STUDY MANUAL FOR

PRINCIPLES OF MANAGEMENT (IMD 104)

HAJAH SOBARIAH AWANG MUKHTAR Faculty of information Management UiTM, Puncak Perdana Shah Alam

PRINCIPLES OF MANAGEMENT
Overview of the course : Today management world has been developed tremendously. Organization place heavy demands on effective managerial skills to achieve their goals. Changes happens result from pressures on supply and demand, explosion of quality revolution, human resource development and the globalization of the economy that leads to competitive pressures and competition. This Manual was prepared to familiarize you with the field of management, environment changes and concepts and approaches of management. This course will provide an exposure for the student to the principles of management as they can applied and practice to the real world .

PRINCIPLES OF MANAGEMENT

CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Introduction to Management Evolution of Management theories Planning Organizing Controlling Managing Human Resource Total Quality Management Decision making Leadership Motivation Communication

PAGE

TEXT BOOK AND REFERENCES : Main Textbooks : 1. Robbins, Stephen P. and Decenzo david A. (2001). Fundalmental of Management : Essential concepts and application ( 3rd ed). New Jersey: Pretice Hall Stoner, A. F. Freeman, R. Edward and Gilbert Junior, Daniel, R Management , Prentice Hall. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice Hall, New Jersey,1993. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley and Sons. Institut Pengurusan Malaysia 1999. Management in Malaysia :Print Resources Sdn. Bhd

2.

3. 3. 4.

OBJECTIVES OF THIS COURSE ( CO) 1. 2. 3. 4. Ability to understand the scope of management theories and practices. Ability to identify and familiar with various environments that must be considered in managing people in an organization. Ability to recognize and apply the roles of a manager that have effect on the overall goals of the organization. Ability to be a good and success manager.

CHAPTER ONE OVERVIEW INTRODUCTION TO MANAGEMENT 1.0 WHY WE STUDY MANAGEMENT 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 DEFINATION OF MANAGEMENT, ORGANIZATION AND MANAGERS. MEASURING MANAGERIAL PERFORMANCE MANAGEMENT PROCESS LEVELS OF MANAGEMENT MANAGERIAL SKILL MANAGERIAL ROLES MANAGERIAL ACTIVITIES THE CHALLENGE OF MANAGEMENT

Learning objectives After completing this chapter, you should be able to : 1. 2. 3. 4. Define what is management Familiarize with the different types of organizations. Explain the levels of management and management functions Know the different types of managerial roles and activities.

1.0

WHY WE STUDY MANAGEMENT ? To enhance the understanding of events/ activities, challenges and skills that will give Meaning to our future work experience and careers as managers or other professional careers we may choose.

Make us become effective manager who will be able to help the organization achieve a high level of performance through the utilization of its human and material resources. Equip ourselves with effective management theories and practices that can be applied to all types of organization and any occupational settings we may choose to be in the future. Make us to become effective managers who will be able to detect and locate problems to be solve, thus making good decision about appropriate solution and utilizing organizational resources effectively to implement these solutions. Enable us to assess the future, make plans for it, thus acting as good planners. To be responsible and accountable for employees to be in the same track towards accomplishment of organizational goals.

1.1 a)

DEFINITION OF MANAGEMENTS, ORGANIZATION AND MANAGERS. MANAGEMENT: Earlier definition by Mary Parker Follet Management scholar as: The art of getting things done through people Stoner The process of planning, organizing, leading and controlling the efforts of an organization members and of using all other organizational resources to achieve stated organizational goal. Holt The process of planning, organizing, leading and controlling resources in an organizational

b)

ORGANIZATION: Is a social unit in which two or more people interact to achieve a common goal or a set of goal ( stoner) or As a collection of people working together in a division of labor to achieve a common purpose.( Schermerhon)

The structure of relationships that exists when two or more people mutually cooperate to pursue common objectives (Holt). TYPES OF ORGANIZATION: 1. Formal : Consist of two or more people who are involve in a mutual effort with formal authority to achieve common objectives ( Holt) 2. Informal organization The shadow organization consist of two or more people involved in a mutual effort without deliberate structures of authority or the necessity of the common objectives. c) A MANAGER A person in an organization who is responsible for work or performance of one or more other persons ( Schermerhorn). 1.2 MANAGEMENT FUNCTIONS Comprise of the activities of planning, organizing, leading and controlling.

Planning

- Includes defining goals, setting objectives and identifying alternatives, establishing strategy And developing plans to coordinate activities. - Concerned with assembling and allocating of resources in order to achieve goals, The identification and classification or required activities, the co- ordination of the horizontal and vertical information flow, The establishment of the organizational structure ( involve the creation of units, departments) and the ascertainment of a clear line of authority ( include regulation, rules and Achieving the organizations stated purpose ( Goal / Mission) procedures. Aim for maximum efficiency and minimum waste.

Organizing

1.3

MANAGEMENT LEVELS Leading - Aim to get all member to move in one direction. Includes motivating subordinates, directing a) First line managers others, selecting the most effective communication channels, and resolving conflicts. The lowest level in the organization is that at which individuals are responsible Controllingwork of others. First- activitiesfirst level that they aredirect operating - Monitoring line or to ensure managers being for the accomplished as planned and correcting any employees only: They do not deviations.other managers. E.g of standards,line significant supervise Involves the setting of first measurement of performance, correction of deviation the managers are the foreman or production supervisor in a manufacturing ,plant, instituting of feedback and feed forward controls, the budget and audit.

the technical supervisor in a research department, and the clerical supervisor in a large office. b) Middle managers Middle managers can include more than one level in an organization. Middle managers direct the activities of lower level managers and sometimes also those of operating employees. Middle managers principles responsibilities are to direct the activities that implement their organizations policies and to balance the demand of their superiors with the capacity of their subordinates. c) Top managers A comparative small group of executives, the top management is responsible for the overall management of the organization. It establishes operating policies and guide the organizations interactions with its environment. Responsible for with the vision and long term objectives Of the company.Typical titles of top managers are chief executives officer, president and senior vice- president. Actual titles vary from one organization to another.

MANAGER

By their level in the organization

By the range of organizational activities they are responsible -functional manager - General manager

-first line manager - middle manager - Top manager

1.4

MANAGEMENT SKILLS A managers job is diverse and complex, and requires a range skills. Three basic kind of skills : technical, human and conceptual Technical skill- Is the ability to use the procedures, techniques and knowledge of a specialized field. Surgeons, engineer, musicians and accountants. Human skill - The ability to work with, understand and motivate other people as individuals or in groups.

Conceptual skill ability to coordinate and integrate all of an organizations Interests and activities. Robert L.Katz. every manager needs all three but the amounts differ by their level in organization.

FIRST-LINE MANAGEMENT

MIDDLE MANAGEMENT

TOP MANAGEMENT

Conceptual Human

Conceptual Human Technical

Conceptual Human Technical

Technical 1.5 MANAGERIAL ROLES

The specific classifications of managerial behavior. According to Henry Mintzberg The nature of managerial work managers perform ten inter- related roles in the organization. Ten roles classified under three main roles : They are : 1. Interpersonal roles 2. Informational roles 3. Decisional roles 4. A. Interpersonal Roles 1. Figurehead - A department head performing ceremonial duties like greeting visitors, signing legal documents etc. 2. 3. Leader Liaison - A person who is responsible for hiring, training and motivating subordinates in the organization. - A person who perform and interacts with other people outside the organization.

The interpersonal roles are to help the manager in managing organization smoothly. B 1. 2. 3. Informational Roles Monitor - Manager continuously seeks information that can be use to advantage

Disseminator - Information received internally or externally will be transmitted to the subordinates , Spoke person - Information will be transmitted to people outside the organization or unit communicating

Thus, the informational roles are to assist the manager in receiving and information to make the right decision.

C. Decisional roles 1. 2. entrepreneur Manager tries to improved the unit and initiate the changes.

Disturbance handler - managers is responsible for corrective actions when the organization faces important, unexpected disturbances. organization

3. 1.6 Resources allocate - Manager is responsible in allocating the resources of the Managerial Activities 4. Managers are the people who deal with planning, organizing, leading and controlling. Negotiator Manager is responsible for representing the organization at major negotiations .

Organizing Determining what tasks are to Be done, who is to do them, how the tasks are to be grouped, who reports to whom and where decisions are to be made.

Production workers were assigned to different supervisor assembly lines / unit many productions activities were rearrange so as to achieve the goals Specified.

3. Leading Includes motivating, subordinates, directing, selecting the most effective communication channels, and resolving conflicts.

The production manager and supervisor have created a certain environment where workers will want to produce more so as to meet the target.

4. Controlling - monitoring activities to proton Ensure that they are being Accomplished as planned and Correcting any significant Deviations.

Since the sales of proton wira and Perdana exceed expectations management has add mare shifts to meet demand which will obviously increase the market share.

1.7

THE CHALLENGE OF MANAGEMENT In an environment which is rapidly and constantly changing, managers have to face and contend with a wide variety of challenges in pursuing their mission.

This challenges can and do influence the work of managers and affect the performance of the organization as a whole. If the managers do not closely monitor this challenges or changes in the organization environment or fail to respond quickly to this changes, they are likely to find their organization survival at a brink. Success goes to the managers who can recognize and seize the opportunities. The current challenges that are considered as the important factors that affect today business environment are: a) b) Globalization Services or business not a local focus but must be global Total Quality management Comprehensive effort to enhance an organization product or service quality and reduce cost. Social responsibility and ethic Focus on what an organization does affects the society in which ethics is the discipline dealing with what is good and what is bad or right or wrong or with moral duty or obligation. Organizational restructuring and consolidation. Concept where organization is slimming down or downsizing operations in order to focus on resources and boost profits or decrease expenses. This trend will shape the managers environment through the movement towards more streamlined, efficient organization. Re- engineering A radical rethinking and re-designing organizations processes to achieve drastic improvements in performance ( Micheal Hammer) Empowerment. Current and poses another new challenge to management and organizational today. An approach that involves granting employees the freedom and responsibility to do their job as they think best, without constantly having to appeal to higher authorities for permission. This will enable employees to make quick decision without getting caught through the ladder of beauracracy so they will be able to serve customers more effectively.

c)

d)

e)

f)

ACTIVITY Can you define the following terms in your own words? Management Human skill Organization manager Technical skill Division of labor Conceptual skill

Management functions Organizing Controlling Interpersonal roles Re-engineering Restructuring Top managers THINKING EXERCISE 1. 2.

Management process leading efficiency Decisional roles Total quality management First-line managers Functional manager

planning Effectiveness Informational roles Globalization Empowerment Middle managers General manager

What is management and what is organization ? List and define four (4) management functions. Give examples of how they would be used by the following person(s). a) High School principal b) Information professionals Why we need to study management?

