Amirul Bin Abd Rashid

Faculty of Mechanical Engineering,

University Teknologi MARA.
 "Management is the
coordination of all resources
through the process of
planning, organising,
directing and controlling in
order to attain stated goals."
 Planning is considered to be the central function of management because it
sets the pattern for the other activities to follow.

 "Planning means defining goals for future organizational performance and

deciding on the tasks and use of resources needed to attain them" (Richard
Daft).

 Planning encompasses four elements:

1. Evaluating environmental forces and organizational resources
2. Establishing a set of organizational goals
3. Developing strategies and plans to achieve the stated goals
4. Formulating a decision-making process

 These elements are concerned with organizational success in the near

future as well as success in the more distant future.

 Planning to the future, the manager develops a strategy for getting there.
This process is referred to as strategic planning.
 Organizing is the managerial function of making sure there are
available the resources to carry out a plan.

 "Organizing involves the assignment of tasks, the grouping of tasks

into departments, and the allocation of resources to departments"
(Richard Daft)

 �Managers must bring together individuals and tasks to make

effective use of people and resources. Three elements are essential
to organizing:

 Developing the structure of the organization

 Acquiring and training human resources
 EEstablishing communication patterns and networks
 Determining the method of grouping these activities and
resources is the organizing process.
 Leading is another of the basic function within the management
process

 "Leading is the use of influence to motivate employees to achieve

organizational goals" (Richard Daft).

 �Managers must be able to make employees want to participate in

achieving an organization's goals. Three components make up the
leading function:
 Motivating employees
 Influencing employees
 Forming effective groups.

 The leading process helps the organization move toward goal

attainment.
The final phase of the management process is controlling.

"Controlling means monitoring employees' activities, determining whether

the organization is on target toward its goals, and making correction as
necessary (Richard Daft ).

Controlling ensures that, through effective leading, what has been planned
and organized to take place has in fact taken place. Three basic components
constitute the control function:
 Elements of a control system
 Evaluating and rewarding employee performance
 Controlling financial, informational, and physical resources.

Controlling is ongoing process. An affective control function determines

whether the organization is on target toward its goals and makes corrections as
necessary.

These all managerial functions are necessary and are related and interrelated
to each other.
 Most people think of three basic levels of management: top, middle, and first-line
managers.

 Top managers are responsible for the overall direction and operations of an
organization. Particularly, they are responsible for setting organizational goals,
defining strategies for achieving them, monitoring and implementing the
external environment, decisions that affect entire organization. They have
such titles as chief executive officer (CEO), president, chairman, division
president, and executive vice-president. Managers in these positions are
responsible for interacting with representatives of the external environment
(e.g., important customers, financial institutions, and governmental figures)
and establishing objectives, policies, and strategies.

 Middle managers are responsible for business units and major departments.
Examples of middle managers are department head, division head, and
director of the research lab. The responsibilities of middle managers include
translating executive orders into operation, implementing plans, and directly
supervising lower-level managers. Middle managers typically have two or
more management levels beneath them. They receive overall strategies and
policies from top managers and the translate them into specific objective and
programs for first-line managers.
 First-line managers are directly responsible for the production of goods and
services. Particularly, they are responsible for directing nonsupervisory
employees. First-line managers are variously called office manager, section chief,
line manager, supervisor.
 Management is needed in all types of organized activities. Moreover, management
principles are applicable to all types of organizations, including profit-seeking
organizations (industrial firms, banks, insurance companies, small business, etc.)
and not-for-profit organizations (governmental organizations, health care
organizations. educations organizations, churches, etc.).

 Any group of two or more people working to achieve a goal and having resources at
its disposal is engaged in management. Obviously, a manager's job is somewhat
different in different types of organizations, exists in unique environments, and uses
different technology.

 However, all organizations need the common basic activities: planning, organizing,
leading, and controlling.

 Management is also universal in that it uses a systematic body of knowledge

including economics, sociology, and laws. This knowledge can be applied to all
organizations, whether business, or government, or religious, and it is applicable at
all levels of management in same organizations.
 Mintzberg's observations and research indicate that diverse
manager activities can be organized into ten roles.

 �For an important starting point, all ten rules are vested with
formal authority over an organizational unit. From formal
authority comes status, which leads to various interpersonal
relations, and from these comes access to information, which,
in turn, enables the manager to make decisions and strategies.

 The ten roles are divided into three categories: interpersonal,

informational, and decisional.
 �Three of the managers's roles involve basic interpersonal relationships: �

�* The figurehead role. Every manager must perform some duties of a

ceremonial nature (e.g., the president greets the touring dignitaries, the sales
manager� takes an important customer to lunch). These� activities are
important to the smooth functioning of an organization.

