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STUDY GUIDE
BMOM5203
Organisation and Business
Management
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STUDY GUIDE BMOM5203 Organisation and Business Management
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STUDY GUIDE BMOM5203 Organisation and Business Management
Part One comprises the Course Introduction, which gives you an overview
of the course. More specifically, it provides you with the course synopsis,
objectives, learning outcomes and study load. There is a brief description of
the main textbook(s), which you must read to fulfil the course requirements.
There is also a list of additional reading references. You are encouraged to
go into myVLE to check out the assessment, assignment and final
examination formats.
Part Two comprises the Learning Guide. This starts with an overview, a
recommended weekly study schedule to guide your learning process, and a
brief description of the various elements in the Learning Guide. There is also
a list of topics to be covered. For each topic, you are given the specific
learning outcomes, a topic overview and a listing of the focus areas, together
with assigned readings and the pages where information on the focus areas
is found. To consolidate your learning and test your understanding, a
summary of the main content covered and study questions are provided at
the end of each topic.
Finally, there are two appendices, Learning Support and Study Tips, to
help you walk through the course successfully.
Please read through this Study Guide before you commence your course.
We wish you a pleasant study experience.
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STUDY GUIDE BMOM5203 Organisation and Business Management
Contents
Part One: Course Introduction ................................................................... 5
Synopsis ............................................................................................ 5
Objectives .......................................................................................... 5
Learning Outcomes ........................................................................... 5
Study Load ......................................................................................... 5
Main Textbook(s) .............................................................................. 6
Assigned Readings ............................................................................ 6
Additional Recommended Readings.................................................. 6
Assessment ....................................................................................... 6
Appendices ................................................................................................ 55
Appendix A: Learning Support ......................................................... 55
Appendix B: Study Tips ................................................................... 56
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STUDY GUIDE BMOM5203 Organisation and Business Management
Synopsis
Objectives
Learning Outcomes
Study Load
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STUDY GUIDE BMOM5203 Organisation and Business Management
Main Textbook(s)
Bateman, T. S., & Snell, S. A. (2013). Management (10th ed.). New York:
McGraw Hill.
Assigned Readings
Certo, S. C., & Certo, S. T. Modern management (12th ed.). New Jersey:
Pearson Prentice Hall.
Robbins, S. P., & Coulter, M. (2005). Management (8th ed.). New Jersey:
Pearson Prentice Hall.
Williams, C. (2009). Principles of management. (6th ed.). Ohio: South-
Western Cengage Learning.
None.
Assessment
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STUDY GUIDE BMOM5203 Organisation and Business Management
An Overview
Topic Week
Topic 1: Foundations of Management 1
Topic 2: Planning 2
Topic 3: Ethics and Corporate Social Responsibility 3
Topic 4: Organising 4
Topic 5: Human Resource Management 5
Topic 6: Communication 6
Topic 7: Leadership 7
Topic 8: Motivation 8
Topic 9: Teamwork 9
Topic 10: Control 10
Each topic in the Learning Guide comprises the following sections (refer to
Figure 1):
Learning Outcomes: outline the specific tasks to be accomplished;
Topic Overview: briefly explains what the topic touches on so as to
provide a general interpretative framework for understanding the topic
content;
Focus Areas: identify the main and sub areas to be covered;
Assigned Readings: help you to navigate the set textbook and reading
materials;
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STUDY GUIDE BMOM5203 Organisation and Business Management
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STUDY GUIDE BMOM5203 Organisation and Business Management
Learning Outcomes
Topic Overview
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STUDY GUIDE BMOM5203 Organisation and Business Management
Extra Readings:
Prahalad, C.K. Responsible Manager in
Harvard Business Review, Jan/Feb 2010, Vol
88, Issue , p. 36.
Content Summary
The evolution of management began about a century ago, around the time
when new mechanised technology and mass production in the Industrial
Revolution presented challenges which needed to be tackled through
scientific methods. During those hundred-odd years, there was further
evolution in management to accommodate major socio-economic changes
the world over. Today, the challenges to management are brought about by
globalisation, technological change and knowledge management. Managers
must have the foresight and skill to face this new environment in order for
their organisation to survive and compete.