3.

REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall.

CHAPTER TWO OVERVIEW EVOLUTION OF MANAGEMENT THEORIES

1. 2. 3. 4. 5. 6.

THE FORMATION OF MANAGEMENT PRACTICES PRE CLASSICAL VIEW POINT CLASSICAL VIEW POINT BEHAVIORAL VIEWPOINT QUANTITATIVE SCIENCE APPROACH CONTEMPORARY VIEWPOINTS

Learning Objectives : After completing this chapter student will be able to: 1. 2. 3. 2.0 Understand the beginning of management practice Explain several management theories . Apply several techniques of management practice. EVOLUTION OF MANAGEMENT THEORIES Begin from ancient civilization. Organized management practice in 2000 B.C during King Hummurabi. Great Pyramid in Egypt, 100,000 workers involve. Egyptian use mathematical to organize labor, supervise to built within specified design and time. China Sun Tzu War, touching on strategy, planning and leadership use by military strategy. 2.1 THE FORMATION OF MANAGEMENT PRACTICES Management thought started with industrial revolution around 1800. This point saw the invention and use of machinery setting up factories and creation of entrepreneurial capital that finance the industries. People think ways to improve efficiency and effectiveness.

2.1.1

Pre classical view point. The factories became widespread and large number of employees need to be coordinated. Therefore the challenge had motivated a number of individuals to think of ways and means to run the factories more effectively.

Management theories can classified into 5 view points that are : Pre classical view point Classical view point Behavioral view point Quantitative view point System view point

PRE CLASSICAL CONTRIBUTORS a) Robert Oven ( 1772-1858) A British entrepreneur and had a cotton mill in Scotland. 400-500 young children who worked 13 hrs (11hrs/2hrs off for meals) Concerned for the working and living condition of workers. Tried to upgrading streets, houses, sanitation, educational system. Charles Barbage ( 1792-1871) Known as father of modern computing English mathematician, pioneered in computing and management. The idea of work specialization work is divided into various jobs. Recognized specialized physical work as well as mental work ( specialists Invented a profit sharing plan _ a bonus for useful suggestions and portion of wages that was dependent on factory profits. Ideas used in scanlon plan. Henry R. Towne ( 1844-1942) A Mechanical engineer, president of Yale and Towne Manufacturing company. Observed good engineering skills and good business skills were rarely combined but both were equally important to run organization. Outlines the importance of management as a science Called for the development of management principles.

b)

c)

2.1.2

CLASSICAL VIWEPOINT A perspective on management that emphasizes finding ways to manage work efficiently. Three different approaches : a) b) c) Scientific management Bureaucratic management Administrative management

1.

SCIENTIFIC MANAGEMENT

Approach that emphasizes findings ways to manage work efficiently. Three different approach are: a) Frederick Winslow Taylor ) 1856-1915) The father of scientific management. Observed soldering by employees- working at less than full capacity meaning feared that, Increasing their productivity would cause them or others to lose jobs. Faulty wage system encourages workers to operate at slow pace. Generate rules handed down were inefficient.

Thus, developed science management : 1) 2) 3) 4) Scientifically study each tasks and develop the best method for performing the tasks. Carefully select employees, train them by using scientifically developed method. Cooperate fully with employees to ensure them using proper method. Divide work and responsibility. Management will plan work method using scientific principles and employees are responsible for executing the work accordingly.

Frederick made use of time and motion study to substantiate his theories and increase productivity. He divide work into different task. He redesigned the work, improve production by his principle- management should develop a science for each tasks to be performed. b) Frank and Lilian Gilbreath ( 1868-1924) A brick layer Observed inefficiencies were handed down from the inexperienced employees propose motion studies to streamline the brick lying process. Lilian define scientific studies management must focus both analysis and synthesis- which will help people to reach their maximum potential by developing their skill and abilities. Henry L Gantt (1861-1919) Gantt chart graphic aid to planning, scheduling and control. Management tool that helps managers to schedule their work.

b)

2.1.3

BUREAURATIC MANAGEMENT a) Max Weber (1864-1920)

German sociologist An approach that emphasizes the need for organizations to operate in a rational manner. (Ideal organization where activities and division of labor were clear, formal rules, procedures, people promoted on merit) DESCRIPTION Jobs broken down into routine, so that members know what is expected from them thus, become more competent. to ensure uniformity and facilitate coordination Rules, policies and sanctions are applied uniformly without prejudiced. Multiple level of positions, carefully reporting relationships among levels, provide supervision of lower offices by higher offices based on Selection and promotion based on the qualifications merit and performance of members.

CHARACTERISTICS Specialization of labor

Formal rules and procedures Impersonality

Well defined hierarchy

Career advancement

2.1.4

. ADMINISTRATIVE MANAGEMENT An approach focuses on principles that can be used by managers to coordinate the internal activities of organizations.

1.

Henri Fayol (1841-1925) -French industrialist -Outlined a number of principles in management : a) Diversion of work Will result in efficiencies applicable to both managerial and technical functions. The right to give orders and power to exact obedient. With authority comes responsibilities. Necessary to run the organization, it depends on the worthiness of its leaders.

b) Authority

c)

Disciplines

d) e) f)

Unity of command Unity of direction Subordination of individual

Employees should received orders from one superior only. Activities aimed at the same objective, one plan and one person in charge. The interest of one group of employees should not interest to general interest prevail the interest of the organization. Compensation should be fair to both the employee and employer. The amount depends on situation. Objectives is to optimum use of the capabilities of personnel. A scalar chain of authority extends from the top to bottom of an organization and defines the communication path .Horizontal comm.. is also encourage as long as managers are informed. Materials in the right place, easy to retrieve and facilitate activities. Select right employee for the right place and right time. Employees treated with kindness and justice. High turn over is not rate will effect the functioning tenure of organization. managers encourage and develop subordinates initiative to the fullest. Promoting team spirit unity in organization

g) h)

Remuneration Centralization

i)

Scalar Chain

j)

Order

k) Equity l) m) n) 2. Stability of personnel Initiative Esprit de corps

Chester Barnard (1886-1961) Acceptance theory of authority- argues that authority does not depends as much on persons of authority who give orders as on the willingness to comply of those who receive orders. Employees willing to accept orders if they understand the communication, see the communication consistent with the objectives of organization, feel that the actions indicated are inline with their need and other employees and view themselves as mentally and physically able to comply. Managers real powers come from the degree of acceptance of his workers. BEHAVIORAL VIEWPOINT Emphasizes the importance of attempting to understand the various factors hat affect human behavior in organizations.

2.1.5

1) Early behaviorist: Hogo Munsterberg ( 1863-1916) Mary Parker Follet (1868 1933) a) Hugo Munsterberg Interested in identifying the conditions that would promote the individuals best work and finding ways to influence workers to act in accord with management interest. Mary Parker Follet Focus in group dynamic- employees work together. Power sharing Conflict resolution Integration of organizational system Hawthorne studies A group of studies done at Hawthorne plant of Western Electric company. 1920s- early 1930s : Monitored the five women assembling electrical relays. Found that the women still increased their productivity period. Concluded that the increase of productivity was due to the change of supervisory arrangement that had been made to facilitate the experiment. = Hawthorne effect improve performance, may be due the added attention they receive from researchers, rather than specific factors been tested. 2) Human Relation Movement Two theorist : a) Abraham Maslow (1908-1970) Contribute to the theory of motivation hierarchy of needs. Once has satisfy basic need before other can be taken care. This Dictated peoples motivation to perform task. Physiological need ( lowest) Safety Belongingness Esteem Self Actualization Douglas Mcgregor (1906-1954)

b)

d)

i) ii) iii) iv) v) b.

Theory X and Y managers view their workers in one of the categories. Theory X assume employees are lazy, little ambition, focused on security needs. Theory Y- Employees are capable of self control, have capacity to be creative, higher level need are often unmet on job. Conclusion managers who assume best of their employees are rewarded with committed and satisfied workers.

2. Behavioral Science Approach Emphasizes scientific research as the basic for developing theories about human behavior in organizations- can be use to establish practical guidelines for managers. It include management, psychology, sociology, anthropology and economics. managers can be used as guides in assessing various situations and deciding appropriate actions. Employees do better with attainable goals than without goals.

2.1.6

QUANTITATIVE MANAGEMENT VIEWPOINT Emerged as a major force in world war 2 Focuses on the use of mathematics, statistics and information aids to support managerial decision making and organizational effectiveness. 1. 2. 3. 1. Management science/ operation research Operation management Management information systems

Management science/ operation research Aimed at increase decision effectiveness through the use of sophisticated mathematical models and statistical methods. Operation Management The function/ field of expertise for managing the product and delivery of an organizations products and services. E.g work scheduling, production planning, inventory analysis. Management Information System The field of management that focuses on designing and implementing computer based information systems for use by managements . e,g system that run raw data to information- use by the organization.

2.

3.

2.1.7

CONTEMPORARY VIEWPOINTS Major innovations in ways of thinking about management: System theory Contingency theories 1. System theory An approach based on the assumption that organizations can be visualized as a systems. System A set of interrelated parts that operate as a whole towards a common goal. Components of system Inputs Human material, financial, equipment and informational

Transformations Process Feedback

resources required to produce goods and services. Managerial and Technological Abilities: Planning, Organizing, Controlling and technology to converts inputs into outputs. Information about result and organizational status relative to the environment

Advantages of Systems approach : can be analyze at different levels. Providers a framework for assessing how well the various parts of an organization interact to achieve common goal. Emphasize that a change in one part can affect others It considers how an organization interacts with its environment- better to operate in open system. Open System Closed system 2. Contingency Theories View point arguing that appropriate action depends on the particular parameters of the situation. Identifies contingency principles to take action on the situation. A system that operates in continual interaction with its environment. Does little or no interaction with environment, receives little feedback.

Successful companies operated differently depending on their technology categoryappropriate actions by managers depend on situation.

ACTIVITY : 1. 2. 3. 4. How did Industrial Revolution Influence Management Practice? Why did scientific management receive so much attention?. What were the Hawthorne studies? Why was the human relations movement important to management history?. What is contingency approach to the study of Management?.

REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall.

