MGT632

MANAGEMENT AND ORGANIZATION

TOPIC
MANAGEMENT AND ORGANIZATION STRUCTURE
Nur ariffah bt Abd Rahman 2013424482
Azra b. Z.Ismail 2013264682

Farihah bt Ozlan 2013478816

Mimi Azira bt Mohd Ayob Khan 2013463136

Nur Amnah Basirah bt azmi 2013816804

WHAT IS MANAGEMENT?
A classic definition
Management is work and as such it has its own skills, its own
tools and its own techniques
Peter F.Drucker
A broader definition
Are the methods that aid the structuring, investigation, analysis,
decision-making and communication of business issues

EFFECTIVENESS VERSUS EFFICIENCY

Effectiveness
-Achieved when the organization pursues appropriate goals.
- doing right thing

Efficiency

-Achieved by using the fewest inputs (e.g., people and money) to

generate a
given output.
- doing things right

THE ORGANIZATION
What is organization?
- To the art of getting people together on a common
platform to make them work towards a common predefined goal.
What do all organizations have in common?

They are composed of people whose efforts must be coordinated

if the organization want to accomplish its goals.

THE MANAGEMENT PROCESS

PLANNI
NG

CONTRO
LLING

MISSION
AND
ORGANIZ
ATIONAL
GOAL

LEADING

ORGANIZ
ING

PLANNING AND ORGANIZING

Planning involving
Vision & mission
Strategizing
Goals and objective
Organizing
Organization design
Culture and social network

LEADING AND CONTROLLING

Leading
- Leadership
Decision making and communications
Groups / team
Motivation
Controlling
System / process
Strategic human resources

MANAGERS

Manager is the person responsible for planning and directing the work of a
group of individuals, monitoring their work, and taking corrective action
when necessary to achieving the goals.

MINTZBERGS MANAGERIAL ROLES

Interpersonal
Roles
Figurehead
Leader
Liaison

Informational
Roles

Decisional
Roles

Monitor
Disseminator
Spokesperson

Entrepreneur
Disturbance
handler
Resource
allocator
Negotiator

INTERPERSONAL ROLES

The managerial roles in this category involveprovidinginformation

and ideas

INFORMATIONAL ROLES

The managerial roles in this category involveprocessinginformation.

DECISIONAL ROLES

The managerial roles in this category involveusinginformation.

TYPES OF MANAGERS

Functional Manager
A manager, who is responsible for a particular function of an
organization
General Manager
Manager, who are responsible for all the activities being carried out in
all organizational functions.
First-line manager
The manager who supervises the operational employees.

MANAGERIAL LEVELS

MANAGEMENT SKILLS
Technical skills are job-specific knowledge and techniques
needed to proficiently perform specific tasks.
Human skills are the ability to work well with other people
individually and in a group.
Conceptual skills are the ability to think and to conceptualize
about abstract and complex situations.

PLANNING

PLANNING
Means looking ahead and chalking out future courses of action
to be followed.
It is a systematic activity which determines when, how and
who is going to perform a specific job.
Planning is a detailed programme regarding future courses of
action

WHY PLAN?

Planning Provides Direction

Planning Reduces Risks of Uncertainty

Planning Reduces Overlapping and Wasteful Activities

Planning Promotes Innovative Ideas

Planning Facilitates Decision Making

Planning Establishes Standards for Controlling

THE BENEFITS OF PLANNING

Planning Provides Direction

- The obvious outcome of this is that all the employees get a

and all their efforts are focused towards a particular
end.

direction

Planning Reduces Risks of Uncertainty

- Possible changes in future are anticipated and various activities

planned in the best possible way. In this way, the risk of
future
uncertainties can be minimized.

are

THE BENEFITS OF PLANNING

Planning Reduces Overlapping and Wasteful Activities

- Consequently, the problems of when, where, what and why are

decided. This puts an end to disorder and suspicion.

almost

Planning Promotes Innovative Ideas

- While making such an effort of discovery, many new ideas

emerge and
they are studied intensively in order to determine the best out of them.
- In this way, planning imparts a real power of thinking in the
It leads to the birth of innovative and creative ideas.

managers.

THE BENEFITS OF PLANNING

Planning Facilitates Decision Making
- Under it, a variety of alternatives are discovered and the best alternative
is chosen. It also lays down the criteria for evaluatingcourses of action.
In this way, planning facilitates decision making.
Planning Establishes Standards for Controlling
- Under controlling, at the time of completing the work, the
actual work
done is compared with the standard work and
deviations are found out and if
the work has not been done as
desired the person concerned are held
responsible.

PLANNING PROCESS IN MANAGEMENT

1. Identify Resources
- Each goal should have financial and human resources projections associated with
its completion.
2. Establish Goal-Related Tasks
- Each goal should have tasks or projects associated with its achievement
3. Prioritize Goals and Tasks
- Is about ordering objectives in terms of their importance. The tasks deemed
most important will theoretically be approached and completed first
4. Create Assignments and Timelines
- establish timelines for completing associated tasks and assign individuals to
complete them. This portion of the management planning process should consider the
abilities of staff members and the time necessary to realistically complete
assignments.

