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PUSAT PENDIDIKAN BERTERUSAN UNIVERSITI MALAYAPUSAT PENDIDIKAN BERTERUSAN UNIVERSITI MALAYAUNIVERSITY OF MALAYA CENTRE FOR CONTINUING EDUCATIONUNIVERSITY OF MALAYA CENTRE FOR CONTINUING EDUCATION

Principles & Practice of ManagementPrinciples & Practice of Management

Lecturer:Lecturer: Fakir Mohamed Omar Fakir Mohamed Omar Din.Din.

MBA(UKM)BBA (HONS)UKM DBS(UITM)SP(IPT) MIM.MBA(UKM)BBA (HONS)UKM DBS(UITM)SP(IPT) MIM.

Contact No.:Contact No.: 012-3534550012-3534550

Email:Email: [email protected]@hotmail.com

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ARE YOUARE YOU A A

MANAGER???MANAGER???

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MANAGER vs MANAGEMENT?MANAGER vs MANAGEMENT?

Basically a manager is a decision maker Basically a manager is a decision maker ((a person who makes decisionsa person who makes decisions))

The word ‘management’ originated The word ‘management’ originated

from 2 (two) sourcesfrom 2 (two) sources

“menege” “manu agere”

French connection Latin connection

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WHY STUDY WHY STUDY MANAGEMENT?MANAGEMENT?

For two very important reasons For two very important reasons (Donnelly)(Donnelly) 1. 1. First, the modern society today depends on First, the modern society today depends on

specialized institutions and organizations specialized institutions and organizations to to provide the goods and services that we provide the goods and services that we desire desire daily. These organizations are daily. These organizations are guided and guided and directed by the decisions of directed by the decisions of

one or more one or more individuals called ‘managers’.individuals called ‘managers’. 2. 2. Second, individuals who are not trained as Second, individuals who are not trained as

managers often find themselves in managers often find themselves in managerial managerial positions positions

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Why Study Management?Why Study Management? The Value of Studying ManagementThe Value of Studying Management

– The universality of managementThe universality of management Good management is needed in all Good management is needed in all

organizations.organizations.

– The reality of workThe reality of work Employees either manage or are managed.Employees either manage or are managed.

– Rewards and challenges of being a Rewards and challenges of being a managermanager Management offers challenging, exciting Management offers challenging, exciting

and creative opportunities for meaningful and creative opportunities for meaningful and fulfilling work.and fulfilling work.

Successful managers receive significant Successful managers receive significant monetary rewards for their efforts.monetary rewards for their efforts.

Importance of ManagementImportance of ManagementAccording to Tripathi (1991), management as According to Tripathi (1991), management as

a discipline of study is important for the a discipline of study is important for the following reasons:-following reasons:-

Management is a critical element in the Management is a critical element in the economic growth of the country.economic growth of the country.

Management is essential in all organized Management is essential in all organized effort, be it business or otherwise.effort, be it business or otherwise.

Management is the dynamic, life giving Management is the dynamic, life giving element in every organization.element in every organization.

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Definition Of ManagementDefinition Of Management

Mary Parker FolletMary Parker Follet::

Management is the “…….art of Management is the “…….art of getting thingsgetting things done through other done through other people…..” people…..”

A manager is one who contributes to A manager is one who contributes to the achievement of the organization’s the achievement of the organization’s goals indirectly by directing the goals indirectly by directing the efforts of others and not by efforts of others and not by performing the task himself performing the task himself

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Critics to MPF definitionCritics to MPF definition

It uses the word “art” in defining It uses the word “art” in defining management management

This definition does not discuss anything This definition does not discuss anything on the various functions of the manager.on the various functions of the manager.

Management = Science + ArtManagement = Science + Art Management = Social Science.Management = Social Science.

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George R. Terry (1953).George R. Terry (1953). Management as a process “consisting Management as a process “consisting

of planning, organizing, actuating and of planning, organizing, actuating and controlling, performed to determine controlling, performed to determine and accomplish the objectives by the and accomplish the objectives by the use of people and resources” use of people and resources”

According to this definition, According to this definition, management is seen as a management is seen as a processprocess - a - a systematic way of doing things.systematic way of doing things.

The four management activities The four management activities included in this definition are: included in this definition are: planning, organizing, actuating and planning, organizing, actuating and control control

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Donnelly (1987)Donnelly (1987)

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

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According to Hellriegal & According to Hellriegal & Slocum (1992)Slocum (1992)

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

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The term ‘manager’ covers The term ‘manager’ covers many types of peoplemany types of people

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

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Who Are Managers?Who Are Managers?

ManagerManager– Someone who works with and through other Someone who works with and through other

people by coordinating and integrating their people by coordinating and integrating their work activities in order to accomplish work activities in order to accomplish organizational goals.organizational goals.

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Classifying ManagersClassifying Managers

First-line ManagersFirst-line Managers– Are at the lowest level of management and Are at the lowest level of management and

manage the work of non-managerial manage the work of non-managerial employees.employees.

Middle ManagersMiddle Managers– Manage the work of first-line managers.Manage the work of first-line managers.

Top ManagersTop Managers– Are responsible for making organization-wide Are responsible for making organization-wide

decisions and establishing plans and goals decisions and establishing plans and goals that affect the entire organization.that affect the entire organization.

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Exhibit 1.1Exhibit 1.1

Managerial LevelsManagerial Levels

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What Is Management?What Is Management?

Managerial Managerial ConcernsConcerns– EfficiencyEfficiency

““Doing things right”Doing things right”– Getting the most Getting the most

output for the least output for the least inputsinputs

Involves the cost Involves the cost (means) element(means) element

– EffectivenessEffectiveness ““Doing the right things”Doing the right things”

– Attaining organizational Attaining organizational goalsgoals

– More inclined towards More inclined towards the end resultthe end result

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Effectiveness and Efficiency in Effectiveness and Efficiency in ManagementManagement

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Managerial FunctionsManagerial Functions

ManagementManagement == Function(POLC)Function(POLC)

OROR

MM == f (P.O.L.C.)f (P.O.L.C.)