CHAPTER THREE OVERVIEW PLANNING

3.0 3.1 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10

DEFINITIONS OF PLANNING AND PLANS IMPORTANCE OF PLANNING IN ORGANIZATIONS TYPES OF PLANS GOALS OBJECTIVES OPERATIONALIZING MANAGEMENT BY OBJECTIVE STRATEGIC PLANNING MISSION BARRIERS IN PLANNING

Learning objectives: After completing this chapter, student should be able to : 1. 2. 3. 4. Explain the differences between planning and plans. Explain the importance of planning Explain what is goals and Objectives Apply various types of plans in planning

3.1 3.1.1

DEFINITION OF PLANNING AND PLANS PLANNING

Important to all organization. It is important because organization are effected by change, economic, politic and social. Planning allows us to be more certain and to plan for the future. A process that begins with objectives, defined strategies, policies and detailed plans to achieve them. Planning establishes an organization to implement decisions and includes a review of performance and feedback to introduce a new planning cycle. (STEINER) OR Planning may be broadly defined as a concept of executive action that embodies the skill of anticipating and controlling the nature and direction of change ( MC FARLAND) OR The process of determining in advance what should be accomplished and how it should be realized. ( MONDY) . Based upon the definition stated above, you can infer that plans should be: 1. 2. Formally prepared Observable, factual, logical and realistic

Planning is a pervasive and continuous executive functions involving complexes processes. Planning is an important managerial functions. A manager must plan ahead to get things done through his subordinates 3.2 PLANS According to Mondy, plans are statement of how objectives are to be accomplished. As a manager, whether he is top manager or lower level manager, he has to plan. Through planning, managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. Whatever activities are planned by the managers, there are several questions that need to be asked to realize the organizations goals. 1. What activities are required to accomplish the objectives? 2. When should these activities be carried out? 3. Who is responsible for doing what? 4. Where should the activities be carried out? 5. When should the action be completed?. 3.3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS Why do managers in organizations have to plan? Why do you have to plan? What is this activity important to an organization?

The reasons are : 1. Planning helps to determine what opportunities there are to exploit. In other words, the profitable alternatives that exist are identified through a planning process.

2. 3. 4. 5. 6. 7. 8.

Planning enables us to identify the course of action by setting objectives and choosing alternatives that will be most profitable. Without proper plans much will be left to chance an therefore to risk. Through plans, resources are efficiently and effectively utilized, thus resulting in saving. What is really happening become more meaningful expected. when we know what is really

It help to achieve goals and reduces random activities and needless overlapping. It provides for effective utilization of available facilities of an enterprise. It assists a manager in attaining confident and aggressive leadership. By means of planning, a manager successfully copes with his affairs and problems, rather than allowing them to dilute and negate his efforts. Not to plan is to manage as a results of events rather than by use of foresight influence an action. Planning can point out the need for future changes. It can reveal opportunities for new services. It guides management thinking to future desirable activities and spells out how best to make the shift and what must be done to attain goals. THE PURPOSE OF PLANNING To help organization reach it objective Minimize risk by reducing uncertainties Increase the degree of organizational success To establish a coordinated effort within organization BENEFITS OF PLANNING Better coordination Planning provides a foundation for the coordination of a broad range of organizational activities. Plan helps to define the responsibilities of individuals and work groups and helps coordinate their activities.

9.

3.4

3.5

Focus on forward thinking The planning function forces managers to think a head and consider resource needs and potential opportunities or threats that the organization may face in the future. Participatory work environment Successful planning requires the participation of a wide range of organizational members.

More effective control system The implementation of the plan can be evaluate and progress toward the achievement of performance objectives can be monitored. An organizations plan provides a foundation for control of the process and progress of the organization. Controls provide mechanism for ensuring that the organization is moving in the right direction and making progress toward achieve its goals.

3.6 3.6.1

MAJOR COMPONENT OF PLANNING GOALS: Future target or end result an organization wishes to achieve. Desire outcomes for individuals, groups and organizations. Provides the direction for all management decisions. Often called as foundation of planning

Goal is one type of plan. Setting goals gives people a sense of control that leads the action. Accomplishing goals leads to self- confident, Greater risk taking and more action. So, what are goals?. Goals are the ends toward which activities is aimed. Weather a firm new or old, large or small it must set goals. Goals is organizations provide the ends towards which people direct their efforts. Goals that are clearly established an properly communicated to employees stand the best chance of being reached. Well defined goals provide a solid basis for managers to organized, lead and control their departments or company successfully. 3.6.2 Characteristics of setting goals are: 1. 2. 3. The goal must precise, specific and meaningful. The goal must be clear and coordinated The goal must be include long term and short term plans to be successful.

Example of a Goal: The goal of every manager is to create a clear and verifiable objectives that facilitate measurement of a effectiveness and efficiency of managerial actions.

3.6.3

TYPES OF GOAL : 1. Purpose

It is define as an intention to produce a specific good or service. E.g to develop, manufacture and market pharmaceutical products that assure strong growth and profitability. 2. Mission It is the purpose or reason for the existence of an organization. The mission of an organizations is its products or services or markets or customers .e.g, marketing pharmaceuticals products can be the mission of a drugs manufacturing company. Objective It is an estimated end result expected in the future. Objectives are established at organizational, departmental or individual level. Increasing the accounts handled from 20 to 25 percent within the next year, can be an objective of a salesman. Strategy It is the method of shaping a companys future and involves determining the long run direction of the organization. A company may have the strategy diversifying into related businesses within the next few years. Resource allocation It distributes money, personnel, plant and equipment, land and other tangible means of production for various uses.

3.

4.

5.

3.6.4

IMPORTANT OF GOAL Provide sense of direction Reacting to environmental change. People in organization bolster their motivation and gain a source of inspiration that help to overcome the inevitable obstacles they encounter. Organization will establish priorities and make a commitment about the way they will use their scarce resources. and Help to shape long term plan to make decision.

Focus on effort

Guide our decisions

plan

Goals helps evaluate our Become a standard performance that lets process individuals and managers like evaluating their progress.

3.6.5

SETTING A GOALS 1 MISSION Purpose or reason for the existence of an

2 3

OBJECTIVE STRATEGIES

organization ( product, services, markets and customers) It is estimated end result expected in the future. It si established at organizational, departmental or individual level. Method of shaping organizations future and involves determining the long run direction of the organization to achieve the objectives.

3.7 3.7.1

LEVELS OF PLANS Operational Plan In planning, managers have to make use of the different types of operational plans for the effectiveness of the organization. This operational zing strategy is done at all levels and involves directing the organizations day to day operations to achieve overall strategic objectives consistent with the organizations mission and policies. There are two types of operationalizing strategy ( operational plans) Single use plans It is a detailed course of action that probably will not be repeated in the same form in the future. It is designed for a specific purpose or period. The plan ceases to exist when the goals are achieved. Single use plans consists of program, project and budgets. Programs Deals with the who, what, where, when, how, and how much of an activity. It covers a relatively large set of activities whereby it indicates: - Major steps that are required to reach an objectives. - The organization unit or member involved for each steps. - The order and timing of each steps. Program are the actual course of action designed to carry out the established objective. Usually the programs may be accompanied by a budget for the activities required. Projects Are similar to programs but smaller because each project has a limited scope and distinct directive concerning assignments and time. Projects are short-term in nature. Budgets Statements of financial resources set aside for specific activities in a given period of time. Budgets are plans that commit resources to activities, project or programs.

b.

Standing Plans

These plans serves as guidelines to managerial action and are designed to be used again and again, These plans bring consistency to the operations. They exist in the form of policies, procedures and rules. Policies policy is a standing use plan that communicates broad guidelines for making decisions and taking action. It indicates what is permitted and what is not. Policies found in all aspects of an organization. Procedures These are a series of steps in which activities are to be carried out. e.g, how to operate a Photostat machine or how to handle employee grievances. Rules These are very specific actions to be taken or not taken with respect to a situation. E.g are wearing uniforms or reporting to work at a particular time.

3.7.2

STRATEGIC PLAN. Process of making long term choices about an organizations mission, overall objectives, strategies, policies and resource allocations.

3.7.3

TACTICAL PLAN Making detail, short term decisions of what to do, which will do and how it is to be done. Developing annuals budgets for projects and departments. Choosing specific means of implementing strategic plans.

3.8 PLANNING PROCESS Stating organizational objectives Listing alternatives ways of reaching objectives Developing premises upon which each alternative is based

Choosing best alternatives for reaching objectives

Developing plans to pursue chosen alternatives Putting plan into action

3.9

OBJECTIVES Objectives are the prime parts of the plans and are vital to an organization because all the efforts an activities are focused on this objectives . They provide a direction in which the organization should move. They serve as standards of performance against which actual performance may be compared and it is an important dimension of the control process. Objectives determine the role an organization should play in a given environment. The efforts an activities of the members of an organization can be coordinated with the help of objectives. A high degree of motivation can be maintained by setting objective for a members of the organization an enabling them to achieve to those objectives.

3.9.1

The nature of objective: 1. Hierarchy of objectives_ It is a series of objectives linked to one another at the various levels of management such that each higher-level objective is supported by one or more lower- level ones.

3.9.2

A hierarchy of objectives is important to any organization because: a) b) c) d) e) It helps to ensure the proper alignment of all organization levels with the organizations purpose. It helps to coordinates decision at all levels It provides a basis for establishing standards facilitating performance measurement at all management levels. It helps to avoid sub- optimization, that is, having some sub- units accomplish their objectives at the expense of the other sub- units in the organization. It helps to prevent displacement of objectives where it means become more important than ends that were original intended.

3.9.3

RELATIONSHIP HIERARCHY

OF

OBJECTIVES

AND

THE

ORGANIZATIONAL

HIERARCHY OF OBJECTIVES
Board of directors Socio economic purpose 1 Mission 2 Overall objectives of the organization ( LR strategies ) 3 More specific overall Objectives ( key result areas) 4 Division objectives 5 Department and unit objectives 6 Individual objectives - performance - Personal development objectives Organizational hierarchy Lower level managers Middle level managers Top level managers

3.9.4

EXPLAINATION:

1. The purpose of society that requires the organization contribute to the

welfare of the people by providing good and services at a reasonable cost. 2. The purpose of the business, which might be furnish convenient, low-cost transportation for the average person. 3. The stated mission might be to produce market and service automobiles. These aims are then translated into general objectives or strategies, like designing, producing, marketing a low- cost, fuel- efficient automobile. 4. At the next level of the hierarchy, you find more specific objectives such as those in the key result areas. These are the areas in which performance is essential for the success of the enterprise. 5. These objectives have to be further divided into division department and unit objectives down to the lowest levels of the organization. 3.10 MANAGEMENT BY OBJECTIVE 3.10.1 DefinitionA management that uses organizational objectives as the primary means of managing organizations. Popularize through the writing of Peter Drucker. MBO- strategy has 3 basic parts: 1 2 3 Individual within an organization are assigned a specialized set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by individuals and their managers. Performance reviews are conducted periodically to determined how close individual are to attaining their objectives. Rewards are given to individuals on the basis of how close they come to reaching the goals.