PLANNING PROCESS IN MANAGEMENT

5. Establish Evaluation Methods

- A strategy for evaluating the progress toward goal completion throughout an
established time period.
6. Identify Alternative Courses of Action
- A management plan should include a contingency plan if certain aspects of the
master plan prove to be unattainable. Alternative courses of action can be incorporated
into each segment of the planning process, or for the plan in its entirety.

BUSINESS STRATEGIC PLANNING: STRATEGIC, TACTICAL,

AND OPERATIONAL PLANS
1. Strategic Plan
A strategic plan is a high-level overview of the entire business, its vision,
objectives, and value. This plan is the foundational basis of the organization and
will dictate decisions in the long-term. The scope of the plan can be two, three,
five, or even ten years.

Vision

Objectives

value

LEVELS OF STRATEGIC PLANNING

Focus

Time
Specificity Participants

Horizon

Corporate To develop a mix of

Broad
strategy
business units that meets
the companys long-term
growth and profitability
goals

Board of directors
510 years
Top-level executives

Business
strategy

Top-level executives 15 years

Managers within the
corporate
business unit

Functional To develop action plans

Very specific
strategy
that ensure that corporate
managers
and business strategies
are implemented

To develop and maintain More specific

a distinctive competitive than the
advantage that will ensure
long-term profitability
strategy

Middle-level managers
12 years
Lower-level

BUSINESS STRATEGIC PLANNING: STRATEGIC, TACTICAL,

AND OPERATIONAL PLANS
2. Tactical Plan
Describes the tactics the organization plans to use to achieve the ambitions
outlined in the strategic plan. It is a short range (i.e. with a scope of less than one
year), low-level document that breaks down the broader mission statements into
smaller, actionable chunks.

Specific Goals with Fixed Deadline

Budgets

Resources

Marketing, Funding, etc.

BUSINESS STRATEGIC PLANNING: STRATEGIC, TACTICAL,

AND OPERATIONAL PLANS

3. Operational Plan

A strategic plan is a high-level overview of the entire business, its vision,

objectives, and value. This plan is the foundational basis of the organization and
will dictate decisions in the long-term. The scope of the plan can be two, three,
five, or even ten years.

Single Use Plans

Ongoing Plans

ORGANIZING

WHAT IS ORGANIZING?

Organizing is the process of

determining:

The tasks to be done.

Who will do them.

How those tasks will be managed

and coordinated.

DEFINITION
it

is the process of identifying and

grouping of the works to be performed,
defining and delegating responsibility
and authority and establishing
relationships for the purpose of enabling
people to work most efficiently
Louis A. Allen

FUNCTION OF ORGANIZING
Determination

of the activities to be

performed
Creation of departments, sections and
positions to perform those activities
Establishing relationships among the various
parts of an organisation

PROCESS OF ORGANISING

ORGANIZATIONAL RELATIONSHIPS
The

working relationships that exist within an

organization affect how its activities are
accomplished and coordinated.
These relationships are defined by:
Chain

of command

Span

of control

Line

and staff responsibilities

Delegation

 Chain
o

Unbroken line of authority that links all persons in

an organization

Span
o

of command

of control

The number of employees reporting to a particular

manager.

 Line
o

and staff responsibilities

Line Departments
Individuals in management positions have the formal
power to direct and control immediate subordinates
Staff Departments
Granted to staff specialists in their area of
expertise

Delegation
o
o

Process managers use to transfer authority and

responsibility
Organizations encourage managers to delegate
authority to lowest possible level

TECHNIQUES FOR DELEGATION

Give
thorough
instruction
s

Maintain
feedback

Evaluate and
reward
performance

Techniques for Delegation

Delegate the
whole task
36

Ensure that
authority equals
responsibility

Select the
right person

ELEMENTS OF DELEGATION
Authority
o
o

Formal and legitimate right of a manager to

make decisions and issue orders
Allocate resources to achieve organizationally
desired outcomes

Responsibility
o
o

The duty to perform the task or activity an

employee has been assigned
Managers are assigned authority commensurate
with responsibility

ELEMENTS OF DELEGATION
Accountability
o

Mechanism through which authority and

responsibility are brought into alignment

People are subject to reporting and

justifying task outcomes to those above
them in the chain of command

Can be built into the organization

structure

LEADING

LEADER
The person who leads or commands a group, organization, or
country.
A leader is "a person who influences a group of people towards the
achievement of a goal".

ROLE OF LEADER
1.Communicator:

The most effective leaders use all levels of communication to reach

out to staff, customers/clients and other stakeholders.
They proactively encourage the exchange of information within the
organization.
Successful leaders have also developed the skill of actively listening
to others, including those with opposing views.
They carefully and thoughtfully make course corrections as the need
arises.

