theprocess involves several

work activities and

functions that must be

followed and completed

by managers in order to

achieve organization

goals

Management as a careerrefers to the position or

rank of individuals holding

the designation of

managers in the various

levels of management

along their careerprogression.

Management is defined as aprocess to accomplishorganizational goals by workingwith humans and otherorganizational resources

CERTO

1997)




Functions of Management

ControllingLeadingOrganizingPlanning

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PLANNING

5




Planning

Planning is the first process of

management.

The planning process enables other

management functions such as organizing

controlling, leading, and discussion making

to be performed in the organization.

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http://slidepdf.com/reader/full/topic-4-pb201-basic-of-business-management-june2013-student 7/53Definition of Planning

Planning is also defined as a

process whereby managersform the organizational goalsand decide the most suitableaction to achieve the goals.

Planning is process ofmanaging all the individualsinvolved in the organizationand the variables from the

internal and external

environment of theorganization to achieve theset goals.

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Strategic Planning

Tactical Planning

Operational Planning




The Hierarchy of Planning

Mission

Goals

Overall

Objective

Area Objectives

Division Objectives

Department Objectives

Individual Objectives

Strategic

Planning

Tactical

Planning

Operational

Planning




Strategic Planning

Involves setting long-term goals and objective foran organization and selecting suitable actions to

allocate organizational resources in order toachieve these goals.

Also known as long term planning is performedby top – line managers or strategic manager




Tactical Planning

Tactical planningis performed by

middle-linemanagers or

tactical managersto achieve goals

set at the strategiclevel.

This type of

planning involvesshorter period of

time.

E.g.: Between one

and five years.

Also known as mid-

term planning.

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Operational Planning

This plan is develop and

determined by the first Line

managers or operational

manager. Involves a small orspecific scope such as jobunits or individual in the

organization

This type planning providesspecific guidance on the

roles an the responsibilities

of the relevant parties in the

organization in achieving

operational goals.

Perform for a time duration of

one year or less also knownas short Term planning.

Concentrates on thedevelopment of specific

targets or goals.




Planning Objectives

Planning objectives can be viewed in terms of the

importance of goals to an organization.

Provide adirection

Focus on effort

Drive

organizationalplanning and

decision making

Evaluate the organization’s and achievements

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Importance of Planning

Identifyinvestment or

businessopportunities

Identify suitablealternative

actions Reduce risk

Save cost Facilitate the

achievement ofgoals

Provideguidance

Facilitatecoordination

Understand theenvironment

Unsure theorganization donot stray fromoriginal goal.




The Process of Planning

Five 5) Basic Stages in the Planning Process

Setting GoalsDefining The

CurrentSituation

IdentifyingAssistance &Resistance

Developing ANew Set Of

Plans &Actions

Re-evaluatingGoals

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Problems

faced inpreparing

plans:

Managers face self-conflict in establishinggoals.

Employees refused toaccept changes in a plan.

Changes in the

environment.

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ORGANIZING

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Introduction Organizing

Organizing is pattern ofrelationship whereby

managers and employeesattempt to achieves the

same goals

These goals are the resultof the decision making

process performed by themanagers at the earlystages of planning

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Definition of Organizing

Organizing is an efficient way of managing

of organizational resources in order to

achieve the planned goals and objectives.

Organizing refers to the

coordination of human

resources and organizational

resources whereby jobs,

physical resources, or

financial resources allocated

within the organization.

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Importance of Organizing

It shows the job division or specialization a unit ordepartment bears a specific job burden and responsibilities

in organization.

It shows duties andresponsibilities and of each

department and organization.

It shows reporting therelation between managers

and subordinate.

It shows the job ofperformance in an

organization.

It shows the department orunit at each management

level in organizational

hierarchy.

20




The Organizing Process

ListingThe Jobs

DividingThe Jobs

EstablishingThe

Department

CoordinatingThe Job

PerformingEvaluation &Adjustment

21




Organizational Structure

The way each activity in an organization

is perform the way formal jobs are

allocated, the way resources optimally

allocated, and the way the departments

are coordinated allocated.

Shows the position of a unit or division in the

organization and the relationship between

each division in the organization.

Shows the type of job perform in theorganization and the relationship between each

job.

22




PRESIDENT

VICE

PRESIDENT

FINANCE

VICE

PRESIDENT

MARKETING

VICE

PRESIDENT

PRODUCTION

VICE

PRESIDENT

OPERATION

Functional Organization

Activities or task are grouped according toorganizational function such as production,

marketing, finance.

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Divisional Organization

Is a form of departmentalization wherebyactivities are grouped according to similarities

in terms of products, market, and geographical

location.