3.10.2 MBO PROCESS 1 2 3 4 5 Review organizational objective Set worker objective Monitor progress Evaluate performance Give rewards Manager gains a clear understanding of the organizations overall objectives. Manager and worker meet to agree on worker objectives to be reached by the end of the normal operating period At intervals during the normal operating period, the manager and worker check to see if the objective are being reached At the end of the normal operating period the workers performance is judged by the extend to which the worker reached the objectives. Rewards given to the worker are based on the extent to which the objectives were reached.

3.10.3 SUCCESSFUL MBO PROGRAM 1. Top management must be committed to the MBO process and set appropriate objectives for the organizations.

2. 3. 4.

Managers and subordinates together must develop and agree on each individuals goals. Employees performance should be evaluated. The evaluation helps to determine whether the objectives are fair. Management must follow through an employee performance evaluation by rewarding employees accordingly.

3.10.4 ADVANTAGES AND DISADVANTAGES OF MBO ADVANTAGES MBO programs continually emphasize what should be done in an organization to achieve goals. MBO process secure employee commitment to attaining organizational goals. 3.11 STRATEGIC PLANNING 3.11.1 Definition: Long range planning focus on the organizing as a whole. It need managers to considers the organization as a total unit and ask themselves what must be done in along term to attain organizational goals. 3.11.2 Strategic Management: Definition: The process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy. Strategic Management Process : Strategy impleme ntation Strategic control DISADVANTAGES Time consuming leaving both managers and employees less time to do actual work. Increase the volume of paper works (Elaborate goals, communication of goals etc)

Environme ntal analysis - General - Operating - Internal

Establishing organizationa l direction - mission - objective

Strategy formulati on

3.12 RGANIZATIONAL MISSION 1. Determining the organizational mission - Very broad statement of organizational direction.

2.

Purpose of which the reason why an organization exists. Reflects such information such as what types of product/ services, customer tend to be and the important values its hold.

Developing a mission statement Mission statement is a written document develop by management, normally based on input by manager as well as non managers that describes and explains what the mission of an organization actually is. Mission express in writing to ensure that all organization members will have easy access to it and understand exactly what the organization is trying to accomplish. Important of Organizational mission Help managers focus on human effort in a common direction Serve as a sound rationale for allocating resources Help managers define broad but important job area within an organization and therefore critical jobs that must be accomplish.

3.

3.13 BARRIERS TO AN EFFECTIVE PLAN Demand on the leaders time Ambiguous and uncertain operating environment Resistance to change

3.14 OVERCOMING THE BARRIERS TO PLAN - Involve employees in decision making - Input from all levels of organization is essential for successful planning. - Tolerate a diversity of views - Diverse view lead to a broader assessment of organizational problems and opportunities - Encourage strategic thinking - Effective strategic thinking can be developed through training and practice. 3.15 BARRIERS IN GOAL SETTING AND PLAN 1. Managers resistance to plan: - Fear of failure-be blame for being a poor decision maker. - Lack of knowledge new goal will conflicting with the one that they are used. - Insufficient knowledge of environment only know internal and external environment may confuse managers. - Lack of confidence- difficult to change their management and leadership style. 2. Employees resistance to change - Uncertainty about the causes and effect- worries about negative effect to their work and daily life.

Uncertainty about the job- may need to do extra work or transfer to another area.

3.16 OVERCOMING BARRIERS TO PLAN 1. Managers Develop and improve communication system Develop program that enable them to establish contact with the various department. Training and managers development program. Training skill that enable them to increase their knowledge and skills. Recognition and reward. Provide support, give recognition and rewards for accomplishment of tasks among managers. Employees: a. Allow employees involved in planning process. b. Give detailed information about the plans. c. Plans and changes must guaranty that none of the employees will be affected ACTIVITY : 1. 4. 5. 6. Contrast formal with informal planning?. Under what circumstances do you believe MBO would be most useful? Discuss. How do single use and standing plans differ? How do you formulate strategies?

2.

REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall. 3. Locke, E.A and Latham, G.P.1990. A theory of Goal setting and Task Performance. Eaglewood Cliffs NJ: Prentice Hall. CHAPTER FOUR OVERVIEW ORGANIZING

4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8

DEFINITION OF ORGANIZING IMPORTANT OF ORGANIZATION ORGANIZATIONAL STRUCTURE ORGANIZATION CHART DIVISION OF WORK TYPES OFORGANIZATION STRUCTURE AUTHORITY AND POWER DECENTRALIZATION/ DEPARTMENTALIZATION DELEGATION

Learning objectives: After completing this chapter student will be able to : 1) 2) 3) 4) 5) 6) Explain why organization need to organize Familiarize with organizational structure Explain how to prepare organizational chart Describe different types of organization structure Differentiate between centralization and decentralization of organization. Explain why organization need to practice delegation

4.0 4.1

ORGANIZING Definition :

The formal way for managers to divide work coordinate task, delegate authority and responsibility to achieve organizational objectives. To structure / arrange the relationship between people, the work done and facilities so that goals are achieved.

4.2

Why organizing? Divide work according to nature and similarity of tasks. Pool resources, increase efforts which lead efficiency

4.3 1. 2. 3. 4. 4.4

Build continuity and synergy.

Important of Organizing Important to management system. To create and maintain relationship between all resources, by specifying which resources to be used, when, where and how. Minimize costly weaknesses Accomplish better objectives by using coordinated efforts of people. Organizational Structure : Formal system that separates and integrates tasks : Allocating people and resources to tasks. Clarifying responsibilities through job descriptions, organizations charts and lines authority. Letting employees know what to expect by them establishing rules, regulations operation procedures and performance standards. The chain of command and hierarchy of responsibility, authority and accountability are established through organizational structure.

4.5 1. 2. 3. 4.

Organizational structure can be divide into four elements : Specialization Standardization Coordination Authority a) Specialization : Identifying specialized task, assigning to individuals/ work who are trained. Middle managers will be responsible for directing work, functional and first line usually supervise such as marketing, accounting or quality control. Standardization : Developing the procedures an organization uses to ensure employees perform their tasks in uniform and consistent manner. How? Description, instructions, rules and regulations to standardize subordinates jobs success Application forms will standardize the selection of employees. On the job training programs will promote standardized skills and reinforce values to organizations success. Coordination :

b) -

c)

Formal and informal procedures that integrates both managerial and employees activities.

How? In bureaucratic organization rules and regulations. In less structure- coordination requires knowledge of company wide problems, a willingness to share responsibility and effective interpersonal communication. d) Authority :

Right to make decision and take actions. Various organization distribute authority differently. Centralized organization- top manages make decision, communicate to lower managers. Decentralized organization Greater decision making responsibility is given to lower level managers. 4.6 ORGANIZATION CHART : The way to describe the four elements including the location of positions, departments and function within the organization. Five major information found in the organization chart are: 1. 2. Tasks Indicates the range of tasks within the organization. Subdivision Each box represents a subdivision of the organization that is responsible for a portion of the work. Type of work Label in each box identifies the subdivision area of responsibility. Levels of managementManagement hierarchy, those reporting directly to the same individual are at the same level. Lines of authority Lines connecting the boxes show the official lines of authority and communication. DIVISION OF WORK : Work is being divided among members and different jobs related to each other .This division of work and the grouping together of people is done based on some common characteristics linked between the activities involved. 4.7.1 Importance of division of work : Increase productivity Create specialization- Simplified tasks that are easily understood and completed quickly. Easy to assign tasks to individuals based upon their talents, interest and positions.

3. 4.

5.

4.7

Disadvantages: Sense of control felt by managers will be different. Create dissatisfaction and boredom of routine and specialize tasks.

4.8

Span Of Management: Number of subordinates who report directly to a given manager. Job description detail the responsibilities and tasks associated with a given job.

4.8.1

Factors that influence the span of management Similarity of Functions If similarity of subordinates activities increase, the span of management appropriate for the situation widens. Geographic continuity The closer subordinates are physically, the more of them managers can supervise effectively. Complexity of Function The more difficult and involved the activities are, the more difficult it is to manage a large number of individuals effectively. Coordination The greater the amount of time that must be spend on such coordination, the smaller span of management should be. Planning The more time managers must spend on planning activities, the fewer individuals they can manage effectively.

Types of organization structure: Flat and steep

Flat Flat wide span of authority SteepShort span of authority with many organizations levels.

Advantages

Supervisors are forced to Close supervision and control. delegate clear policies. Rapid communication between Subordinates must willing to subordinates and superior. obey -Tend to be bottleneck bcos of the burden of managing subordinates. -Danger of superiors loss control. -required Good managers needed to handle situations. Superiors too involved with subordinates. Many levels costly excessive distance between the lowest and the highest level.

Disadvantages

4.8.2

FLAT : few organization levels with flat wide span of authority. Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates. Danger of the superiors loss control

4.8.3

STEEP : Short span of authority with many organization levels. Advantages : Close supervision and control Rapid communication between subordinates and superior. Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level.

4.9

AUTHORITY The right to perform a command and make decision with respect to work assignments and to require subordinates to perform assigned tasks in accordance with the decision made. Authority is delegate from top. Each employee and each superior should know Job suppose to accomplish Duties Authority His supervisor Subordinates Levels of performance Authority is a type of power. It is legitimate.

4.9.1 a)

Types of authority Line authority A manager is responsible for the work of his unit and its direct contributions to the objectives of the organization.

b)

Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. DELEGATION: the process of transforming the responsibility for a specific activity or task to another member of the organization. Basic consideration in delegation are: 1. responsibility, authority and accountability. 2. The Scalar principles 3. Unity of command. Superior delegate authority to subordinates in order to facilitate work being accomplished.

4.9

4.9.1

Why delegate? Culture of organization Specific situation involved. Relationship behavior personalities and capabilities of the people in that situation. Guide lines for effective delegation authority. Responsibility- Obligation to perform any assigned duties. Authority - Right to make decisions, carry out actions and direct others in matter related to the duties and goals of a position.

4.9.2

Accountability. - Requirement to provide satisfactory reasons for significant deviation from duties or expected results. The Scalar principle: Members of the organization should know where they stand in the chain of command. Indicate there must be clear line of authority from the highest to the lowest level of organization. A clear line of authority will make it easier for organization members to understand, To whom they can delegate Who can delegate To whom they are accountable Unity of command Each employee should report to only one superior. Enable individual to know to whom they are accountable and whose instruction they must follow.