WherebyWhereby…..….. PP = = PlanningPlanning

OO == OrganizingOrganizing

LL == Leading Leading CC == ControlControl

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The Managerial ProcessThe Managerial Process

Planning Organizing Leading Control

Feedback

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What Do Managers Do?What Do Managers Do? Functional ApproachFunctional Approach

– PlanningPlanning Defining goals, establishing strategies to achieve Defining goals, establishing strategies to achieve

goals, developing plans to integrate and goals, developing plans to integrate and coordinate activities.coordinate activities.

– OrganizingOrganizing Arranging work to accomplish organizational Arranging work to accomplish organizational

goals.goals.

– LeadingLeading Working with and through people to accomplish Working with and through people to accomplish

goals.goals.

– ControllingControlling Monitoring, comparing, and correcting the work.Monitoring, comparing, and correcting the work.

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What Do Managers Do? What Do Managers Do? (cont’d)(cont’d)

Management Roles Management Roles ApproachApproach

(Henry Mintzberg…..10 roles in 3 (Henry Mintzberg…..10 roles in 3 categories)categories)

– Interpersonal rolesInterpersonal roles Figurehead, leader, liaisonFigurehead, leader, liaison

– Informational rolesInformational roles Monitor, disseminator, Monitor, disseminator,

spokespersonspokesperson

– Decisional rolesDecisional roles Disturbance handler, Disturbance handler,

resource allocator, resource allocator, negotiatornegotiator

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What Do Managers Do? What Do Managers Do? (cont’d)(cont’d)

Skills ApproachSkills Approach– Technical skillsTechnical skills

Knowledge and proficiency in a specific fieldKnowledge and proficiency in a specific field

– Human skillsHuman skills The ability to work well with other peopleThe ability to work well with other people

– Conceptual skillsConceptual skills The ability to think and conceptualize about The ability to think and conceptualize about

abstract and complex situations concerning abstract and complex situations concerning the organizationthe organization

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Skills Needed at Different Skills Needed at Different Management LevelsManagement Levels

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MANAGEMENT - SCIENCE OR ART?MANAGEMENT - SCIENCE OR ART?

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

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Pengurusan - Satu Profesion?Pengurusan - Satu Profesion?

Untuk mengetahui sama ada pengurusan itu Untuk mengetahui sama ada pengurusan itu adalah satu profesion, kita harus lihat pada adalah satu profesion, kita harus lihat pada

beberapa ciri yang boleh menjadikannya sebagai beberapa ciri yang boleh menjadikannya sebagai satu profesion(Gabriel, 1997). satu profesion(Gabriel, 1997). Ciri-ciri ini Ciri-ciri ini

adalahadalah:: wujudnya satu kumpulan ilmu dalam bentuk teori wujudnya satu kumpulan ilmu dalam bentuk teori

atau prinsip-prinsip asas serta pengetahuan dan atau prinsip-prinsip asas serta pengetahuan dan kemahiran khusus untuk ahli-ahli profesionnya. kemahiran khusus untuk ahli-ahli profesionnya.

para profesional memperoleh status mereka para profesional memperoleh status mereka melalui latihan yang dijalani dan prestasi kerja melalui latihan yang dijalani dan prestasi kerja mereka.mereka.

para profesional perlu taat setia pada satu kod para profesional perlu taat setia pada satu kod khas etika atau tingkah laku .khas etika atau tingkah laku .

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Adakah Pengurusan Satu Proses Adakah Pengurusan Satu Proses Sejagat?Sejagat?

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

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Pengurusan di Sektor Awam dan Sektor Pengurusan di Sektor Awam dan Sektor

SwastaSwasta Ciri-Ciri Ciri-Ciri Sektor Sektor

AwamAwamSektor Sektor SwastaSwasta

Tujuan/ObjektifTujuan/Objektif Tanggung jawab sosial Tanggung jawab sosial diberi diberi

keutamaan.keutamaan.

Berkhidmat untuk Berkhidmat untuk masyarakat. masyarakat.

Memastikan penggunaan Memastikan penggunaan sumber secara optimum sumber secara optimum untuk menjanakan untung untuk menjanakan untung kepada pemegang syer.kepada pemegang syer.

AkauntibilitiAkauntibiliti Kepada rakyat secara Kepada rakyat secara umum, terutamanya apabila umum, terutamanya apabila belanjawan dibahaskan di belanjawan dibahaskan di ParlimenParlimen

Kepada pemegang Kepada pemegang saham/pemilik syarikatsaham/pemilik syarikat

Penilaian Penilaian PrestasiPrestasi

Pencapaian kualiti hidup Pencapaian kualiti hidup yang lebih baik. yang lebih baik.

Untung sesyer yang Untung sesyer yang diperoleh serta peningkatan diperoleh serta peningkatan syer pasaransyer pasaran

Insentif Diberi Insentif Diberi Skala gaji tetap dan Skala gaji tetap dan tatacara naik pangkat yang tatacara naik pangkat yang rigid. rigid. Dapat menikmati Dapat menikmati jaminan kerja. jaminan kerja.

Kenaikan gaji dan pangkat, Kenaikan gaji dan pangkat, berkait rapat dengan berkait rapat dengan prestasi kerja. prestasi kerja.

Penglibatan Penglibatan Kesatuan Pekerja Kesatuan Pekerja dalam dalam Pembuatan Pembuatan

Keputusan.Keputusan.

Penglibatan yang tinggi.Penglibatan yang tinggi. Secara tradisi penglibatan Secara tradisi penglibatan yang kecil atau tidak yang kecil atau tidak langsung, tetapi keadaan langsung, tetapi keadaan sedang berubah dengan sedang berubah dengan penglibatan yang semakin penglibatan yang semakin sedang meningkat.sedang meningkat.