�* The leader role. This role involves leadership� directly (e.g., the manager is
responsible for� hiring an training his own staff). The leader role
encompasses relationships with subordinates,� including motivation,
communication, and influence.

�* The liaison role, in which the manager makes� contacts inside and outside
the organization with a wide range of people: subordinates, clients,� business
associates, government, trade� organization officials, and so on.
 �The processing of information is a key part of the manager's job. Three
roles describe the informational aspects of managerial work:

�* The monitor role. This role involves seeking� current information from
many sources. For example, the manager perpetually scans his
environment for information, interrogates liaison contacts and
subordinates and receives unsolicited information.

�* The disseminator role In their disseminator role, managers pass

information to other, both inside and outside the organization.

�* The spokesperson role. In their spokesman role, managers send some of

their information to people outside the organization about company
policies, needs, actions, or plans.
 �The manager plays the major role in his unit's decision-making system.
Four roles describe the decisional aspects of managerial work:

�* The entrepreneur role. In his entrepreneur role,� managers search for

improvement his unit to adopt it to changing conditions in the environment.

�* The disturbance handler role. This role involves responding to high-pressure

disturbances. For example, manager must resolve conflicts among
subordinates or between manager's department and other departments.

�* The resource allocator role. In their resource� allocator role, managers

make decisions about how to allocate people, budget, equipment, time and
other resources to attain desired outcomes.

�* The negotiator role. The negotiations are duties of the manager's job. These
activities involve formal negotiations and bargaining to attain outcomes for
the manager's unit responsibility.
These ten roles are not easily separate: "No role can be pulled out of the
framework and the job be left intact". However, this description of
managerial work should be important to managers: "...the managers'
effectiveness is significantly influenced by their insight into their own work"
(L. Gulick).
 The best response to the question of whether management is an art or a
science is that it is both. �

 Managing, like all other practices (e.g., music composition, medicine, or

even tennis) is an art. To manage effectively, peoples must have not only
the necessary abilities to lead but also a set of critical skills acquired
through time, experience, and practice. If we define art as a personal
aptitude or skill, then management has certain artistic components.

 On the other hand, the organized knowledge underlying the practice may
be referred to as a science.�To perform at high levels in a variety of
situations, managers must be able to draw on the sciences - particularly
economics, sociology, mathematics, political science, psychology, and
political science - for assistance and guidance.

 The tasks of modern managers require the use of techniques, practices,

and skills. In this context science and art not mutually exclusive but
complementary.
 There are many definitions of the term organization. In an early definition Chester
Bernard labeled it "a system of consciously coordinated activities of two or more
persons." �

 Hari Das said, that "an organization is an abstract social entity." Social entity is "a
structured group of two or more people brought together to achieve certain
objectives".

 According to Howard E. Aldrich, "An organization can be conceptualized as a

collection of individuals deliberately structured within identifiable boundaries to
achieve predetermined goals."

 All formal organizations use specific knowledge (or technology) to perform work-
related activities.

 These features are visible in most organizations. In general, formal organizations

are the means by which we produce and supply a variety of goods and services.
An organizational structure defines how activities such as task
allocation, coordination and supervision are directed toward the
achievement of organizational aims. It can also be considered as the
viewing glass or perspective through which individuals see
their organization and its environment.
 "Organizational goals are desired states of affairs or preferred results that
organizations attempt to realize and achieve" (Amitai Etzioni).

 Charles Perrow has identified the following types of organizational goals:

Officials goals. These goals are the formally stated goals of an organization
described in its charter and annual reports and they are emphasized in
public statements by key executives.

�* Operative goals are the outcomes that the� organization actually seeks to
attain through its operating policies and activities.

* Operational goals Organizational goals define the performance objectives and

desired behaviours within an organization.
 However, a typical social organization today has multiple stakeholders-
groups of people, and consequently has multiple goals, which, at times,
may be mutually conflicting.According to Perrow, multiple organizational
goals can be classified into four major categories: �

�* Output goals. These goals are the "end product," such as consumer
products, services, health care, or education.
�* System goals. System goals relate to the� organization itself, and they
consist of such things as growth, stability, profit, efficiency, market share.
�* Product goals. Product goals consist of the� characteristics of the goods
or services, such as quality, styling, uniqueness, variety, and price.
* Derived goals refer to the way an organization uses its power and influence
to achieve other social or political goals (such as employee welfare,
community services, or political aims).
 Henry Minztberg has provided a different classification of goals:

�* System goals. There are four system goals: survival, efficiency, control,
and growth.

