Chapter 6 - PPT

All Rights ReservedBUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition)© Oxford Fajar Sdn. Bhd. (008974-T), 2012 6– 2

Introduction to Management

CHAPTER SIX

LEARNING OUTCOMES

In this chapter, you will learn to:

Define what an organization is.

Describe managers and the three managerial levels in organizations.

Describe management as a process.

Explain communication as an effective tool in organizations.

Explain the differences between efficiency and effectiveness, and their importance for organizational performance.

Describe the skills needed by managers and how they differ according to managerial levels.

Explain the roles of managers in organizations.

Describe the five types of organizational structures.

Explain four main theories of motivation.

LEARNING OUTCOMES (cont.)

ORGANIZATION

• An organization is a systematic arrangement of people who work together to achieve a common purpose.

• There are two types of organizations:– Profit-oriented

– Non-profit oriented

CORE ELEMENTS OF AN ORGANIZATION

• There are three core elements that are common in all organizations:

– Organizational goals

– People

– Structure

MANAGERS IN ORGANIZATIONS

• A manager is a person who is responsible to co-ordinate, guide and supervise the work and performance of other organizational members, to attain organizational goals.

• A manager’s success depends very much on his/her ability to get things done through other individuals.

MANAGERIAL LEVELS

• There are three managerial levels in organizations:– Top-level– Middle-level– First-level

MANAGERIAL LEVELS (cont.)

Top-level managers

• Set the goals and provide the strategic directions for the organization.

• Accountable for the overall management of the organization.

Middle-level managers

• Responsible for carrying out the goals set by top management.

• Perform as linkages between the top level and the first-line managers.

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition)© Oxford Fajar Sdn. Bhd. (008974-T), 2012 6– 10

First-level managers

• Interact and work most closely with the operational employees.

• Responsible to direct and supervise the actual day-to-day work of the organization at the operating level.

MANAGEMENT PROCESS

• Management is the process and activities involved in pursuing organizational goals efficiently and effectively by planning, organizing, leading and controlling the organization’s resources.

MANAGEMENT FUNCTIONS

Planning

• Planning involves setting appropriate and clear goals and objectives, and establishing appropriate strategies to accomplish them.

MANAGEMENT FUNCTIONS (cont.)

Organizing • Organizing is the process of arranging and

coordinating organizational resources, particularly human resources, to carry out the organizational plan.

Leading• Leading is a process of motivating subordinates,

and inspiring others, towards achieving the organizational goals.

Controlling

• Controlling is the process to ensure that performance is as planned and taking the necessary corrective actions/changes when needed.

MANAGEMENT FUNCTIONS (cont.)

EFFECTIVE COMMUNICATION AS A MANAGEMENT TOOL

EFFICIENCY AND EFFECTIVENESS

Effectiveness • The degree to which an organization achieves its

goals. • It is about doing the right things, typically in terms of

quantity as well as quality. Efficiency • The degree of how well resources are used to achieve

a goal. • It is about doing the things right.

RELATIONSHIP BETWEEN EFFICIENCY, EFFECTIVENESS AND PERFORMANCE

MANAGEMENT SKILLS

Technical skills• The ability to understand and demonstrate

knowledge and proficiency in a specialized field.

Human skills• The ability to interact and work well with other

people.

Conceptual skills• The ability to think of situations analytically from

a broad perspective.

MANAGEMENT SKILLS AT DIFFERENT MANAGERIAL LEVELS

MANAGERIAL ROLES

Interpersonal Roles• Interpersonal roles are primarily concerned with relationships

with other people. The three roles under interpersonal roles are figurehead, leader, and liaison.

Informational Roles• Managers obtain information and must communicate

information to people inside and outside the organization. The three informational roles are monitor, disseminator and spokesperson.

Decisional Roles • Decisional roles require managers to plan strategy and utilize

resources. There are four decision roles: entrepreneur, disturbance handler, resource allocator, and negotiator.

MANAGERIAL ROLES (cont.)

ORGANIZATIONAL STRUCTURE

• Organizational structure is the organization’s formal framework by which tasks and jobs are divided, grouped and coordinated.

FUNCTIONAL STRUCTURE

• In a functional structure, work activities are grouped according to functions.

PRODUCT STRUCTURE

• Product structures group all activities and functions needed to produce and market a particular product/service under one unit/department.

GEOGRAPHICAL STRUCTURE

• In a geographical structure, units are divided according to location or geographical area.

CUSTOMER STRUCTURE

• In a customer structure, units are divided according to the type of customers an organization has.

MATRIX STRUCTURE

• A matrix structure is a two-dimensional reporting structure that simultaneously groups people and resources by function and by project.

MOTIVATING EMPLOYEES

• Motivation is the driving force that is capable of bringing out the best in people.

• A highly motivated person always strive to work harder than an unmotivated person.

HIERARCHY OF NEEDS THEORY

• According to Maslow, there are five categories of needs that people seek to satisfy:

Physiological needsPhysiological needs are the most basic human needs such as food, shelter, clothing and water.

Safety needsThese are the basic needs for a safety and security.

Belongingness needsRelate to the desire for social interaction, relationships and

friendship with others.

HIERARCHY OF NEEDS THEORY (cont.)

Esteem needsRelate to the desire to feel good about oneself and receive recognition from others.

Self-actualization needsRelate to the desire for psychological development and growth to realize one’s full potential as a human being.

THEORY X AND THEORY Y

• Theory X is a negative view that assumes employees are inherently lazy and relatively lack ambitions at work.

• Theory Y is a positive view that assumes employees are ambitious, self-motivated and willing to accept greater responsibilities.

MOTIVATOR–HYGIENE THEORY

Motivating factors

• Factors that are related to the nature of the work itself (autonomy, responsibility, personal growth, appreciation and recognition).

• Motivator factors are sources of job satisfaction.

Hygiene factors

• Factors relating to the context of the job.

• When hygiene needs are not met, employees become dissatisfied.

• Satisfying hygiene needs will lead to no dissatisfaction, but will not necessarily make employees satisfied.

MOTIVATOR–HYGIENE THEORY (cont.)

EXPECTANCY THEORY

1. ExpectancyThe degree of expectation that exerting an amount of effort will lead to certain performance.

2. Instrumentality The degree to which an individual believes that

performance will lead to attaining desired outcomes.

3. ValenceThe attractiveness of outcomes as the result of effort and performance.

EXPECTANCY THEORY (cont.)

Chapter 6 - PPT

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