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IMPORTANCE OF MANAGEMENTIMPORTANCE OF MANAGEMENT

Managers provide the direction in all kinds of Managers provide the direction in all kinds of organizations – business, governmental, organizations – business, governmental, educational, religious and the service sector. educational, religious and the service sector. Through these efforts, societal organizational Through these efforts, societal organizational and the individual employees’ objectives are and the individual employees’ objectives are achieved. achieved.

Thus, managerial work is critical to everyone Thus, managerial work is critical to everyone interested in the welfare of individual interested in the welfare of individual organizations and the society at large. organizations and the society at large.

Effective managers may be one of developed Effective managers may be one of developed countries valuable resources and they are also countries valuable resources and they are also one of the most needed resources in less one of the most needed resources in less developed countries (Peter Drucker, 1969).developed countries (Peter Drucker, 1969).

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Universal Need for Universal Need for ManagementManagement

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Development of Major Development of Major Management TheoriesManagement Theories

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Major Approaches to Major Approaches to ManagementManagement

Scientific ManagementScientific Management General Administrative TheoryGeneral Administrative Theory Quantitative ManagementQuantitative Management Organizational BehaviorOrganizational Behavior Systems ApproachSystems Approach Contingency ApproachContingency Approach

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History of ManagementHistory of Management Management has been practiced Management has been practiced

successfully for thousand of yearssuccessfully for thousand of years. .

The Great Pyramids of Cheops - 5,000 and The Great Pyramids of Cheops - 5,000 and 525 B.C. - made of 2,300,00 stones, each 525 B.C. - made of 2,300,00 stones, each weighing an average of two and a half tons - weighing an average of two and a half tons - 100,000 people - 20 years to build 100,000 people - 20 years to build

The Great Wall of China The Great Wall of China The Taj MahalThe Taj Mahal The RomansThe Romans Confucius & Lao TzeConfucius & Lao Tze The Church - JesusThe Church - Jesus Nabi Mohamad S.A.WNabi Mohamad S.A.W

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Modern ManagementModern Management

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

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““The Engineer as an The Engineer as an Economist”Economist”

““There are many good mechanical engineers. There There are many good mechanical engineers. There are also many good businessmen, but the two are are also many good businessmen, but the two are rarely combined into one person. But this rarely combined into one person. But this combination of qualities, is essential to management combination of qualities, is essential to management of industrial works, and has it’s highest of industrial works, and has it’s highest effectiveness if united in one person. And the effectiveness if united in one person. And the management of works has become a matter of such management of works has become a matter of such great and far-reaching importance as perhaps to great and far-reaching importance as perhaps to justify its classification also as one of modern arts”justify its classification also as one of modern arts”

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The Classical School of The Classical School of ManagementManagement

Administrative ManagementAdministrative Management Scientific ManagementScientific Management Personalities involved:Personalities involved:

- - Henri Fayol, Max Webber, Frederick Henri Fayol, Max Webber, Frederick Winslow Taylor, Henri Gant, and Winslow Taylor, Henri Gant, and Frank and Lillian Gilbreth.Frank and Lillian Gilbreth.

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Administrative management Administrative management

Administrative management was Administrative management was concerned primarily with how concerned primarily with how organizations should be managed organizations should be managed and structured. and structured.

The French businessman Henri Fayol The French businessman Henri Fayol and the German scholar Max Webber and the German scholar Max Webber were the main contributors to the were the main contributors to the administrative management stream administrative management stream of classical management. of classical management.

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General Administrative TheoristsGeneral Administrative Theorists

Henri FayolHenri Fayol– Believed that the practice of management was Believed that the practice of management was

distinct from other organizational functions distinct from other organizational functions – Developed fourteen principles of management that Developed fourteen principles of management that

applied to all organizational situationsapplied to all organizational situations

Max WeberMax Weber– Developed a theory of authority based on an Developed a theory of authority based on an

ideal type of organization (bureaucracy)ideal type of organization (bureaucracy) Emphasized rationality, predictability, Emphasized rationality, predictability,

impersonality, technical competence, and impersonality, technical competence, and authoritarianismauthoritarianism

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Administrative ManagementAdministrative Management Henri Fayol (1841-1925) Henri Fayol (1841-1925) He divided all activities of a business enterprise into He divided all activities of a business enterprise into

six areas as shown below:six areas as shown below:

11 TechnicalTechnical - producing and manufacturing of - producing and manufacturing of products.products.22 CommercialCommercial - buying raw materials and selling - buying raw materials and selling

manufactured manufactured goods.goods.3.3. FinancialFinancial - getting the capital necessary for - getting the capital necessary for business.business.4.4. AccountingAccounting - recording and taking stock of costs - recording and taking stock of costs and and profits. profits.5.5. ManageriaManageriall - planning, organizing, commanding,- planning, organizing, commanding,

FunctionFunction coordinating and controlling coordinating and controlling 6.6. ProtectingProtecting - protecting the assets of the company. - protecting the assets of the company.

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HENRI FAYOLS – 14 PRINCIPLESHENRI FAYOLS – 14 PRINCIPLES

1.1. Division of Work.Division of Work. 8. Centralization.8. Centralization.

2.2. Authority.Authority. 9. Scalar Chain (line of 9. Scalar Chain (line of Authority). Authority).

3.3. Discipline.Discipline. 10. Order.10. Order.

4.4. Unity of Command.Unity of Command. 11. Equity.11. Equity.

5.5. Unity of Direction.Unity of Direction. 12. Stability of Tenure of 12. Stability of Tenure of Personnel.Personnel.

6.6. Subordination of Subordination of 13. Initiative13. Initiative Individual Interests Individual Interests

to the General Interest.to the General Interest.