�* Formal goals. Formal goals are used by managers to tell everyone what
they are doing.

�* Ideological goals. These goals are what the people within the
organization believe in.

�* Shared personal goals. These goals are what people within the
organization come together to accomplish for their mutual benefit.
For most organizations, goals are constantly changing and members of the
organizations must respond appropriately, by formulating new goals as
well as deciding which goals will be accomplished, and in what order.
 The organization is where resources come together.

 Organizations use different resources to accomplish goals.

 The major resources used by organizations are often described

as follow:
 (1) human resources,
 (2) financial resources,
 (3) physical resources, and
 (4) information resources.

 Managers are responsible for acquiring and managing the

resources to accomplish goals.
 The performance is a global concept the represents the results of human
activities.

 Organizational performance is "the way in which an organization tries to be

effective" (Ricky W. Griffin). An organizations's performance can be measured in
many different ways.

 The most common ways are in terms of efficiency or effectiveness.

"Performance, ... is the attainment of organizational goals by using resources
in an efficient and effective manner" (Richard Daft).

 Effectiveness and efficiency is viewed as subcomponets of performance. �As

Peter Drucker has stated, efficiency means "doing things right," and
effectiveness means "doing the right things."�
 The more complete definitions are that: "organizational efficiency refers
to the amount of resources used to achieve an organizational goal", and
"organizational effectiveness is the degree to which organization achieves
a stated objective"(Richard Daft).

 The more resources wasted during the production process, the more
inefficient the manager. If organizations are using their resources to attain
their goals, the managers are effective.

 Finally, "productivity is the level of output of goods and services achieved

by the resources of an organization" (Ricky W. Griffin) Effectiveness,
efficiency, performance, and productivity are all important concepts for
managers and organizations.

 Managers must be both effective and efficient. Particularly, effectiveness is

the secret of success for any organization. For managers "The pertinent
questions is not how to do things right, but how to find the right things to
do and, to concentrate resources and efforts on them" (Ricky W. Griffin).
 Andrew D. Szilagyi developed a framework for performance for managers to
carefully consider it attempting to achieve organizational goals:

 Performance is not single standard, but consists of multiple criteria. The

level of analysis of performance ranges from the individual employee to the
user of the� organization's products and services, and on to society in
general.

 The focus of performance can concern maintenance, improvement, and

developmental goals. The time frame for performance, from short term to
long term, must be established. How performance will be measured, ranging
from� quantitative/objective to qualitative/subjective measures, should be
considered.

 Ricky W. Griffin proposed a more detailed model that related performance,

effectiveness and productivity. This framework can help managers monitor all of
their activities and successfully carry out the control function at the
organizational level.
 Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different
entities such as the branch, department, workgroup and
individual.

 Organizational structure affects organizational action in two big

ways:

• It provides the foundation on which standard operating

procedures and routines rest.

• It determines which individuals get to participate in which

decision-making processes, and thus to what extent their views
shape the organization’s actions.
 Labor Planning
 Employment-Stability Policies
 Work Schedules
 Job Classifications and Work Rules
 Job Design
 Labor Specialization
 Job Expansion
 Psychological Components of Job Design
 Self-Directed Teams
 Motivation and Incentive Systems

 Ergonomics and Work Methods

 Methods Analysis
 The Visual Workplace
 Labor Standards
 The objective of a human resource
strategy is to manage labor and design
jobs so people are effectively and
efficiently utilized

1. People should be effectively utilized within the

constraints of other operations management
decisions
2. People should have a reasonable quality of work
life in an atmosphere of mutual commitment and
trust
Product strategy Process strategy
• Skills needed • Technology
• Talents needed • Machinery and
• Materials used equipment used
• Safety • Safety

Schedules Individual differences

• Time of day When Who • Strength and fatigue
• Time of year
HUMAN • Information
(seasonal) RESOURCE processing and
• Stability of STRATEGY response
schedules

Location strategy Layout strategy

• Climate • Fixed position
• Temperature • Process
• Noise • Assembly line
• Light • Work cell
• Air quality • Product
Figure 10.1
1. Labor Planning :
o Employment Stability
o Work Schedule
o Work Rules

2. Job Design:
o Job Specialization
o Job Expansion
o Psychological Component
o Self direct team
o Motivation and incentive systems
 Ergonomics & Work Environment