The process of management has not changed much. The four basic
management functions that make up the process are planning, organising,
leading and controlling. The definitions are as follows:
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STUDY GUIDE BMOM5203 Organisation and Business Management
The management levels, as outlined below, have also not changed much:
(a) Top level managers are senior executives of the organisation who are
responsible for its overall management.
(b) The middle level managers are located in the organisations hierarchy
below the top level management and above the frontline managers.
(c) The frontline managers are lower level managers who supervise the
operations of the organisation. These managers have titles like
supervisor or chief clerk.
Managers also need a variety of skills to perform their tasks well. The three
categories of skills are as follows:
(a) Technical skill The ability to perform a specialised task involving a
particular method or process. On a sliding scale, the frontline managers
need more of this skill, with the top managers least.
(b) Interpersonal and communication skill People skill; the ability to lead,
motivate, and communicate effectively with others. All the three levels
of managers need this skill especially the top.
Conceptual and decision skill Skills pertaining to the ability to identify and
resolve problems for the benefit of the organisation and its members. All
levels of managers need this skill especially the top.
(Bateman & Snell, 2013)
Organisations that keep up with the times with sound policies and have
competitive edge in quality and cost will perform well consistently. The
authoritative Fortune 500 contains this elite group. Among them are Apple,
Occidental Petroleum, Facebook, Siemens, Toyota and Samsung. In the
case of Malaysia, elite companies include Petronas (which is on the 500 list)
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Sime Darby, Genting, Public Bank and Maybank. In these examples, all are
led by outstanding CEOs.
Study Questions
3. The Inland Revenue Board (IRB) of Malaysia has been awarded the
Best Public Agency for several years successively. Discuss this
agency according to Bateman& Snells drivers of performance for
competitive advantage.
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STUDY GUIDE BMOM5203 Organisation and Business Management
Topic 2: Planning
Learning Outcomes
Topic Overview
The topic begins with the need to identify the objectives of the organisation
and make plans to achieve them. There are three levels of planning, namely,
strategic, tactical, and operational which have to be aligned. Strategic
planning is more for the long term of the organisation. Environmental and
internal analyses have to first be carried out, followed by threats and
opportunities assessments, before formulating the strategies and
implementing them. All these planning and strategies require sound and
rational decisions. Decision making is at the heart of the managers job. It is
therefore his responsibility to make them. Nevertheless, there are process,
tools and techniques to assist managers in decision making.
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STUDY GUIDE BMOM5203 Organisation and Business Management
Extra Readings:
David, F. (2009). Strategic management:
Concepts and cases (12th ed.). Pearson
Prentice Hall.
Content Summary
Planning can be divided into short, medium and long term. It ranges from
one year for the short, to five years for the long term. An example of a short
term plan would be argeting to achieve good examination performance by a
school in the coming year. To achieve this target, the school has to rely on
available resources such as facilities, financial, teaching staff and the
students themselves. A long term plan would be to achieve a consistent high
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The planning was therefore to build a dam in Kedah, the nations rice bowl
area. This took a few years to complete but was accelerated with financial
assistance and expertise from the World Bank. While waiting for the dam,
immediate assistance was given to the farmers through the introduction of
policies of fertiliser subsidy and minimum price guarantee for paddy.
Planning for mechanization was also short term through the assistance of
Thailand and Taiwan, the leading producers of the crop. A research agency
was set up to find the best variety of paddy which was assisted through
collaboration with the Philippines Los Banyos Research Institute, famous for
discovering Miracle Rice. In retrospect, the availability of the dam was
mainly responsible for the double cropping of rice in the countrys rice bowl,
a proud achievement a few years after Merdeka. Other long standing
problems such as land ownership and the uneconomic size of smallholding
would require land reform, which would involve more comprehensive
planning and strategies.
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STUDY GUIDE BMOM5203 Organisation and Business Management
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As can be seen, all the planning above requires sound and rational
decisions. Decision making is at the heart of a managers job. A good
decision will help to achieve the organisations objective while a bad one will
have a negative effect.