7.7. Remuneration.Remuneration. 14. Esprit De Corps 14. Esprit De Corps

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Administrative Administrative ManagementManagement

ContributionsContributions

1.1.The classical school made planners aware The classical school made planners aware that there are certain management that there are certain management principles that make for effective principles that make for effective management, not only in business but in management, not only in business but in other fields as well.other fields as well.

2.2.This school isolated some areas of This school isolated some areas of practical concern to managers that are still practical concern to managers that are still relevant today, e.g. the division of labour relevant today, e.g. the division of labour and the use of managerial authority. and the use of managerial authority.

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Administrative Administrative ManagementManagement

LimitationsLimitations1.The main criticism of the classical school has

come from those who believe that the business environment is too dynamic for the theory. For example, the manager’s formal authority cannot be assumed with today’s workforce which is better educated and less likely to respond to an authoritarian leadership.

2.The classical theory is too general. For example, employees may report to more than one manager and the theory does not explain which manager’s wishes have precedence.

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Scientific ManagementScientific Management

Fredrick Winslow TaylorFredrick Winslow Taylor

– The “father” of scientific managementThe “father” of scientific management

– Published Published Principles of Scientific ManagementPrinciples of Scientific Management (1911)(1911) The theory of scientific management

– Using scientific methods to define the “one best way” for a job to be done:

Putting the right person on the job with the correct tools and equipment.

Having a standardized method of doing the job.

Providing an economic incentive to the worker.

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Taylor’s Five Principles of Taylor’s Five Principles of ManagementManagement

1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.

4. Divide work and responsibility almost equally between management and workers.

5. Management takes over all work for which it is better fitted than the workers.

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Scientific ManagementScientific Management

Time and Motion studies.Time and Motion studies. Differential Pay.Differential Pay. Reorganization of Supervision.Reorganization of Supervision. Scientific Recruitment and Scientific Recruitment and

TrainingTraining Intimate, Friendly Cooperation Intimate, Friendly Cooperation

between the Managers and between the Managers and Workers.Workers.

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Scientific Management Scientific Management (cont’d)(cont’d)

Frank and Lillian GilbrethFrank and Lillian Gilbreth– Focused Focused on increasing worker on increasing worker

productivity through the reduction of productivity through the reduction of wasted motionwasted motion

– Developed the microchronometer to time Developed the microchronometer to time worker motions and optimize worker motions and optimize performanceperformance

They studied the brick-laying process and then successfully reduced the 18 steps involved in the

process to 4 ½ steps.

By practicing the Gilbreth method a mason was able to lay 2700 units of bricks a day compared to

1000 units per working day prior to this.

The brick-laying productivity increased from 120 units to 350 units per man-hour.

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Henri Gantt (1861 – 1919)Henri Gantt (1861 – 1919)The greatest contribution by Gantt is the Gantt Chart which is a part of the planning and control process and is used up till today. By using this chart a manager is able to quickly see the progress of the various stages of a certain project such as receipt of input, production and delivery.

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Gantt Chart ………….eg.Gantt Chart ………….eg.

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How Do Today’s Managers Use How Do Today’s Managers Use Scientific Management?Scientific Management?– Use time and motion studies to increase Use time and motion studies to increase

productivityproductivity

– Hire the best qualified employeesHire the best qualified employees

– Design incentive systems based on Design incentive systems based on outputoutput

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THE BUREAUCRATIC THE BUREAUCRATIC APPROACHAPPROACH..

Max Weber (1864 – 1920), a German sociologist is known as the Father of Bureaucracy. The following are the pillars of bureaucracy:1. authority and responsibility is clearly defined in detail.2. the position in an organization is arranged according to hierarchy.3. promotions are given based on qualification4. all administrative decisions and actions taken are well recorded to ensure continuity.5. there exists a difference in entity between the owners and the management of an organization, and6. the existing procedures are applicable to all workers without fear or favour.

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Contribution.Contribution.

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

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LimitationsLimitations.. 1. Rigidity of procedures has led to 1. Rigidity of procedures has led to

excessive red tape and the decision making process is lengthened and takes a longer time.

2. Organisations that exercise excessive bureaucracy takes a longer time to change to the dynamic environment.

3. Occurs mismatch between doing a job professionally and at the same time adhering to set rules, procedures and processes.

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Weber’s Ideal BureaucracyWeber’s Ideal Bureaucracy

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WHAT DO YOU THINK?WHAT DO YOU THINK?

IS BUREAUCRACY IS BUREAUCRACY

NECESSARY?NECESSARY?

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Understanding Understanding Organizational Behavior Organizational Behavior

Organizational Behavior (OB)Organizational Behavior (OB)– The study of the actions of people at The study of the actions of people at

work; people are the most important asset work; people are the most important asset of an organizationof an organization

Early OB AdvocatesEarly OB Advocates– Robert OwenRobert Owen

– Hugo MunsterbergHugo Munsterberg

– Mary Parker FollettMary Parker Follett

– Chester BarnardChester Barnard

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Early Advocates of OBEarly Advocates of OB

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The Behavioural SchoolThe Behavioural School

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

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Hawthorne StudiesHawthorne Studies

Elton Mayo (1880-1949) and his associates Elton Mayo (1880-1949) and his associates from Harvard conducted a famous study of from Harvard conducted a famous study of human behaviour at the Hawthorne Plant human behaviour at the Hawthorne Plant of the Western Electric Company, Chicago. of the Western Electric Company, Chicago.

His final conclusion was that when people His final conclusion was that when people are accorded special attention they tend are accorded special attention they tend to increase their effort. This phenomenon to increase their effort. This phenomenon has become to be called as the has become to be called as the “Hawthorne Effect”.“Hawthorne Effect”.

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The Test Room Studies(1924-1927)The Test Room Studies(1924-1927)

Mayo and his associates were testing the Mayo and his associates were testing the effects of variation in illumination on effects of variation in illumination on human efficiency. To everyone’s human efficiency. To everyone’s surprise, output increased in both the surprise, output increased in both the experimental and the control group experimental and the control group regardless of the decrease in illumination regardless of the decrease in illumination to the ‘twilight level’. The findings to the ‘twilight level’. The findings showed that illumination was only one showed that illumination was only one but not the most important factor that but not the most important factor that affected output of the workers.affected output of the workers.