4.9.3

THE PROCESS OF DELEGATION a) Assigning responsibility Responsible to refers to the employees obligation to complete the activities that he or she has been assigned

b)

Granting authority Authority is the formal right of an employee to marshal resources and make decisions necessary to fulfill work responsibilities. Establishing accountability Where there is accountability for performance, employees understand that they must justify their decisions and actions with regard to the tasks for which they have assumed responsibility

c)

4.9.4

Reasons for failing to delegate: a) Lack of confidence in the abilities of subordinates. b) Managers try to avoid the potential pitfalls of dual accountability. c) Managers may be insecure about their own value to the organization.

4.9.5

BENEFITS OF DELEGATION 1. 2. 3. 4. Leads to amore involved and empowered workforce. Leads to better decision making. Provides opportunity for employee to develop analytical and problem solving skills. Provides managers to opportunity to accomplish more complicated, difficult, or important tasks.

4.9.5

Learning to delegate effectively Principle 1: Match the employee to the task. Principle 2: Be organized and communicate clearly. Principle 3: Transfer authority and accountability with the task. Principle 4 : Choose the level of delegation carefully.

4.10

POWER: Ability to exert influence. A process where managers affect others behavior. 5 types of power: a) b) c) Reward power: Money, acceptance, praise, promotion, status Expert power Influence others through knowledge Referent power Status, money, physical appearance, fame

d) f) 4.12

Coercive power Pain, ridicule, penalty, rejection and denial of rewards. Legitimate power Position- president, supervisor

CENTRALIZATION The responsibility and authority concentrated in one place so that major decision are made by central controlling body. In some situation all managerial decisions have to be approved by the chief executive before operation. Advantages : It provides absolute control over organization. Administration convenient and the focal point for each function. Common standards for all in organization. Disadvantages : Each section may not have standard procedure. More reporting and inspection may be needed than if the control were centralized. Control can be autocratic and inflexible. It will lead to frustration, managers members of staff unable to use discretion but according to inflexible rules. Bureaucratic control methods- Spread of forms and rigid procedures will thus slow down the operations of the organization.

4.13

DECENTRALIZATION : DEPARTMENTALIZATION :It occurs where responsibilities for various functions and operations are taken away from the center and rests at the point where operations occur. Four Types : By function - group of activities by function performed. By product - activities by product produces By territory / geographic activities by territory By customer - activities by common customers. By process - activities by work or customers flow. Advantages Disadvantages Difficult to make decision. Difficult to determine accountability. Does not foster development of general managers. Promote conflict over product practices, difficult to understand responsibility for

By Function

Mainly used by smaller firms that offer limited line of products because it makes efficient use of specialize resources.

Manager is expert in a narrow range of skill. Easier to mobilized special skills. Little coordination and interpersonal skills needed.

overall tasks. By product Functions and activities based on products manufactured by the company. Places attention and focuses effort on product line. Responsibility for profits at the division level. Improves coordination of functions activities. Allows growth and diversity of products and services. Costly. Requires more personnel with the general managers abilities to fill up the division of maintenance of central services becomes difficult when each managers need his own services. Division managers fairly independent, thus difficult for top management to control. More staff required, less control for top management, regional manager are fairly independent.

By territory

Organized around the places Offers better services where operations are located at low cost. Responsible for profits at lower level. Emphasizes on local market and problems. Offer better face to face communication. Grouping of activities to Concentrate on reflect the interest of customers needs. different customers Develops expertise in customer handling

By Customer

Difficult to coordinate operations between competing customer demands. Requires managers and employees expertise in customers problem.

Advantages: 1. 2. 3. 4. 5. Flexibility to meet changes Rewarding to managers and staff because it enables them to exercise their own judgment and initiative. Promote job satisfactions Provides good management experience to managers and supervisors. Promotes personal development and their service becomes of greater value.

ACTIVITY :

1. 2. 3. 4.

Can you identify the four ways to departmentalize? How do authority and power differ? How do centralization and decentralization differ?. How does size affect structure?

REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall. CHAPTER FIVE OVERVIEW : CONTROLLING 1. 2. 3. 4. 5. DEFINITION OF CONTROLLING IMPORTANCEOF CONTROLLING STEPS IN THE CONTROL PROCESS CHARACTERISTIC OF AN EFFECTIVE CONTROL TYPES OF CONTRO

Learning objectives : After completing this chapter student will be able to : 1. 2. 3. 4. Understand the definition of controlling Explain the importance of controlling in organization Describe the steps in control process Describe the types of control practiced

5. Apply the effective control system CONTROLLING 5.0 Definition: The process to assure that actual activities conform to planed activities ( J.F stoner).

5.1

The process of monitoring performance and taking action to ensure desired results.

The Important of Controlling : Assist the management process- PLOC by determine what is necessary, when and why it is required. Deals with the change, or uncertainty. Plans and goals set by organization deals with future which is always uncertain and is constantly changing. E.g market shift, product demand. Deals with complexity- As organization grow in size and diversity, they become complex. Control is needed to coordinate activities and accomplish integration. Deals with human limitation ( mistake) e.g wrong forecasts thus it help tosspot mistake. Ensure delegation and decentralization are operate smoothly. Enable managers to check on performance.

5.2

The control process.: Establish standards and methods for measuring the performance standard. E.g customer waiting time. Measure the performance e.g R & D gas in the air. Its depend on the situation. What , when and how frequently to measure. Determine whether performance matches standards. If the performance match the standard no corrective action is needed. Take corrective action if the performance does not match the standard then corrective actions may be include

5.3

Characteristics Of Effective System: 1. 2. Accurate informationInaccurate will cause organization to make wrong decision.

TimelyInformation must be collected and evaluated quickly to enable managers to solve problems on time. Objective and comprehensiveStandard set must be understandable and measurable. Focused on strategic control points.(Strategic and results oriented)

3.

4. Focus on strategic control points ( strategic and result oriented) 5. FlexibleIndividual judgment and is modified to fit new circumstance as they rise.

6. 5.4

Consistent with the organizations structure(organizational realistic).Control must be exercised at all level of management.

Types Of Control ( Control Methods) 1. Pre action control ( feed forward) Control done at input level of production. To anticipate potential problems and prevent them from occurring .e.g finance, human resource and material resources.

2. Steering control To spot problems as they develop or work process, take corrective actions before final result are achieve. E.g zero inflation campaign. 3. Screening control ( yes or no control) Check points before an activity proceeds further e.g bank procedure approval of large amount of cheque.

4. Post action control After an action is completed. Attempts to measure result of certain action. If there are problem corrective, actions are done and applied to future activities. E.g restaurant will ask how you find your meal after you have taken it. ACTIVITY : 1. 2. 2. Why organization need to focus on controlling? What are the basic relationship between controlling and other functions?. Discuss steps use in controlling? management

REFERENCES : 1. 2. 3. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed 2001, Prentice Hall. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall. Mondy, R. Wayne, Premeaux, Shane R. management Concepts, Practices and skills . 6th edn,1993, Allyn and Bacon.

CHAPTER SIX OVERVIEW HUMAN RESOURCE MANAGEMEN

1. 2. 3.

Definition Human Resource Planning Components Of HRM Recruiting and selection Training and development Performance appraisal and feedback Compensation and benefits Labour relation and / employment legislations

Learning objectives : After completing this chapter student will be able to : 1. 2. Understand how to plan human resource in organization. Describe several components in Human resource Management

MANAGING HUMAN RESOURCE 6.0. Definition: Refers to the individuals within the organization who make valuable contribution to the management system. 6.1 6.1.1 HUMAN RESOURCE PLANNING Step in providing Human Resource 1. 2. 3. 4. 6.2 RECRUITING - The process of finding qualified applications Must begin with the understanding of the position to be filled so the broad range of potential employees can be narrow intelligently. - Techniques used to gain the understanding are: Job analysis Job description Process for collecting information on the important work related aspect of the job Description of the basic tasks, duties and Recruitment Selection Training Performance appraisal

responsibilities of an employee holding a Job specification particular job. Qualification needed perform a particular job. to successfully

JOB ANALYSIS

Job Description - Job title - Location - Job summary - Duties - Machine, tools - Materials and form Used - working condition

Job Specification - Education - Experience - Training - Physical effort - Physical skill - Communication skill

6.3 1. 2. 3. 4. 5. 6.

Major source of Potential Job Candidates Internal search Advertisement Employee Referrals Employment agencies University placement Job fair

SELECTION The process of screening job applicants to ensure that the most appropriate candidates are hired. TYPES OF SELECTION DEVICE a) Application form b) Written test c) Interview

d) Background investigation e) Physical examination TRAINING Is the process of developing qualities in human resource that will enable them to be more productive and thus to contribute more to organizational goal attainable. 2 types of employee training methods: 1. Sample on the job training methods Job Rotation: - Employee work at different job - Provides good exposure to a variety of tasks. Understudy Assignment: - Working with coach/mentor - Provide support and encouragement from experience workers

1. Sample on the job training methods

2.

Sample Off the Job Training Methods Classroom Lectures Films and videos Simulation Exercise Vestibule training - Design to convey specific technical, interpersonal or problem solving solving skills. - To demonstrate technical skills that are not easily to presented by other training methods. - Learning a job by actually performing the work. - May include case analysis, role play, group interaction. - Learning tasks on the same equipment that one actually will use on the job but in a simulated work environment.

PERFORMANCE APPRAISAL - A judgmental process of the job performance of employees. - The process of assessing how well employees are doing their job. - A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well to provide documentation to support those decisions. 6.6.1 Importance Of Performance Appraisal

1. 2. 3.

Provide a systematic judgment to support salary increase, promotion and transfers. Telling subordinates how they are doing and to suggest needed changes in behavior, attitudes, skills, job knowledge etc, Useful basis for the coaching and counseling of individuals by superiors.

6.6.2

Methods Of Performance Appraisal a) Rating skill Use a form containing several employee qualities and characteristics to be evaluated such as leadership, initiative etc. Employee Comparison Rank employees according to job performance, value to organization etc. c) d) Critical- Form Essay Write down particular good or bad performance. 360 Degree Methods that utilizes feedback from supervisor, employees and coworkers.

b)

CHAPTER SEVEN OVERVIEW TOTAL QUALITY MANAGEMENT 1. 2. 3. 4. Definition of quality The differences between Total quality management (TQM) and traditional management. History of TQM A system approach in TQM

Learning objectives : After completing this chapter student will be able to: 1. Understand the difference between TQM and traditional management.

2. 3. 4.

Explain about the history of TQM Familiar with the system approach in TQM. Discuss the main ideas of Total quality management.

QUALITY 7.0 Definition : Performance to the standard expected by the customer( Fred Smith, CEO of Federal Express) Meeting the customers need the first time and every time.(GSA) quality involves meeting or exceeding customer expectations. Quality applies to product, service, people, processes and environments.(Boeing ) An ever changing state.( what is considered as quality today may not good enough to be considered quality tomorrow) 7.1 Total Quality Management (TQM) Integration of application functions and processes within organization in order to achieve continuous improvement of the quality of goods and services. Goal is customer satisfaction.

