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CHAPTER SIX
Introduction to Management
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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LEARNING OUTCOMES
In this chapter, you will learn to:
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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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.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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ORGANIZATION
people who work together to achieve a common purpose. There are two types of organizations:
Profit-oriented Non-profit oriented
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MANAGERS IN ORGANIZATIONS
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MANAGERIAL LEVELS
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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Top-level managers Set the goals and provide the strategic directions for the organization. Accountable for the overall management of the organization.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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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
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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.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MANAGEMENT PROCESS
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MANAGEMENT FUNCTIONS Planning Planning involves setting appropriate and clear goals and objectives, and establishing appropriate strategies to accomplish them.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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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.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved
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Controlling Controlling is the process to ensure that performance is as planned and taking the necessary corrective actions/changes when needed.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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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.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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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.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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ORGANIZATIONAL STRUCTURE
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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FUNCTIONAL STRUCTURE
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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PRODUCT STRUCTURE
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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GEOGRAPHICAL STRUCTURE
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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CUSTOMER STRUCTURE
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MATRIX STRUCTURE
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MOTIVATING EMPLOYEES
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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Physiological needs Physiological needs are the most basic human needs such as food, shelter, clothing and water.
Safety needs These are the basic needs for a safety and security.
Belongingness needs Relate to the desire for social interaction, relationships and friendship with others.
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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MOTIVATORHYGIENE 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.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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EXPECTANCY THEORY
1. Expectancy The 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. Valence The attractiveness of outcomes as the result of effort and performance.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012
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