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

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Interviewing Studies(1928-1931)Interviewing Studies(1928-1931)

Twenty one thousand people were Twenty one thousand people were interviewed. Their finding showed interviewed. Their finding showed that the reasons for an individual’s that the reasons for an individual’s

dissatisfaction with the job cannot be dissatisfaction with the job cannot be easily identified.easily identified.

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The group of men and their supervisors were observed in their normal working conditions. The conclusions drawn were that workers in a group develop social relationships and form group norms. This informal organization affects the worker’s motivation and output. These studies showed that workers could no

longer be considered as a factor of production but must be recognized as:

SOCIAL BEINGS WHOSE WANTS, DESIRES AND FEELINGS INFLUENCED PRODUCTIVITY.

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The Behavioural SchoolThe Behavioural School ContributionsContributions

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

6363

The Behavioural SchoolThe Behavioural School

LimitationsLimitations

While the concept of the worker as a While the concept of the worker as a “social man” did much to counteract “social man” did much to counteract

the overemphasis on organization the overemphasis on organization and rationality, the experience on and rationality, the experience on

the factory floor did not show drastic the factory floor did not show drastic improvement in productivity as improvement in productivity as

expected.expected.

6464

The Systems ApproachThe Systems Approach

System DefinedSystem Defined– A set of interrelated and interdependent parts arranged A set of interrelated and interdependent parts arranged

in a manner that produces a unified whole.in a manner that produces a unified whole.

Basic Types of SystemsBasic Types of Systems– Closed systemsClosed systems

Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is internal).environment (all system input and output is internal).

– Open systemsOpen systems Dynamically interact to their environments by taking Dynamically interact to their environments by taking

in inputs and transforming them into outputs that are in inputs and transforming them into outputs that are distributed into their environments.distributed into their environments.

6565


The Organization as an Open The Organization as an Open SystemSystem

6666

Implications of the Systems Implications of the Systems ApproachApproach

Coordination of the organization’s parts is Coordination of the organization’s parts is essential for proper functioning of the essential for proper functioning of the entire organization.entire organization.

Decisions and actions taken in one area Decisions and actions taken in one area of the organization will have an effect in of the organization will have an effect in other areas of the organization.other areas of the organization.

Organizations are not self-contained and, Organizations are not self-contained and, therefore, must adapt to changes in their therefore, must adapt to changes in their external environment.external environment.

6767

The Systems ApproachThe Systems Approach ContributionsContributions

1. The systems approach helped managers to accept 1. The systems approach helped managers to accept conceptually that seemingly contradictory ideas conceptually that seemingly contradictory ideas underlying underlying management theory were actually related. management theory were actually related. As a result, As a result, managers of different specializations have managers of different specializations have begun to look at begun to look at how their work relates to the work how their work relates to the work of others in the of others in the achievement of organizations achievement of organizations objectives.objectives.

2.2. The systems approach has made possible the better use The systems approach has made possible the better use of of simulation models and operations research as in the simulation models and operations research as in the development development and refinement of the sub-systems. When and refinement of the sub-systems. When computerized, these computerized, these methods of problem solving save time methods of problem solving save time and effort and help managers and effort and help managers predict and thus avoid possible predict and thus avoid possible areas of conflict. In short, decision areas of conflict. In short, decision making is facilitated and making is facilitated and improved.improved.

6868

The Systems ApproachThe Systems Approach


1.1. The systems approach, while stressing The systems approach, while stressing the the vital need to prepare the organization vital need to prepare the organization well in well in advance, is not able to help people advance, is not able to help people adapt to adapt to change with current times.change with current times.

2.2. The usefulness of this approach depends The usefulness of this approach depends on on the degree to which assumptions made the degree to which assumptions made about the inter-relationship of the sub-about the inter-relationship of the sub-system and overall system reflect reality.system and overall system reflect reality.

6969

Quantitative Approach to Quantitative Approach to ManagementManagement

Quantitative Approach– Also called operations research or

management science

– Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

– Focuses on improving managerial decision making by applying: Statistics, optimization models, information

models, and computer simulations

7070

The Contingency ApproachThe Contingency Approach

Contingency Approach DefinedContingency Approach Defined

– Also sometimes called the Also sometimes called the situational situational approach.approach.

– There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to management principles (rules) by which to manage organizations.manage organizations.

– Organizations are individually different, face Organizations are individually different, face different situations (contingency variables), different situations (contingency variables), and require different ways of managing.and require different ways of managing.

7171


The contingency approach attempts The contingency approach attempts to integrate the various schools of to integrate the various schools of management thought. According to management thought. According to this approach, management principles this approach, management principles and concepts of the various schools and concepts of the various schools have no general or universal have no general or universal applicability in all conditions. applicability in all conditions.

In other words, there is no one best In other words, there is no one best way of doing things under all way of doing things under all conditions. conditions.

7272


ContributionsContributions

The major contribution of the The major contribution of the contingency approach has been to contingency approach has been to

provide managers in real life provide managers in real life situations with a method of decision situations with a method of decision making on all aspects of the internal making on all aspects of the internal

and external environment.and external environment.

7373



Critics say that there is nothing new in the Critics say that there is nothing new in the contingency approach. In fact, this contingency approach. In fact, this

approach has a little bit of everything from approach has a little bit of everything from the classical to the systems approach. the classical to the systems approach.

However, supporters of the theory point out However, supporters of the theory point out that they have made the other theorists that they have made the other theorists

more aware that universal principles can be more aware that universal principles can be applied without the “special circumstances” applied without the “special circumstances”

unique to every management situation.unique to every management situation.