Divided into three 3)

types of

departmentalization

ProductDepartmentalization

GeographicalDepartmentalization

CustomerDepartmentalization

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Product Departmentalization

GENERAL

MANAGER

MANAGER

BUTTER

MANAGER

BEEF

MANAGER

FRESH MILK

25




Geographical Departmentalization

General Manager

Sarawak

Branch Manager

Johor

Branch Manager

Perak

Branch Manager

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Customer Departmentalization

GENERAL MANAGER

MANAGER

OFFICE

CUSTOMER

MANAGER

ORDINARY

CUSTOMER

MANAGER

INDUSTRIAL

CUSTOMER

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Matric Organization

Operates in a horizontal and

vertical organizational

structure whereby an

employee reports to two

supervisors such as the

division or line managers

and the functional or project

managers.

Also known as MultiCommand System .

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29

General

Manager

Production

Manager

Finance

Manager

Marketing

Manager

Production

Unit

Finance

Unit

Marketing

Unit

Project

A

Production

Unit

Finance

Unit

Marketing

Unit

Project

B

Production

Unit

Finance

Unit

Marketing

Unit

Project

C

Example of Matrix Organization



•Each employee will perform specificor specialized jobs according totheir skills, qualifications, andabilities.

Division ofLabour

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Delegation

Process whereby leaders or managers give

the rights or powers and responsibilities to

lower – level employees to perform certain

duties on their behalf.

31




DelegationConcept

Responsibilities

Accountability

Coordination

Power &authority

The obligations ofindividual to perform their

duties thoroughly.

Must be responsible fortheir own actions andperformances of their

employees.

Process of integrating anactivities in order to

achieve organizationalgoals.

The managers have theright to make decision ortake actions in order to

complete their givenduties.

32




Centralization and Decentralization

Centralization

•Refers to thesituation whereby

there is no

distribution of

power to

subordinates.

Decentralization

•Involves thedistribution of

power from the

management to the

employers.

Throughdecentralization,subordinates have

the authority tomake decision.

33




34




Introduction Leadership

Managers need to manage their employees

in different ways in order to achieve high

employee performance

Managers must understand

each employees performance

behavior and why he acts in a

certain in particular situation.

35




Concept of Leadership

The way managers give instructions to their

subordinate and influence them to perform

important tasks.

Through an effective leadership style

subordinate can perform their duties well.

36




Definition of

Leadership

As a process leading

and influencing team

members in job –

related activities

37


Leadership A



Leadership are identified based on 3 approaches:-

Trait

Approach

Behavioral

Approach

Contingency

Situational

Approach

38

Leadership Approach




Effective leaders as follows:

•Characteristic that differentiate

leaders from non leaders.

Trait

Approach

Leadershipmotivation

Desire to lead Honest

Confidence Intelligent Knowledgeable

39


B



Behavioural Approach

Emphasize leadership function and leadership style.

The mainleadership

style

Authoritarian

Democratic/

Participative

Laissez faire/

Free form

40




Contigency/Situational Approach

Identifies various factors that can influenceleaders behaviours.

Two 2) importants

contigency

models:

41


LeadershipSituational

Model

FiedlerContigency

Model



Motivation

Pushing factor for individual to act or perform a

certain task.

Can be defined as anything that causes channels,

and strengthen human behavior in order to get a

desire product or achieve a goal.

There are two 2) motivational theories :

Maslow’s

Hierarchy

of Need

Theory

Herzberg’s

Two

Factor

Theory

42




Communication

Involves the transfer of information between

two parties – the receiver and the sender.

Communication is defined as a process of

exchanging ideas, opinions, and information

that have certain objectives and are

presented personally or non personally

through the use of symbol, sign and signal ofachieving organizational goals.

43




Communication Method

V e r b a l

C o m m u n i c a

t i o n

N o n V e r b a l

C o m m u n i c a

t i o n

44


Individual



Disturbanceand barriers

in thecommunication

process

emotion orperceptionduring the

communicationprocessUsing

unsuitablechannel

Different powerand status

Different goals

Psychology andeconomic

factors

Lack of formalchannel in anorganization

45




CONTROLLING

46




Introduction Controlling

Control is the last functional chain in the

management process.

Through a control, manager can be

determine whether organizational goals

has been successfully achieved or

otherwise.

47




48

Definition Controlling

Process whereby manager ensure that

actual activities are conducted in line with

the planned activities and take corrective

action to correct any mistake that occur inorder to achieve organizational goals.




Concept in Control

All manager must

involve themselves in

the organization

control function

The criteria that

determines the

effectiveness of a

control system is how

far managers control

the activities that are

conducted to achieve

the organizational

goals.49

Importance of Control



Importance of Control

Internal and Externalchanges in anorganization

Organization’s size and

decentralization.

Mistake

Allocation of power andresponsibilities

50




Control Process

Set The Standards

Measure The Actual

Performance

Compare The Actual

Performance With The

Standards

Take Correction Action

51




Effective Control

Principles

Flexibility

Accuracy ofinformation

Timeliness

Focus on

importantfactors

Acceptance byemployees

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