2. Thinker
Strategic thinking requires that an effective leader do the following:
understand how the different functions of the organization work together
and how it can best respond to external and internal changes;
learn the strengths and weaknesses of the organization, and the opportunities
and threats facing it;
understand how the strategic objectives are influenced by current and future
business and economic forecasts;
be aware of and respond to the behavior of current and potential competitors.

3. Decision-maker

In making important decisions and prior to implementation, the leader

must consider the impact of such choices on all stakeholders.

help the organization to identify current and potential problems.

It will also provide the platform on which to study a range of
solutions before selecting the final one, thus making sure that the
selected decisions fit within organizations mission and goals.

Planning, organizing,
setting objectives
Persuading & Motivating :
creating enthuasim to
make things happen

Clarifying the
problem & making
logical decision

Listsening, supporting
and giving constructive
critism

Accepting responsibility
for mistakes & wrong
decision

Leadership
Skills

Delegating task to
people with the right
skill set

Persevering when
things arent working
out

Positive attitude and

learn from failure

MOTIVATING

Using incentives, persuasion, and mental or physical stimulants to

influence the way people think or behave individually or in groups.
Process that account for an individuals intensity, direction and
persistence of effort toward attaining a goal

WILLINGNESS TO EXERT HIGH LEVEL OF EFFORT +

INDIVIDUALS ABILITY
= GOALS + SATISFY INDIVIDUALS NEEDS

CONTROLLING

ESTABLISHING STANDARDS
TO MEASURE PERFORMANCE

Measuring

actual performance

Comparing

standard

performance with the

Taking

corrective action

MANAGERIAL LEVEL

DEFINITION
Refer

to a line of demarcation between various

managerial positions in organization.
Number of Level Increase when the size of business
and work force increase and vice versa.
The level of management determines a chain in
command, the amount of authority & status enjoyed
by any managerial position

LEVELS OF MANAGEMENT
1.

Top level / Administrative level

2.

Middle level / Executory

3.

Low level / Supervisory / Operative /

First-line managers

LEVELS OF MANAGEMENT
Fig 6.1 : Managerial Levels

LEVELS OF MANAGEMENT
1.

Top Level of Management

The

top management is the ultimate source of authority and

it manages goals and policies for an enterprise. It devotes
more time on planning and coordinating functions.

Titles
a)
b)
c)
d)
e)

on Top level management

Chairman
President
Vice President
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)

1.

TOP LEVEL OF MANAGEMENT

The role of the top management can be summarized as follows a) Top management lays down the objectives and broad policies of the
enterprise.
b) It issues necessary instructions for preparation of department
budgets, procedures, schedules etc.
c) It prepares strategic plans & policies for the enterprise.
d) It appoints the executive for middle level i.e. departmental managers.
e) It controls & coordinates the activities of all the departments.
f) It is also responsible for maintaining a contact with the outside world.
g) It provides guidance and direction.
h) The top management is also responsible towards the shareholders for
the performance of the enterprise.

LEVELS OF MANAGEMENT
2. Middle

Level of Management
In small organization, there is only one layer of middle level
of management but in big enterprises, there may be senior
and junior middle level management. They are responsible to
the top management for the functioning of their
department. They devote more time to organizational and
directional functions.
Titles

on Middle level of management

a) Head of Departments
b) Divisional Heads
c) Branch Manager

2.

MIDDLE LEVEL OF MANAGEMENT

Their role can be emphasized as a) They execute the plans of the organization in accordance with the policies
and directives of the top management.
b) They make plans for the sub-units of the organization.
c) They participate in employment & training of lower level management.
d) They interpret and explain policies from top level management to lower level.
e) They are responsible for coordinating the activities within the division or
department.
f) It also sends important reports and other important data to top level
management.
g) They evaluate performance of junior managers.
h) They are also responsible for inspiring lower level managers towards better
performance.

LEVELS OF MANAGEMENT
3. Lower

Level of Management

Supervisory

management refers to those executives whose

work has to be largely with personal oversight and direction
of operative employees(R.C. Davis). In other words, they are
concerned with direction and controlling function of
management.
Titles on Lower level of management
a) Supervisors
b) Foreman
c) section officers
d) superintendent

3.

LOWER LEVEL OF MANAGEMENT

Their activities include a)

Assigning of jobs and tasks to various workers.

b)

They guide and instruct workers for day to day activities.

c)

They are responsible for the quality as well as quantity of production.

d)

They are also entrusted with the responsibility of maintaining good relation in the organization.

e)

They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level
goals and objectives to the workers.

f)

They help to solve the grievances of the workers.

g)

They supervise & guide the sub-ordinates.

h)

They are responsible for providing training to the workers.

i)

They arrange necessary materials, machines, tools etc for getting the things done.

j)

They prepare periodical reports about the performance of the workers.

k)

They ensure discipline in the enterprise.

l)

They motivate workers.

m) They

are the image builders of the enterprise because they are in direct contact with the workers.