7474

Current Trends and IssuesCurrent Trends and Issues

GlobalizationGlobalization EthicsEthics Workforce DiversityWorkforce Diversity EntrepreneurshipEntrepreneurship E-businessE-business Knowledge ManagementKnowledge Management Learning OrganizationsLearning Organizations Quality ManagementQuality Management

7575

Current Trends and Issues Current Trends and Issues (cont’d)(cont’d)

GlobalizationGlobalization– Management in international organizationsManagement in international organizations– Political and cultural challenges of Political and cultural challenges of

operating in a global marketoperating in a global market EthicsEthics

– Increased emphasis on ethics education in Increased emphasis on ethics education in college curriculumscollege curriculums

– Increased creation and use of codes of Increased creation and use of codes of ethics by businessesethics by businesses

7676


Workforce DiversityWorkforce Diversity– Increasing heterogeneity in the workforceIncreasing heterogeneity in the workforce

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

– Aging workforceAging workforce Older employees who work longer and do not Older employees who work longer and do not

retireretire The increased costs of public and private benefits The increased costs of public and private benefits

for older workersfor older workers

An increasing demand for products and services An increasing demand for products and services related to aging.related to aging.

7777


Entrepreneurship DefinedEntrepreneurship Defined– The process whereby an individual or group of The process whereby an individual or group of

individuals use organized efforts to create value individuals use organized efforts to create value and grow by fulfilling wants and needs through and grow by fulfilling wants and needs through innovation and uniqueness.innovation and uniqueness.

Entrepreneurship processEntrepreneurship process– Pursuit of opportunitiesPursuit of opportunities

– Innovation in products, services, or business Innovation in products, services, or business methodsmethods

– Desire for continual growth of the organizationDesire for continual growth of the organization

7878


E-Business (Electronic Business)E-Business (Electronic Business)

– The work preformed by an organization using The work preformed by an organization using electronic linkages to its key constituencieselectronic linkages to its key constituencies

– E-commerce: the sales and marketing E-commerce: the sales and marketing component of an e-businesscomponent of an e-business

Categories of E-BusinessesCategories of E-Businesses

– E-business enhanced organizationE-business enhanced organization

– E-business enabled organizationE-business enabled organization

– Total e-business organizationTotal e-business organization

7979


Knowledge ManagementKnowledge Management– The cultivation of a learning culture where The cultivation of a learning culture where

organizational members systematically organizational members systematically gather and share knowledge with others gather and share knowledge with others in order to achieve better performance.in order to achieve better performance.

Learning OrganizationLearning Organization– An organization that has developed the An organization that has developed the

capacity to continuously learn, adapt, and capacity to continuously learn, adapt, and change.change.

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Learning Organization versus Learning Organization versus Traditional OrganizationTraditional Organization

8181

THANK YOUTHANK YOU

8383

ChapterChapter 2 2

THETHE

BUSINESS BUSINESS

ENVIRONMENTENVIRONMENT

8484

THE BUSINESS THE BUSINESS ENVIRONMENTENVIRONMENT

An organization, whether An organization, whether businessbusiness

or non-business, exists in an or non-business, exists in an

ever changing dynamic ever changing dynamic environment.environment.

‘‘No Organisation is an IslandNo Organisation is an Island ‘ ‘

8585

The External The External EnvironmentEnvironment

ORGANISATION

PHYSICAL/MATERIAL

POLITICAL/LEGAL ECONOMIC

SOCIAL/POLITICAL TECHNOLOGY

ECOLOGY

8686

The Material or Physical The Material or Physical EnvironmentEnvironment

use and supply of land and raw use and supply of land and raw materialsmaterials

the danger from pollutants and the danger from pollutants and residuesresidues

the availability of energy resourcesthe availability of energy resources

The availability of raw materials in The availability of raw materials in certain parts of the world has certain parts of the world has determined the location of industries.determined the location of industries.

8787

The Economic The Economic EnvironmentEnvironment

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

8888

The Legal and Political The Legal and Political EnvironmentEnvironment

The law sets out the operating The law sets out the operating conditions of most businesses, conditions of most businesses,

ranging from specific bans on certain ranging from specific bans on certain kinds of behaviour, to regulations kinds of behaviour, to regulations

requiring the reporting of income and requiring the reporting of income and staffing at the various level of the staffing at the various level of the

organizationsorganizations

8989

The Legal and Political The Legal and Political EnvironmentEnvironment

Companies have to comply with laws Companies have to comply with laws setting minimum health and safety setting minimum health and safety

standards; laws on employment standards; laws on employment practices; laws banning practices; laws banning

discrimination on grounds of race, discrimination on grounds of race, religion, marital status and sex; religion, marital status and sex;

industrial relation laws; and a whole industrial relation laws; and a whole host of other regulations specific to host of other regulations specific to

individual industries and businesses. individual industries and businesses.

9090

The Social or Cultural The Social or Cultural Environment.Environment.

It is made up of the attitudes, It is made up of the attitudes, customs, beliefs, education, etc. of customs, beliefs, education, etc. of people ant the society at large. The people ant the society at large. The

most important factors of this most important factors of this environment are the class, culture, environment are the class, culture, age, sex and political beliefs of the age, sex and political beliefs of the

people in it. people in it.

9191

The Technological The Technological EnvironmentEnvironment

Recent developments in technology, Recent developments in technology, especially information technology, have had especially information technology, have had

an enormous influence on the ways an enormous influence on the ways companies operate. Computers have companies operate. Computers have

revolutionized product design and revolutionized product design and manufacturing; for example, the manufacturing; for example, the

introduction of sophisticated automated or introduction of sophisticated automated or robotic machinery in the car production robotic machinery in the car production

industry can now enable a group of people industry can now enable a group of people to do what required a mini organization just to do what required a mini organization just

a few years ago. a few years ago.