Let us take an example of decision making, this time the new Kuala Lumpur
International Airport (KLIA) based on Batemans decision making steps:
(a) Problem
By the mid-1980s, the existing national airport at Subang had reached
its capacity, which affected business, travel and the countrys
development.
(d) Decision
Alternative (ii) was chosen, costs more but less people displacement,
and within Selangor & Kuala Lumpur.
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Study Questions
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Learning Outcomes
Topic Overview
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Content Summary
Many organisations have code of ethics. Johnson & Johnson (J&J) has one
of the best declaration of its oath to stakeholders, the public and society.
True enough, when one its product, the aspirin Tolinol, was found to be toxic,
the company made a public disclosure and recalled the product. J&J lost a
few million dollars in the recall but received goodwill and eventually it
overcame the losses by having more profit. Toyota has been the best auto
manufacturer almost year after year from 1980s not only due to the quality of
its cars but also because of its adherence to its declared ethics, among
them, by disclosing any defects and recall, when necessary. The same thing
could not be said about Ford in its dealing with its accident-prone jeep. Ford
passed the blame to the company contracted to make the tyres, Firestone.
The multinational Union Carbide was in similar category when its Indian
company leaked poisonous gas that killed hundreds in the 1980s.
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The business community all over appear to counter the campaigns against
them by highlighting their corporate social responsibility (CSR) activities.
CSR is the managerial obligation to take action that protects and improves
the welfare of society as a whole and the interests of the organisation.
(Certo, 2013). In the US and Western Europe, companies started CSR in the
aftermath of the Second World War.
There are many areas in which companies can contribute in CSR such as
environmental affairs like the Green Movement, urban affairs, consumer affairs,
and employment practices. In developing countries the CSR activities normally
relate to socio-economic, health and education for disadvantaged groups. In
Malaysia, CSR also include the development and promotion of sports.
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that organisations may help to improve quality of life as long as their actions
are directed at increasing profits.
(Bateman & Snell, 2013).
Study Questions
4. What are your arguments for and against the concept of CSR? Where
do you stand, and why?
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Topic 4: Organising
Learning Outcomes
Topic Overview
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Content Summary
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STUDY GUIDE BMOM5203 Organisation and Business Management
The other structure is the vertical which can be represented in the form of an
organisation chart which shows the chain of command with continuous line
of authority that extends from the upper organisational levels to the low
levels and clarifies who reports to whom. Three related concepts include
authority, responsibility, and unity of command.
A further concept from the chart or structure is the span of control which
refers to the number of subordinates a manager can supervise effectively
and efficiently. The ideal span of control depends on the skills and abilities of
the manager, the characteristics of the work being done, the tasks of the
employees, and proximity of subordinates. The trend in recent years has
been towards larger span of control.
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Study Questions
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Learning Outcomes
Topic Overview
Human resources are essential to any organisation and how these resources
are managed in a firm is a critical element in a companys pathway to
success. First the organisation must plan the human resource need of the
organisation. This is followed by the recruiting and selecting process. Many
organisations open the recruitment to internal as well as external candidates.
This is to ensure opportunities for career development is available to existing
staff at the same time that the organisation seeks fresh faces and ideas.
Selection is done by a panel normally through the interview process, a well-
tested way of getting the right candidate. These new employees have to be
trained. Training should be systematic and well-planned; it should span from
orientation to retraining for new skills or updating skills; and it should cover
all categories of staff. Training helps to improve staff performance, another
important function of HRM. Performance assessment (PA) should contain
key indices and must be done professionally and objectively by the
assessing panel. PA determines the compensation and benefits the
employee gets. The principle of a reward system is it should be attractive
enough for people to join as well as remain in the organisation. A reward
system ordinarily consists of salary and other monetary and non-monetary
elements.
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STUDY GUIDE BMOM5203 Organisation and Business Management
Content Summary
During tight labour market in the 1980s, some factories in Malaysia went to
the extent of walk-in interview and going to outlying areas to search for
workforce with the promise of providing transportation to place of work.
When the labour situation for these production workers continued to be tight,
Malaysia allowed the hiring of foreign labour from neighbouring countries.