7.2 Differences between TQM and Traditional management: TOTAL QUALITY MANAGEMENT Customer Focus Quality first TRADITIONAL MANAGEMENT Management focus Profits first

Multiple quality dimensions Management and worker involvement Process oriented

Single quality dimension No worker involve Result oriented

7.3 History of TQM Occurred in Japan after World War II. Japanese industry was completely destroyed and had to be rebuilt from scratch. Number of American went to Japan and helped to built and operate modern manufacturing facilities. Contributors : 1. 2. 3. 4. W. Edward Deming Joseph M. Juran Philip B. Cosby Kooru Ishikawa

W. Edward Deming

Defines quality as predictable degree of uniformity and dependability, at low cost and suited to the market. Quality improves, costs will decrease and productivity increase, resulting more jobs.

Joseph M. Juran

Fitness for use in terms of design conformance, availability, safety and field use. Focuses on top down rather than worker pride and satisfaction.

Philip B. Cosby

Quality is defined as conformance to requirements, not goodness. The system for achieving quality is prevention, not appraisal. The performance is zero defect. The measurement of quality is the price of nonconformance.

Kooru Ishikawa

Contributing to the emergence of quality circle, workers meet to discuss suggestions for improvements. Focusing on the total quality effort on customers. Output of one department should be given to another department.

7.4 THE MAIN IDEAS OF TQM: TQM is a process of continuously improving quality over the long run. There are five main TQM ideas A system approach : Depends on understanding organizations as systems. Parts of the system must work to support each other.

Systems: A series of functions or activities within an organization that work together for the aim of organization. a) Culture system: Referred as social system. ( set of beliefs and resulting behaviors that are shared throughout the organization). b) Technical system: Factors such as technologies in the physical infrastructure include ergonomics consideration, investments. d) Management system: Define the effectiveness of those processes by which an organization manages its human and physical assets. computer software, hardware configuration and capital

7.5

THE

THREE

SYSTEM

IN

ORGANIZATION

The managerial system Managerial diagnosis Managing and checking points Policy deployment

The social system Symbol, rewards, recognition.

Cross functional Management goal setting

The technical system Tools and techniques

The tool of TQM

Kaoru Ishikawa determine a good or bad outcome in Fishbone diagram helps to show possible causes of problems. Benchmarking comparing own products and process against the very best in the world. Internal and external customers define quality and employees produce it. Effort from all levels supervisors to senior executive making TQM success. Know how to pass on authority and responsibility to the people they work and put extra effort to cooperate with other departments. Empowerment. Letting employees make decision at all levels of an organization without asking for approval from managers.

A focus on customers The role of management

Employee participation

ACTIVITY :

1. 2. 2.

What differ between traditional management and Total Quality Management?. What are the main ideas of TQM? Discuss the system approach in quality management?.

REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall. 3. Berry, T.H.1991. Managing the Total Quality Transformation. New York: McGraw Hill. CHAPTER EIGHT OVERVIEW DECISION MAKING 7.0 7.1 7.2 7.3 7.4 Definition of Decision Making Types of decision making Steps in decision making process States of nature types and decision Condition that affect decision making

Learning objectives : After completing this chapter, student will be able to: 1. 2. 3. 4. 5. Explain what is decision making Explain types of decision making Apply all steps in decision making Familiarize types of state of nature in decision making. Know the condition that affect decision making

DECISION MAKING

8.0

DEFINITION Process where a course is selected as the way to deal with a specific problem. Selection of one alternative from two or more alternative.

8.1

THE NATURE OF MANAGERIAL DECISION MAKING Decision making is one of the vital tasks of a manager e.g in planning, organizing, controlling. Decision making is a process which affects all the managers operating functions. The key to successful decision making depends on the proper formulation of the specific problem at hand.

8.2

Types of decision making : 1. Programmed decisions 2. Non- program decision PROGRAMMED DECISIONS It is a repetitive decision that can be handle by a routine approach. It is usually made in accordance with some established habit, rule or procedure (STONER). Grievances procedures for employees are an example of programmed decisions. NON- PROGRAMMED DECISION This is a type of decision that deals with a unique, unusual or exceptional problems. The nature of the problem that occurs is unstructured and something different. Eng is the selection and training of personnel. e.g Nature of problems an decision making in organization Un structured Organizational hierarchy structured lowest level Non- programmed

Highest level

organizational levels

nature of problem

programmed nature of decision making

Programmed decisions

Non programmed decision

A repetitive decision that can be handle by routine approach. Well structured situations using predetermine decision rules, related rules and policies. E.g grievances procedures for employees.

Unstructured, unique, unusual or exceptional problem, requires a higher level management participation. E.g J.E. Virus out break.

8.3 DECISION MAKING CONDITIONS There are three different conditions under which decision are made. Each of those conditions is based on degree to which the future outcome of a decision alternative is predictable. These condition are: 1. 2. 3. Certainty Risk Uncertainty

CERTAINTY: The decision maker knows the out-come of the problems. Individual are fully informed in terms of : RISK Future condition are unknown in advanced. Some information are available but not enough to answer all questions and normally most of the management decisions are made under this condition. Occurs in the situation in which an individual can define as : Nature problems Possible alternatives UNCERTAINTY Individual cannot even assign subjective probabilities to possible state of nature because the individual do have the information or intuitive judgment to use as basis for assigning the probabilities to each state of nature. 8.4 STEPS IN DECISION MAKING The understanding of the steps will enhance and improve the analytical and decision making process. Steps 1 The nature of the problems Possible alternatives Result of alternatives

Investigate the situation. Define the problem Diagnose the causes Identify decision objectives

Step 2 Generate alternative solutions. Consider as many alternatives as possible Step 3 Evaluate and choose among alternative solutions Once the possible solutions are developed, the decision maker has to examine the probable desirable and undesirable consequences of each alternative. Step 4 Implement and monitor the chosen solution Design the implementation for the chosen situation. Decision makers responsible for reviewing the plan periodically and comparing the actual performance with the planned solutions. 8.5 State Of Nature Types And Decisions Routine Decisions Certainty Objective probabilities Adaptive decision Innovative decision Uncertainty Subjective probabilities

RISK CONTINUUM

Routine : Choices made in response to relatively well known problems. Solution obtained from standard rules, operating procedures and computer programs. Adaptive: Combination of moderately. Unusual and partially known problems and alternative solutions that are modifications of other known and well define solutions. Innovative: Involve combining the discovery, identification and diagnosis of unusual and ambiguous problems with the unique. Novel and creative alternative solutions. Represents a series of mini decisions made over a period of months or several years. Represents an individual decision, involve many people, many and various time.

Differences: ROUTINE

Do not unfold in a logical, orderly sequence. Made in the midst of a lot other managerial tasks.

ADAPTIVE

INNOVATIVE of High levels of risks and certainty.

Made under conditions of Moderate levels certainty, low level risk uncertainty and risk.

8.6 CONDITION THAT AFFECT DECISION MAKING States of nature: Condition, situations and events that managers cannot control, but influence their decisions. e.g new technologies, entrance of new competitors into market, new laws and political instability. Certainty: Managers are fully informed of the problem, alternative solutions that will lead to desired result, probability that certain states of the nature will occur. Objectives probability: The likelihood that the state of nature will occur, based on hard facts and figures. Rational decision and non- rational decision model: Rational Make optimal decision, possessing and understanding all information relevant to their decisions at the time they are made. Non-rational model Information gathering and processing limitations make it difficult for managers to make optimal decisions. Rational decision : Permits maximum achievement of an objective within limitations of environment in which decisions are made. It merges the rationality of the decision maker and the decision into sequence of basic steps: 1. Problem awareness and diagnosis. It include noticing, interpreting and incorporation Interpreting Managers Assess the forces they have notice determine what is causing it Incorporation Managers Relate their interpretation to the current or desired state of their department/ organization to the future problems.

Noticing Managers Monitor environmental forces and decide which are problems

2. 3. 4 5. 6.

Set objectives What to be achieve and by what date. Search for alternative solutions Seeking additional information, thinking creative, consulting experts, undertaking. Compare and evaluate alternative solutions. Emphasizes expected results, including relative cost of each alternatives. Choose among alternative solution. Final choice Implement the solution selected.

ACTIVITY : 1. 2. 3. Discuss two types of decision making?. What are the condition that affect the decision making?. Explain the step use in decision making?.

REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall.

CHAPTER NINE OVERVIEW

LEADERSHIP 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 DEFINITION OF LEADERSHIP IMPORTANCE OF LEADERSHIP IN ORGANIZATION TRAIT THEORIES OF LEADERSHIP BEHAVIORAL THEORIES OF LEADERSHIP LEADERSHIP FUNCTIONS LEADERSHIP STYLES MANAGERIAL GRID (Leadership grid) CONTINGENCY APPROACH/ MANAGERIAL STYLE. PATH GOAL THEORY SITUATIONAL FACTORS INFLUENCING

Learning objectives : After completing this chapter, student will be able to: 1. 2. 3. 4. 5. Define what is leadership Explain the importance of leadership in organization Recognize several theories of leadership . Identify several leadership styles practice in organization. Familiarize with factors that influence managerial style.

LEADERSHIP 9.0 Definition :

Process of directing and influencing the tasks related activities of group members to achieve goals. ( stoner, J.A.F, management, Prentice Hall, New Jersey, 6th edition) The process of directing human resource efforts toward organizational objectives ( Schermerhorn, John, R ., Management for productivity, John Wiley and Sons,2nd edn) Four important facts are: 1) 2) Involves people- employer and employees. Involve unequal distribution of power between leaders and group members

3)

Involves the ability to use the different forms of power to influence, reward, referent, expert power and legitimate power or authority.

4) About values Moral, obligation and responsibilities towards employees. 9.1 1) 2) 3) 4) Importance to organization Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work.

9.2 Trait theories of Leadership: The average persons definition of leadership are : Evaluation and selection of leaders are based on their physical, mental and psychological characteristics. Qualities such as intelligence, charisma, decisiveness, enthusiasm, strength, bravery, integrity and self confidence. Leaders have certain inborn personality or leaders are born with certain characteristic.

Set of Traits that differentiate leaders: Traits of leaders and non- leaders Traits of effective leaders and noneffective leaders. Physical appearance, charisma,, mental Intelligence, self assurance and managerial ability, behavior/attitude, personality supervisory ability. factors. RESULT Traits of leaders and non- leaders Cannot point out the differences between of leader and followers, Traits can be gained leaders through learning process Traits of Effective leaders and nonEffective leaders Does not depend upon particular set traits. It depends on how well the traits match the requirement of the situation that / she is in.