9292

The Internal The Internal EnvironmentEnvironment

The Power Culture.The Power Culture. The Role Culture.The Role Culture. The Task CultureThe Task Culture The Person CultureThe Person Culture

9393

The Power CultureThe Power Culture

Power rests with a central figure of Power rests with a central figure of authority who exercises control authority who exercises control

through the selection of key through the selection of key individuals for important positions in individuals for important positions in

the organisation. the organisation.

An organization with this kind of culture An organization with this kind of culture operates with few written rules operates with few written rules

9494

The Role CultureThe Role Culture

The organization based upon The organization based upon the role culture is structured the role culture is structured

according to functions or according to functions or expertise, for example the expertise, for example the finance department, the finance department, the

personnel department, et personnel department, et

9595

The Task CultureThe Task Culture

The task culture emphasizes the The task culture emphasizes the accomplishment of the task. accomplishment of the task.

In order to accomplish this task culture In order to accomplish this task culture organization seeks to bring together organization seeks to bring together appropriately qualified personnel in a appropriately qualified personnel in a

team, and gives them he resources they team, and gives them he resources they need to do their jobs. The team members need to do their jobs. The team members have a substantial amount of control over have a substantial amount of control over

their work, and employees also enjoy their work, and employees also enjoy mutual respect within the group, based mutual respect within the group, based upon capability rather than age or rank. upon capability rather than age or rank.

9696

The Person CultureThe Person Culture

In the person culture the In the person culture the purpose of the organization’s purpose of the organization’s

existence is to serve the existence is to serve the individual. The individual is individual. The individual is

therefore the central point in therefore the central point in this culture. Organizations this culture. Organizations

based upon the person culture based upon the person culture are rare – usually they are are rare – usually they are

family firms. family firms.

9797

THANK YOUTHANK YOU

9999

CHAPTER 3CHAPTER 3

PLANNINGPLANNING

100100

The Nature Of PlanningThe Nature Of Planning

Planning is the process of Planning is the process of setting goals and choosing the setting goals and choosing the means to achieve those goals. means to achieve those goals.

Without plans, managers cannot Without plans, managers cannot know how to organize people know how to organize people and resources effectively.and resources effectively.

101101

Characteristics of PlanningCharacteristics of Planning

Planning is the Planning is the beginning beginning of the of the process of management process of management

Planning is an Planning is an intellectualintellectual process process which requires managers to think which requires managers to think before acting. before acting.

Planning is also a Planning is also a continuouscontinuous process process

102102

Managers & PlanningManagers & Planning

Planning is important to all Planning is important to all managers regardless of their managers regardless of their

level in the organization. level in the organization.

However there are some However there are some differences in involvement at the differences in involvement at the

different levels.different levels.

103103

WHY IS PLANNING IMPORTANT?WHY IS PLANNING IMPORTANT?

Planning involves the setting up of goals Planning involves the setting up of goals and goals are important for at least four and goals are important for at least four

reasons (Stoner, 1995).reasons (Stoner, 1995). Goals provide a sense of direction.Goals provide a sense of direction. Goals focus our efforts.Goals focus our efforts. Goals guide our plans and actions.Goals guide our plans and actions. Goals help us evaluate our progress.Goals help us evaluate our progress.

104104

Types Of PlansTypes Of Plans

Objectives.Objectives.

Objectives refers to goals that Objectives refers to goals that the organizations intends to the organizations intends to achieve.achieve.

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

105105

SS == SPECIFICSPECIFIC

MM == MEASURABLEMEASURABLE

AA == ATTAINABLEATTAINABLE

RR == RATIONALRATIONAL

TT == TME BASEDTME BASED

EE = = EXCITINGEXCITING

RR == REWARDINGREWARDING

106106

VISIONVISION

WHAT THE FIRM WHAT THE FIRM WANTS TO BE IN WANTS TO BE IN

THE FUTURETHE FUTURE

107107

MISSIONMISSION

HOW THE FIRM HOW THE FIRM INTENDS TO INTENDS TO AHIEVE ITS’ AHIEVE ITS’

VISIONVISION

108108

VISION & MISSIONVISION & MISSION

VISION

VISION: ONE’S PICTURE ABOUT THE FUTURE OR TARGET TO BE ACHIEVED

MISSION: HOW TO ACHIEVE THIS TARGET ?

109109

S.W.O.T. ANALYSISS.W.O.T. ANALYSIS

S = STRENGTHSS = STRENGTHS W = WEAKNESSW = WEAKNESS

T = THREATST = THREATS O = O = OPPORTUNITIESOPPORTUNITIES

110110

Environmental AppraisalEnvironmental Appraisal

This is an in-depth analysis of the This is an in-depth analysis of the relevant environment and results in relevant environment and results in

the identification of threats and the identification of threats and opportunities available in the firms opportunities available in the firms

external environment.external environment.

T & O COMPONENTT & O COMPONENT

IN SWOT ANALYSISIN SWOT ANALYSIS

111111

INTERNAL APPRAISALINTERNAL APPRAISAL

REFERS TO AN ANALYSIS OF THE REFERS TO AN ANALYSIS OF THE INTERANAL STRENGTHS AND INTERANAL STRENGTHS AND

WEAKNESSES OF THE COMPANYWEAKNESSES OF THE COMPANY

INVOLVES THE S & W INVOLVES THE S & W COMPONENTS COMPONENTS

OF THE SWOT ANALYSISOF THE SWOT ANALYSIS

112112

Policies.Policies.

A policy is a general guideline for A policy is a general guideline for decision making.decision making.

In the words of George R. Terry In the words of George R. Terry (1977), ‘policy’ is a verbal, (1977), ‘policy’ is a verbal,

written or implied overall guide, written or implied overall guide, setting up boundaries that setting up boundaries that

supply the general limits and supply the general limits and direction in which managerial direction in which managerial

actions will take place.actions will take place.

113113

Procedures.Procedures.