In Malaysia the most stringent recruitment process has been into the
Malaysian Administrative and Diplomatic Service (PPTD) in which
candidates have to sit for two elimination tests before entering for interview.
The successful candidates will then undergo an academic year training to
get a Diploma in Administration. Only then is he/she will be officially
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The most stringent selection exercise was, however, for the first Malaysian
astronaut. Malaysia was offered by Russia a place in its team on the
expedition to the International Space Station after Malaysia bought a US$2
billion jet package. The requirements were for physically-fit candidates
having a first degree between the ages of 20 to 35 years old. 14,000 applied.
After passing a series of physical tests, 20 were selected for the final. They
appeared before a Panel of 3 Eminent Malaysians before one was selected.
Training is the next element of HRM. An organisation has to plan for the
training needs of its employees in terms of types of training and categories of
staff, and the budget, among others. Besides orientation for the new staff,
there are also other types of training for existing staff such as upgrading of
skills and learning new technology. There is a tendency among organisations
to cut back on training during an economic downturn, which should not be.
Instead, there are ways to cut down costs such as modifying the types of
lecture, having in-house trainers, and changing venue. Training should be
done to fulfil the organisation's needs but the trained employees should be
amply rewarded and placed for career development.
The reward system consists of salaries and other monetary and non-
monetary benefits. An organisation has to consider its capacity to pay the
standard in the industry, the minimum wage and other government
legislations. The reward system should be competitive so that candidates are
attracted to join the organisation and continue to remain in it. For many
corporations in the private sector, the compensation and benefits are done
through collective bargaining between management and the unions. The
period of the resulting contract will be two or three years. For the public
sector in Malaysia, the Government in 2012 is reverting to the pre-1980
practice of appointing a commission headed by a judge to examine salaries
and benefits. In between those years, the reward system is a management
prerogative in consultation with the civil service unions.
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Study Questions
5. How would you define an effective reward system? What role does
benefits serve in a reward system?
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Topic 6: Communication
Learning Outcomes
Topic Overview
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Content Summary
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Study Questions
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Topic 7: Leadership
Learning Outcomes
Topic Overview
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Extra Reading:
MarChapterionne, Sergio Fiat
Extreme Makeover in Harvard
Business Review, Dec 2008, Vol
86, Issue 12, pp. 45-48.
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Content Summary
Early studies on leadership focused first on the leader (trait theories)and how
the leader interacted with his or her group members (behavioural theories).
Stature, appearance and other physical traits were not determinants of
leadership. However, later studies show that successful leaders tend to
possess characteristics such as intelligence, academic achievements,
emotional maturity, integrity, job-relevant knowledge, persistence and a drive
for continuing achievement. These characteristics too were not sufficient to
be a leader.
The studies then focused on leader behaviour under different situations. This
situational approach to leadership is of the view that successful leadership
requires a unique combination of leaders, followers, and leadership
situations. The following are the main models:
From these forces, the leader makes decisions autocratically (in which
he makes the decision alone and announces it), or democratically (from
participative style, asking suggestions from subordinates, then he
decides, to permitting groups to make decisions within prescribed
limits).
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STUDY GUIDE BMOM5203 Organisation and Business Management
In general, the theory suggests that the functions of the leader are to:
(i) Make the path to work goals easier to travel by providing
coaching and direction
(ii) Reduce frustrating barriers to goal attainment, and
(iii) Increase opportunities for personal satisfaction by increasing
payoffs to people for achieving performance goals.
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Martin Luther King, Tunku Abdul Rahman, Lee Kuan Yew and Dr
Mahathir Mohamad.
(b) Transformational leadership Leaders who motivate people to
transcend their personal interests for the good of the organisation. Eg.,
Steve Jobs of Apple, Tony Fernandes of AirAsia, and Arshad Ayub, ex-
ITM Director .
(c) Transactional leaders leaders who manage through transactions,
using their legitimate, reward and coercive powers to give commands
and exchange rewards for services rendered. E.g., Idris Jala of MAS,
and Lim Kok Weng of LKW University College of Creative Technology.