The traits theory failed to isolate prominent traits to distinguish between leaders and nonleaders.

9.3 BEHAVIORAL THEORIES OF LEADERSHIP This theory is believe that people can learn the characteristic of a leader or people can be train to be a leader. Two aspects of leadership behavior : Leadership function Leadership styles 9.4 LEADERSHIP FUNCTION: Leader considered to be effective when practices these functions: a. b. Task related/ problem solving function. E.g suggesting solutions, offering information, opinion, counseling.

Group maintenance/ social function. Help the group to operate smoothly. E.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinates feeling. An effective leader must performs both functions simultaneously. 9.5 LEADERSHIP STYLES : Generate into two different leadership styles : 1. 2. Task oriented function/ production centered. Concern on getting the job done to her / his satisfaction rather than develop or employee growth. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. Concerned to get the job done rather than the development of the employees. Employee oriented/ people centered. Managers try motivate rather than control the employees. Encourage to participate in decision making. Develop trust and respect . Show high amount of consideration towards employees ideas and feelings. Characteristic of Manager: Warmth and has special rapport with subordinates. Respect the feeling of others Sensitive to others needs and mutual trust.

9.6

MANAGERIAL GRID ( leadership grid) Developed by Robert Blake and Jane Mouton. It concern for both employee- oriented and task oriented styles of leadership to be practiced simultaneously.

The Managerial Grid High ( 1.9) Concern For people

(9.9)

5.5

(1.1) Concern for production Managerial grid identifies five leadership behaviors :1.1 1.9 5.5 9.1 Impoverished management Country club management Middle of the road Autocratic/ authoritarian/ management

(9.1)

Little concern for either people or productionLaissez- fair Full attention to peoples need but low concern for production. Moderate concern for people and production Task High concern for production and low concern for people. Leaders want work schedule to be followed at all costs. ( Autocratic)

9.9

Team/ High concern for people and production participation/democratic/supportive relationships. Work accomplishment. Managers management. concern for feeling and interests of the group members. ( Democratic)

9.7

CONTINGENCY APPROACH/ SITUATIONAL APPROACH Focuses on situational factors influencing managerial style. It tries to identify : Find out whether there is any leadership style appropriate in particular situation. Identify which style is most important at any circumstances. Predict leadership style that will be most effective.

Result from theory: No one leadership style appropriate in all situations. Leadership behavior depends on situation such as leader- member relationship, task structure, position power, employees characteristic, experience, expectation, organization culture and policies.

Two leadership models developed: 1) 2) 9.7.1 Path goal model Life- cycle or situational approach.

PATH GOAL THEORY Life Cycle theory or situational approach ( by Paul Hersey and Kenneth Blancard)

Path goal Model By Robert J. House Leader : -

Leader : Make valued or desired Must change style of leadership rewards. according to level of maturity of employees Clarify to employees the and demands of situation. kind of behavior Behavior will contribute to employees satisfaction. Increase goal attainment Clearly defines job requirements, provide training, assist employees. Source for rewards. E.g leaders give directive, supportive, participative and achievement oriented. Employees attributes ability, open minded, self control and experience. Path goal theory will enable managers to influence their subordinates by : a) b) Activating subordinates needs for rewards over which the leader has control e.g A leader explaining to employee how they can qualify for overtime pay. Increasing rewards to employees who achieve goals, e.g Recognition and praises.

c) e) 9.7.2

Making the path to rewards easier through coaching and direction. E.g training, helping them to reaching goals. Reducing frustration barriers to reach goals. E.g leader replace new equipment. LIFE CYCLE OR SITUATONAL APPROACH

Developed by Hersey and Kenneth Blanchard. This theory says that a leader should change his style of leadership according to the level of maturity of his employee and the demands of situation of the situation. Life cycle Theory high Phase 3 High R/ship Low Tasks Phase 4 Low Tasks Low R/ ship Low Low Task Behavior Maturity High Moderate Immature Low Phase 2 High Task High R/Ship Phase 1 High Task Low R/ ship High

The diagram shows the relationship between : 1. 2. 3. Amount of task behavior that the leader shows ( horizontal axis) ( e.g providing direction, guidelines, controlling and monitoring) The amount of relationship behavior the leader provides ( Vertical axis) ( e.g providing consideration and level of emotional support) The level of task maturity the followers ( employees) show towards achieving specific goals ( tasks or functions) that the leader wants accomplished. 1. 2. 3. A desire for achievement. The willingness and ability to accept responsibility The education/ experience and skills relevant to particular tasks.

Maturity means :

Explanation : 1. Phase 1 ( HT/LR)- Telling Leader use one way communication. Defines the goals and roles of employees and tell what, how and where to do task. Employee lack of task relevant maturity. E.g employee relatively new and in experiences. 2. Phase 2 (HT/HR) Selling Employee are learning to do the job. High task relationship is needed because employee lack of experience and skills. Managers provide high level of emotional support and encouragement to develop trust and confidence . 3. Phase 3 (HR/LT)- Participating Employee show maturity in performing tasks. More experience and skilled as well as achievement oriented. Being motivated to assume more responsibility. Managers reduces the need for task relationship and continues to give emotional support and consideration to increase employees level of responsibilities. 4. Phase 4 (LR/LT) Delegating Highest level of employee maturity, possess a high level of task maturity. They are skilled and experienced and motivated to assume more responsibility. They are self directed and are able to exercise self control. They no longer need high level of supportive or task behavior from their leaders/ managers. ACTIVITY 1. 2. 3. Discuss the relationship between leadership and management? If you a boss in any organization, what leadership style you may practice? In what way leader can increase productivity?. :

REFERENCES

1. Robert Blake and Jane S. Mouton, The managerial grid III,1985 Houston : Gulf Publishing. 2. Robbins, Stephen P, Management 6th edn 2001, Prentice Hall. 3. Mondy, R. Wayne, Premeaux, Shane R. Management Concepts, Practices and Skills, 6th edn 1993, Allyu and Bacon.

CHAPTER TEN OVERVIEW MOTIVATION: 1. DEFINITION 2. MOTIVATION PROCESS 3. EARLY VIEWS OF MOTIVATION 4. CONTEMPORARY THEORIES OF MOTIVATION Hierarchy of needs Theory X and theory Y Life cycle theory or Situational approach Two factors theory Learning objectives : After completing this chapter, you should be able to : 1. 2. 10.0 Explain the concepts of motivation and its significance in the managerial process. Understand and apply contemporary theories of motivation. DEFINITION : The willingness to put forth effort in pursuit of organizational goals. ( R Wayne Mondy, Management, 4th edition) tangible higher pay, bonus and benefits Intangible reputation, respect, recognition or achievement.

Concerned with why people act or do or why they refrain from doing things they do not want to do. Needs ( unfulfilled) Tension Drive Search behavior

Reduction tension

Satisfied Needs ( Needs fulfilled)

10.1

Motivation process. Efforts are forces to perform- Individual, manager, employees. People need organization to achieve goals and organization needs people to achieve its goals. This lead to effective and efficient organization. Good motivation practices will help leaders and managers: 1. 2. 3. Be sensitive to the differences in needs and values. Increase your employees expectations that their efforts lead to effective performance. Increase your employee expectation that their efforts will lead to effective performance. Encourage your subordinates to set performance goals that are specific, challenging and attainable.

10.2

EARLY VIEWS OF MOTIVATION There are three early views of motivation. They are :1. 2. 3. The traditional model, associated with Frederick W. Taylor and Scientific Management. The Human Relation Model, which related to Elton Mayo and Hawthorne studies. The Human Resources Model, Associated with Doughlas Mc Gregors X and Theory Y. Traditional Model Assumes Human Relation Model 1) Work is 1)People want to inherently feel useful. distasteful to most people. 2) Need to belong 2) What people do to a group, is less important organization to be rather than what recognized. they learn for doing it. 3) Few people want to work to involve in work that requires creativity, self direction or self control. 1.Manager should 1.Manager should closely supervise make each worker and control feel useful subordinates. Theory

Human Resources Model 1.People want to contribute to meaningful goals. 2. Most people exercise more creativity, self direction and self control than their present job demand.

Management policies

1.Manager make use of under utilized human resources.

2.Manager must break down task into simple, repetitive, easily learned operations. 3. Must establish detailed work routine and procedures General expectations 1.People can tolerate work if pay is decent and boss is fair. 2. If tasks are simple, people are closely controlled they will produce work that is up to standard.

2.Should keep 2.Create environment subordinates where members can informed and contribute. listen to their objectives. 3. encourage full participation. 3. Allow subordinates to exercise self control and self direction on routine matters. 1. Sharing 1.Expanding information with subordinates influence subordinate and self direction and self involving them in control will lead to routine decisions direct improvement. will satisfy their 2. Work satisfaction basic needs to may improve as a by belong and to feel product of important. subordinates making full use of their resources.

5. CONTEMPORARY THEORIES OF MOTIVATION a) b) c) A) Need theory or Content theory Process theory Reinforcement theory NEED THEORY OR CONTENT THEORY People need or require to live fulfilling lives, particularly with regard to work. A person will be motivated when she or he has not yet attained satisfaction with their life. Need vary among individuals. This is because people are different in nature. ( Hierarchy of needs) B) PROCESS THEORY Process where individuals give meaning to rewards that will allow them to influence their behavior or process theory explain how individuals are motivated or the steps that occur when individuals are motivated. ( Herzberg two factors theory/ hygiene theory) C) REINFORCEMENT THEORY Describes how people learn patterns of behavior based on environmental reinforcements. This means behavior with positive consequences tends to be repeated, vise versa.( Theory X and Y.)

10.3

HIERARCHY OF NEEDS Introduced by Abraham Maslow. He states that all people possessed a set of five needs in them. These needs are arrange in a hierarchical order . They are the lower order needs and the higher order needs.

Self- actualization needs

higher order

Self-esteem needs Social needs Safety needs Physiological needs lower Order needs

1.

Physiological needs These need are our basic needs. These are for our survival. E.g food, water, and shelter from environment

2.

Safety or security needs Deals with our physical and psychological safety from external threats. Examples are job security, freedom from coercion and a need for clearly defined regulations. Social needs or Belongingness Need for companionship, or need for personal belongingness. E.g are love, need to love somebody as well as the need for social interaction. Self esteem needs It is also known as growth need. It is a need for self-esteem and self growth. E.g are respect from others, opportunities for advancement, recognition, achievement as well as prestige and status. Self Actualization needs It comprises needs for the development of ones full potential or the realization of ones own potential.