Policies are carried out by means of Policies are carried out by means of more detailed guidelines called more detailed guidelines called “procedures”“procedures”

A procedure provides a detailed set A procedure provides a detailed set of instructions for performing a of instructions for performing a sequence of actions involved in sequence of actions involved in

doing a certain job. The same steps doing a certain job. The same steps are followed each time that are followed each time that particular job or activity is particular job or activity is

performedperformed

114114

For example the procedure for For example the procedure for purchasing raw materialspurchasing raw materials

requisition from the storekeeper to the requisition from the storekeeper to the purchasing department.purchasing department.

calling tenders for the purchase of calling tenders for the purchase of materials.materials.

placing orders with the selected placing orders with the selected supplierssuppliers

inspecting the materials purchased by inspecting the materials purchased by the inspection department.the inspection department.

making payments to the suppliers by making payments to the suppliers by the accounts department.the accounts department.

115115

Methods.Methods.

A method is a prescribed way in A method is a prescribed way in which one step of a procedure is which one step of a procedure is

to be performed. A method is to be performed. A method is thus a component part of the thus a component part of the procedure. For performing a procedure. For performing a

particular step, an organization particular step, an organization may have a number of methods.may have a number of methods.

116116

Rules.Rules.

Rules are detailed and recorded Rules are detailed and recorded instructions that a specific action instructions that a specific action

must or must not be performed in a must or must not be performed in a given situation. In providing overtime given situation. In providing overtime

to workers, regulating traveling to workers, regulating traveling allowances, entertainment bills and allowances, entertainment bills and other similar matters, a uniform way other similar matters, a uniform way of handling them or dealing with the of handling them or dealing with the

case has to be followed.case has to be followed.

117117

Programmes.Programmes.

Programmes are precise plans or Programmes are precise plans or definite steps in sequence which definite steps in sequence which need to be taken to discharge a need to be taken to discharge a

given task.given task.

118118

Budgets.Budgets.

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

119119

Strategic and Operational Strategic and Operational PlansPlans

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

Time HorizonTime Horizon Scope.Scope. Degree of detail.Degree of detail.

120120

Strategic PlanningStrategic Planning It decides the major goals and policies of It decides the major goals and policies of

allocation of resources to achieve these allocation of resources to achieve these goals.goals.

It is done at higher levels of management.It is done at higher levels of management. It is long term.It is long term. It is generally based on long-term forecasts It is generally based on long-term forecasts

about technology, political environment, about technology, political environment, etc. and is more uncertain.etc. and is more uncertain.

It is less detailed because it is not involved It is less detailed because it is not involved with the day-to-day operation of the with the day-to-day operation of the organization.organization.

121121

Operational PlanningOperational Planning..

It decides the detailed use of resources for It decides the detailed use of resources for achieving each goal.achieving each goal.

It is done at the lower levels of It is done at the lower levels of management.management.

It is short term.It is short term. It is generally based on past performance It is generally based on past performance

of the organization and is less uncertain.of the organization and is less uncertain. It is more detailed because it involves the It is more detailed because it involves the

day-to-day operation of the organization.day-to-day operation of the organization.

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ORGANIZINGORGANIZING

An OrganisationAn Organisation::

For much of our lives, we belong to For much of our lives, we belong to one organization or another-be it a one organization or another-be it a

class, a school, a club or an class, a school, a club or an association. Organizations are association. Organizations are

formed so that people who share a formed so that people who share a common set of values or interest can common set of values or interest can work together towards achieving that work together towards achieving that

common objective. common objective.

123123

Organizations defined ……Organizations defined ……

Organizations are characterized by:Organizations are characterized by: the people or members of the the people or members of the

organizationsorganizations their common objectives their common objectives the structure they develop to help the structure they develop to help

them achieve these objectivesthem achieve these objectives

124124

According to Amitai Etzioni According to Amitai Etzioni (1965)(1965)

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

specific goals. specific goals.

125125

The Task Of OrganizingThe Task Of Organizing

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

““The purpose of organization is to The purpose of organization is to secure that this division (the secure that this division (the

separation and specialization of separation and specialization of task) works smoothly, that there is task) works smoothly, that there is unity of effort, in other words, co-unity of effort, in other words, co-

ordination.”ordination.”

126126

The Organisation The Organisation Process.Process.

Detailing of WorkDetailing of Work Division of WorkDivision of Work DepartmentationDepartmentation Coordination of WorkCoordination of Work Monitor & ReorganizeMonitor & Reorganize

127127

Principles Of OrganisingPrinciples Of Organising

The Principle of Objective.The Principle of Objective.

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

128128


The Principle of Specialization.The Principle of Specialization.

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

129129


The Principle of Coordination.The Principle of Coordination.

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

130130


The Principle of Authority.The Principle of Authority.

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

131131


The Principle of Responsibility.The Principle of Responsibility. Managers have absolute Managers have absolute

responsibility for the acts of their responsibility for the acts of their subordinates.subordinates.

132132


The Principle of Definition.The Principle of Definition.

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

133133


The Principle of The Principle of Correspondence.Correspondence.

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

134134

The Principle of Span of The Principle of Span of Control.Control.

No person should supervise more No person should supervise more than five, or at the most six, direct than five, or at the most six, direct subordinates whose work interlocks.subordinates whose work interlocks.

135135


The Principle of Balance.The Principle of Balance.

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

136136


The Principle of Continuity.The Principle of Continuity.

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

137137

DepartmentationDepartmentation

Departmentation is a method of grouping the Departmentation is a method of grouping the related task, activities or units of an organization. related task, activities or units of an organization.

There are two main method of departmentationThere are two main method of departmentation : :

1.1. by process or business function by process or business function

2.2. by division by division product product region region customercustomer

138138

Types Of Organisational Types Of Organisational StructuresStructures

1.1. lineline

2.2. line and staffline and staff

3.3. pure functionalpure functional

4.4. line and functional staff line and functional staff

5.5. committee.committee.

6. 6. task force.task force.

7.7. the matrix organization.the matrix organization.

139139

THANK YOUTHANK YOU

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