(Bateman & Snell, 2013)
Study Questions
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Topic 8: Motivation
Learning Outcomes
Topic Overview
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STUDY GUIDE BMOM5203 Organisation and Business Management
Extra Readings:
Hughes, Liz Motivating Your
Employees in Women in Business,
Mar/Apr 2003,Vol 56, Issue 2, p.7.
Content Summary
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STUDY GUIDE BMOM5203 Organisation and Business Management
based on his past and current performance he can do it. The manager has to
inspire his subordinates through his interpersonal communication and
authority.
There is also the question of fairness in case the expectation is not realised.
This is in line with equity theory which states that people assess how fairly
they have been treated according to two key factors: outcomes and inputs.
Outcomes are various things one receives on the job such as pay and
benefits while inputs are ones contributions to the organisation like effort
and time. Unfairness will be felt by an employee when he perceives that the
two do not commensurate and worse when he compares his case with other
individuals. This is a major issue of dissatisfaction among employees in
many organisations. A manager has to detect this early and nip it in the bud
before it affects staff morale and motivation.
Expectation and equity come under the process theories of motivation which
emphasize how individuals are motivated. The second type is the content
theories which deal with peoples internal characteristics in motivation. These
are the needs theories which indicate the kinds of needs that people want to
satisfy. People have different needs motivating them towards different goals.
The extent to which and the ways in which a persons needs are met or not
met at work affects his behaviour on the job.
The most important theories describing the contents of peoples needs are
Maslows need hierarchy, Alderfers ERG Theory, and McClellands needs.
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The next set of motivation forces which a manager can apply to his
organisational members are related to the job. Among them are as follows:-
(b) Rewards
(i) Extrinsic reward Given directly by the company or boss like
cash bonus.
(ii) Intrinsic Reward a worker derives directly from performing the
job itself like compliments, recognition and self-satisfaction.
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Study Questions
1. Most of us have to work for a living, and a job is a central part of our
lives. So why do managers have to worry so much about employee
motivation issues?
4. Many job design experts who have studied the changing nature of work
say that people do their best work when they are motivated by a sense
of purpose rather than by the pursuit of money. Do you agree? Explain
your answer.
5. Read Concluding Case Big Bison Resorts: Finding the Key to What
Employees Value on pg. 499-500 of the textbook, and answer all the
questions.
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Topic 9: Teamwork
Learning Outcomes
Topic Overview
Over ninety percent of organisations now use teams to produce goods and
services, to manage projects, and to make decisions and run the company.
Teams can increase productivity, improve quality, and reduce costs. There
are also disadvantages like social loafing, and problems associated with
group decision making. However, the advantages far outweigh the
disadvantages. There are several types of teams. Among the primary ones
are work teams, project and development teams, management teams, self-
managed teams, and transnational teams. Teams are developed from
groups which become true teams via basic group processes, the passage of
time, and team development activities. Team effectiveness can be enhanced
through setting up goals and priorities, how team members are selected,
trained, and compensated.
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Content Summary
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STUDY GUIDE BMOM5203 Organisation and Business Management
There are several types of groups and teams in organisations but the
primary types are as follows:
(a) Work teams make or do things such as manufacture, assemble, sell, or
provide service.
(b) Project and development teams work on long-term projects, often over
a period of years.
(c) Management teams coordinate and provide directions to the sub-units
under their jurisdiction and integrate works among sub-units.
(d) Transnational teams are work teams composed of multinational
members whose activities span multiple countries. They tend to be
virtual teams, communicating electronically more often than face-to-
face.
(Bateman & Snell, 2013)
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STUDY GUIDE BMOM5203 Organisation and Business Management
Companies can make teams more effective by setting team goals and
managing how team members are selected, trained and compensated.
Team goals provide a clear focus and purpose, and lead to higher team
performance. Challenging tasks can be used to motivate teams as long as
teams have more autonomy and control over resources. Not everyone is
suited for teamwork. When selecting team members, companies should
select people who have preference for teamwork and team diversity. Proper
training should be provided to make sure that teams work. The most
common types of training are for interpersonal skills, decision-making and
problem-solving skills, conflict resolution, technical training to help team
members learn multiple jobs, and training for team leaders. Employees
should be compensated for team participation and accomplishment by
monetary and non-monetary rewards.