3.

4.

5.

10.4

TWO FACTOR THEORY / FREDERICK HERZBERGS MOTIVATION Introduced by Frederick Herzberg by studying the job attitudes of 200 engineers and accountants . From the study, it was concluded that individuals work satisfaction and dissatisfaction arise from two different sets of factors. The factors are: a) HYGIENE FACTORS Also known as dissatisfier factor. It associated with the work setting of an individual. Often called as job content. It causes feeling of job dissatisfaction. b) SATISFIER FACTOR Also known as motivating factor. It associated with job context, Satisfier factor is related to the job content of individuals. Satisfier causes feelings of satisfaction. Source of job satisfaction and job Dissatisfaction Factors that led to extreme job Factors That Led to extreme job dissatisfaction satisfaction -Company policy and administration Achievement - Supervision Recognition -Relationship with supervisors/ boss Work itself -Working condition Responsibility -Relation with peers Advancement -Relation with workers growth -Status -Security How you apply this theory? Both hygiene and satisfier factors are two separate entities. The absence of one does not affect the other. Hygiene factor only affects job dissatisfaction. Improving them, such as changing the rule, policy on dress code in the work place can make people less dissatisfied but does not contribute to job satisfaction or motivate the employees to increase their work effort. The factors that will contribute to employees satisfaction will be the satisfaction factor. Therefore, the managerial implications associated with the two factor theory are: 1. Improvements made in the hygiene factors can prevent or eliminate job dissatisfaction. However, they will not improve job satisfaction. 2. Improvements made in the satisfier factors can increase job satisfaction. However they will not prevent job dissatisfaction. To motivate, managers need to turn their attention away from hygiene factors and focus on improving satisfier factors.

10.5 THEORY X AND THEORY Y This theory was developed by Douglas Mc Gregor. This theory describes the views or perception of managers with regard to their employees. Managers of theory X view the employees in terms of the following characteristics: 1. 2. 3. 4. 5. 6. 7. 8. Inherently disliking work Avoiding work whenever possible Lacking in ambition Irresponsible Resistant to change Feeling that work is of secondary importance Preferring to be led than lead. Having to be pushed by managers to work.

Here managers have a traditional or a pessimistic view of motivation with regard to employees. These managers in order to make sure that their employees do their work, have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. Coercive power will be used. Theory Y managers, view their employees in terms of the following characteristics: 1. Willing to work; work is as natural as play or rest. 2. Willing to accept responsibility, since work brings satisfaction. 3. Capable of directing themselves ( self direction) 4. Capable of self control 5. Frequently using imagination, ingenuity and creativity in accomplishing tasks. Theory T is optimistic view. To ensure high performance, managers need only to apply the participative style of leadership, where employees are allowed more participation, freedom and responsibility in their work. Theory Y manager will delegate the authority and allow employees to participate in decision making. Greater job autonomy and taskvariety is offered to employees. ACTIVITY 1. 2. Discuss how Herzberg two factors theory help in motivating employees? If you a manager, What can you do to motivate your staf?.

REFERENCES : 1. 2. 3. 4. Petri, H.L. (1990), Motivation, Theory, Research and Application 3rd edn, Belmont,C.A: Wadsworth Publishing. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice Hall, New Jersey,1993. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley and Sons. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr.,Management, 6th edn, Prentice Hall, 1995

CHAPTER ELEVEN OVERVIEW INFLUENCING - COMMUNICATION 1. 2. 3. 4. 5. 6. DEFINITION OF COMMUNICATION IMPORTANCE OF EFFECTIVE COMMUNICATION THE COMMUNICATION PROCESS CHANNELS OF COMMUNICATION BARRIERS TO EFFECTIVE LISTENING OVERCOMING BARRIERS

Learning Objectives : After completing this chapter, student will be able to : 1. 2. 3. 4. 5. Define what is communication Understand the importance of effective communication. Explain the communication process Explain different channels of communication. Overcoming barriers to effective communication.

COMMUNICATION 11.0 DEFINITIONS : Websters dictionary the information. OR arts of expressing ideas. The science of transmitting

Oxford English dictionary Imparting, conveying or exchange of ideas, knowledge etc.. by speech, writing or sign, bringing in with exchange. OR The process by which people seek to share meaning via the transmission of symbolic messages. In organization Disseminating of information through memos, letters, reports and newsletters. Discuss face to face meeting. Organizational communication. Process of sending and receiving messages among individuals and groups called interpersonal communication.

11.1

IMPORTANCE OF EFFECTIVE COMMUNICATION Convey information Giving instruction/ commanding action Persuading or influencing change 1. 2. 3. 4. 5. Management function- PLOC requires effective communication. Everyone in the organization need to be informed of the objectives and goals of the organization. Assist managers coordinating and integrating the work groups. Employees need information to conduct tasks. In leading and motivating managers need to inform employees of doing the right tasks, allocating and correcting mistakes.

Managers is considered effective in his instruction when employees acts according to instructions. 11.2 Types of communication Interpersonal Communication Between two or more people Organizational communication All the patterns, networks and system of communication within an organization. COMMUNICATION PROCESS Classic model of communication developed by Shannon based on fine question- who says what---- in what way -----to whom----with what effect. Noise Sender encording message Medium Noise decording Noise Receiver

11.3

Feedback

Sender Encoding Medium Message

: : : :

Person with information to communicate Ways in which the information is expressed. E.g spoken English . From in which the message is. The telephone The information itself as encoded by the sender. E.g Im looking for a place on PR course.

Decoding Receiver Feedback Noise

: : : :

Interpretation- The receivers thought process on getting The message. Person who receive the information. E.g switch board Operator. The element of the receivers response which the receiver communicates to the sender. E.g that course is full. Any kind of interference which results in distortion. So that the receiver gets a different message from the one that was sent e.g incomplete information.

11.4

TYPES OF INTERPERSONAL COMMUNICATION Verbal Non Verbal - Communication transmitted with words - Communication transmitted without words

11.5

FORMAL ORGANIZATIONAL COMMUNICATION Information flows around organization whether or not they try to control it. a) Vertical communication: Comm. system in which messages / info move upwork and downward. Downward- In the form of instruction and information e.g policies, procedures, rules, work schedules. Upward through suggestion schemes or some other form of feedback to management. Convey info to their superior. eg. reporting work progress, suggest ideas, suggestion box. b) Lateral communication Known as Horizontal communication. Information flow at the same level.

\ 11.5.1 INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal. Information can be accurate/ inaccurate

Four types of chains show how individuals convey information. Single strand Z D C B B A 11.6 A LEVEL OF COMMUNICATION 1. 2. 3. Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. Group communication Relates to the interaction of people in a small groups, usually in decision making setting. Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication. Mass Communication Deals with public communication . Received by or used by large number of people ( postal service, internet etc) Gossip probability M S A C A N B X D F Cluster J I

L DE F G H T I K J

4.

5.

11.7

ORGANIZATION INVEST IN COMMUNICATION FOR SOUND BUSINESS REASON. 1. 2. 3. 4. 5. 6. 7. 8. Effective employee performance Manageability Sharp- end feedback Motivation Team spirit Crisis preparation Participative staff Good relation with its public

11.8

Improving The Comunication Process VERBAL COMMUNICATION Spoken words, writing letters, memo, newsletter, bulletin boards, letters, mail, fax. NON-VERBAL COMMUNICATION Means of gestures and to express feelings and emotions. Face expression and movement, voice tone, posture, hand gesture, body placement, clothing, dress and appearance It is in form record and evidence. Info Obtain feedback, learn to relax when well kept, easy to retrieved. communicate, use facial, hand and body Verbal face to face, speed up gesture to supplement speech, avoid exchanging ideas and get direct using the same non verbal, use role feedback. playing, use mirroring to establish rapport.

11.9

Barriers to effective listening 1. Poor listening Happen when employees are not allowed to participate in the decision making process and are not given a detailed explanation of rules and procedures to be implemented. It can be very responsive to the change and they may refuse to listen. Semantic Certain words may be interpreted differently by different people. Filtering Alteration of information to make it interesting, positive and acceptable to the receiver. Credibility of the sender Associated with persons feeling of love, anger, hate, jealousy, fear, defensive, embarrassment and enthusiasm. Factor interferes, confuse or disturb the messages from reaching the receiver. 6. Filtering The deliberate manipulation of information to make it appear more favorable to the receiver. 7. 8. Selective perception When people selectively interpret what they see or hear on the basis of their interest, background, experience and attitudes. Emotion How a receiver feels when a message is received influences they interprets it, Often interpret the same message differently depending on whether youre happy or distressed.

2. 3.

4.

5. Noise

9.

Information Overload The information we have to work with exceeds our processing capacity. They tend to select out, ignore pass over or forget information. Defensiveness Respond in ways to hide an effective communication when people feel that theyre being threatened Language Words means different things to different people, age, education and cultural back ground are the most variable that influence the language of a person.. Jargon specialized terminology or technical language.

10.

11.

12. National culture Cultural differences can affect the way a manager chooses to communicate US tend to be individual rely on memoranda, announcement and other formal forms of communication. Japan more interact to their subordinates and used a more informal manner. Use verbal consultation over on issues and draws up formal document to outline the agreement that was made. 13. Credibility of a sender How trustworthy the sender or the source of the message. If the sender is known to be trustworthy , the information will get to receiver clearly. Where else, if the sender has low credibility the receiver may ignore the information.

11.10OVERCOMING COMMUNICATION BARRIERS 1. 2. 3. 4. 5. 6. 7. Obtain feedback Ask question, repeat message, visit site. Use simple language Technical terms must be clearly explained Recognized emotions Empathy Do not make own conclusion Listen to all issues carefully Avoid noise Identify it cause or sources. Understand verbal and non- verbal communication Facial expression, clothes, postures and gestures. Create openness, rational and trust Instill an atmosphere of openness. Send message in an effective way

8.

abcd9.

Plan and clarify ideas before communicating Be specific Use bias free language Modify language and use words appropriate.

Listen actively Listen for full meaning without premature judgment or interpretation, Listening is an active search of meaning Listening is more tiring than talking Be specific in giving orders Managers must precise and clear when giving directive. Use bias free language The receiver of messages can have a bias feeling when a biased term is used in the messages.

10. 11.

12. Modify language and use word appropriately We have to study audiences and their background, education level and position. ACTIVITY : 1. 2. 3. For what reason organization invest in communication?. Explain the important of the two communication channels in organization?. Effective communication importance to organization, Discuss how organization overcome ineffective communication process.

REFERENCES : 1. 2. 3. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice Hall, New Jersey,1993. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley and Sons. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr., Management, 6th edn, Prentice Hall, 1995.