3. Labor Standards:
o Historical Experience
o Time Studies
o Pre-determined time standards
o Work Sampling
Employment Stability Policies
Follow demand exactly
 Matches direct labor costs to production
 Incurs costs in hiring and termination,
unemployment insurance, and premium
wages
 Labor is treated as a variable cost
Employment Stability Policies
Hold employment constant
 Maintains trained workforce
 Minimizes hiring, termination, and
unemployment costs
 Employees may be underutilized during
slack periods
 Labor is treated as a fixed cost
Work Schedules
 Standard work schedule
 Five eight-hour days

 Flex-time
 Allows employees, within limits, to determine their own
schedules

 Flexible work week

 Fewer but longer days

 Part-time
 Fewer, possibly irregular, hours
 Specifying the tasks that constitute a
job for an individual or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems
Jobs should include the following
characteristics

 Skill variety
 Job identity
 Job significance
 Autonomy
 Feedback
 Self-directed
teams
Increasing
Empowerment reliance on
employee’s
Enrichment contribution
and increasing
Enlargement
responsibility
accepted by
Specialization employee

Job expansion
 Fairness, equity, and ethics are important
constraints of job design
 Important issues may relate to equal
opportunity, equal pay for equal work, and
safe working conditions
 Helpful to work with government agencies,
trade unions, insurers, and employees
 The amounts of time required to perform a
job or part of the job
 Modern Labor Standards Originated with
the work of Frederick W. Taylor and Frank
& Lillian Gilberth during 20th century.
 Effective operations requires
meaningful standards that help firm
to determine:
• Labor content of items produced
• Staffing needs
• Cost and time estimates
• Crew size and work balance
• Expected production
• Basis of wage incentive
• Efficiency of employees and supervision
 Historical experience
 Time Studies
 Predetermined time standards
 Work Sampling
 Ergonomics is the study of the
interface between man and
machine
 Often called
human factors
 Operator input
to machines
 Feedback to operators
 The work environment
 Illumination
 Noise
 Temperature
 Humidity
Figure 10.4
Task Condition Type of Task Illumination Type of
or Area Level Illumination
Small detail, Sewing, inspecting 100 Overhead
extreme dark materials ceiling lights
accuracy and desk lamp
Normal detail, Reading, parts 20-50 Overhead
prolonged assembly, ceiling lights
periods general office
work
Good contrast, Recreational 5-10 Overhead
fairly large facilities ceiling lights
objects
Large objects Restaurants, 2-5 Overhead
stairways, ceiling lights
warehouses

Table 10.2
 Environment Common Noise
Noises Sources Decibels
Jet takeoff (200 ft) 120
|
Electric furnace area Pneumatic hammer 100 Very annoying
|
Printing press plant Subway train (20 ft) 90
|
Pneumatic drill (50 ft) 80 Ear protection
Inside sports car (50 mph) | required if
Vacuum cleaner (10 ft) 70 exposed for 8
Near freeway (auto traffic) Speech (1 ft) | or more hours
60 Intrusive
Private business office |
Light traffic (100 ft) Large transformer (200 ft) 50 Quiet
|
Minimum levels, Chicago 40
residential areas at night Soft whisper (5 ft) |
Studio (speech) 30 Very quiet

Table 10.3
 Bonuses - cash or stock options
 Profit-sharing - profits for distribution to
employees
 Gain sharing - rewards for improvements
 Incentive plans - typically based on
production rates
 Knowledge-based systems - reward for
knowledge or skills
What Is Misconduct in the Workplace?

” behaviors you consider unacceptable

within your organization”
 Language
• Using profane, violent or vulgar includes inappropriate jokes and
jesting.
 Actions
• Physically touching another employee in the workplace is a form of
misconduct.
 Relationships
• Fraternizing in the workplace is a form of misconduct, especially
when the fraternizing occurs between management and an entry-
level employee
 Insubordination
• When an employee willingly violates the request of upper
management, it is insubordination.
 Intoxication
• It is a form of misconduct for an employee to come to work
intoxicated or high on drugs, whether prescription or street drugs.
 Theft and Breaching Confidentiality
• Stealing physical & intellectual property from the company
understands the importance of confidentiality and the
consequences for violating the agreement.
 The Employment Act provides minimum
terms and conditions (mostly of monetary
value) to certain category of workers.

The Definition of "Employees"

(a) Any employee as long as his month wages is less than RM2000.00
and

(b) Any employee employed in manual work including artisan,

apprentice, transport operator, supervisors or overseers of manual
workers, persons employed on vessels and even domestic servants are
classified as employees even if their wages is more than RM2000.00 per
month.
Source : http://www.ilo.org/dyn/natlex/docs/WEBTEXT/48055/66265/E55mys01.htm