Study Questions
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STUDY GUIDE BMOM5203 Organisation and Business Management
Learning Outcomes
Topic Overview
Control is the process of monitoring activities to ensure that they are being
accomplished as planned and of correcting any significant deviations.
Control is therefore linked to planning, which some refer to as Siamese
twins. If plans are not carried out properly, management must takes steps to
correct the problem. This process is the primary control of management.
There are a number of control tools. Among them are management audits
consisting of external and internal audits, budget, and financial controls.
Organisations should have an effective control system which includes valid
performance standards, acceptable to employees, and use multiple
approaches.
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Content Summary
Control is any process that directs the activities of individuals towards the
achievement of organisational goals. It is how effective managers make sure
that activities are going as planned. Every individual employee in the
organisation has a role in controlling work activities. This is particularly in
organisations where employees have been empowered. But even in
organisations where employees have not been empowered, these
employees play a role in measuring, comparing, and correcting performance.
However, managers will be responsible for establishing the standards,
approaches, and guidelines for measuring, comparing, and correcting.
Besides the individual and the whole staff, managers must also control
inventories, quality, and costs, to mention just a few of their responsibilities.
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(b) Concurrent The control process while plans are being carried out,
such as the hours of teaching of subjects, the tests, academic
improvement, additional short training for teachers, regular PTA
meetings, and etc.
(c) Feedback Control on the use of information from previous results
such as previous exams, trial examinations, informed parents and
subject experts. These information will be used to correct the deviation
to improve the school performance.
There are a number of tools used for the control system. Among them are
the following:
(a) Management Audit An evaluation of the effectiveness and efficiency
of the various systems within an organisation. Management audit may
be external, such as CPA firm; or internal, which is an entity of the
organisation. Managers use both.
(b) Budgetary control One of the most widely recognised and commonly
used methods of managerial control. Budgetary control is the process
of finding out whats being done and comparing the results with the
corresponding budget data to verify accomplishment or remedy
differences.
(c) Financial controls The two commonly used financial statements are
Balance Sheet which shows the financial picture of the company at a
given time. The other is Profit and Loss Statement, an itemised
financial statement of the income and expenses of a companys
operations.
(d) Financial Ratios An effective approach used for checking on the
overall performance of an enterprise. The three categories of financial
ratios are liquidity, leverage, and profitability.
Study Questions
3. What are the pros and cons of bureaucratic controls such as rules,
procedures, and supervision?
4. Read Concluding Case The Grizzly Bear Lodge on pg. 598-599 of the
textbook, and answer all the questions.
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Appendices
Appendix A: Learning Support
Seminars
As you work on the activities and the assigned text(s), your facilitator will
provide assistance to you throughout the duration of the course. Should you
need assistance at any time, do not hesitate to contact your facilitator and
discuss your problems with him/her.
Bear in mind that communication is important for you to be able to get the
most out of this course. Therefore, you should, at all times, be in touch with
your facilitator, e-facilitator and coursemates, and be aware of all the
requirements for successful completion of the course.
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You should plan to spend about 12 hours of study time on each topic, which
includes doing all assigned readings and activities. You must also set aside
time to discuss work online. It is often more effective to distribute the study
hours over a number of days rather than spend a whole day studying one
topic.
Study Strategy
The following is a proposed strategy for working through the course. If you
have difficulty following this strategy, discuss your problems with your
facilitator either through the online forum or during the seminars.
(i) The most important step is to read the contents of this Study Guide
thoroughly.
(ii) Organise a study schedule (as recommended in Table 2). Take note of
the amount of time you spend on each topic as well as the dates for
submission of assignment(s), seminars and examination.
(iii) Once you have created a study schedule, make every effort to stick to
it. One reason learners are unable to cope with postgraduate courses
is that they procrastinate and delay completing their course work.
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(v) When you have completed a topic, review the Learning Outcomes for
the topic to confirm that you have achieved them and are able to do
what is required.
(vi) After completing all topics, review the Learning Outcomes of the course
to see if you have achieved them.
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