BASIC OF BUSINESS

MANAGEMENT

Maria MY PB201 Topic 4

INTRODUCTION TO MANAGEMENT
Every organization needs
to establish several goals
and objectives in order to
continue competing and
existing in the industry.

Management activities
can assist organizations
achieve these goals and
objectives.

Good management
practices are the key in
determining the success
or failure of an
organization.

Management practices
are the machines that
move an organization.

Maria MY PB201 Topic 4

Definition of Management
Management is the
process involves several

work activities and

functions that must be
followed and completed
by managers in order to
achieve organization
goals.

CERTO
(1997)

Management as a career
refers to the position or

rank of individuals holding

the designation of
managers in the various
levels of management
along their career
progression.

Management is defined as a
process to accomplish
organizational goals by working
with humans and other
organizational resources
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Maria MY PB201 Topic 4

Functions of Management

Planning

Organizing

Leading

Controlling

Maria MY PB201 Topic 4

PLANNING

Maria MY PB201 Topic 4

Planning
Planning is the
management.

first

process

of

The
planning
process
enables
other
management functions such as organizing
controlling, leading, and discussion making
to be performed in the organization.

Maria MY PB201 Topic 4

Planning is also defined as a

process whereby managers
form the organizational goals
and decide the most suitable
action to achieve the goals.
Planning is process of
managing all the individuals
involved in the organization
and the variables from the
internal and external
environment of the
organization to achieve the
set goals.
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Definition of Planning
Maria MY PB201 Topic 4

Strategic Planning

Tactical Planning

Operational Planning

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The Hierarchy of Planning

Mission
Goals

Strategic
Planning

Overall
Objective
Area Objectives

Tactical
Planning

Division Objectives
Department Objectives

Individual Objectives

Operational
Planning

Maria MY PB201 Topic 4

Strategic Planning
Involves setting long-term goals and objective for
an organization and selecting suitable actions to
allocate organizational resources in order to
achieve these goals.

Also known as long term planning is performed

by top line managers or strategic manager

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Maria MY PB201 Topic 4

Tactical Planning
Tactical planning
is performed by
middle-line
managers or
tactical managers
to achieve goals
set at the strategic
level.

This type of
planning involves
shorter period of
time.
E.g.: Between one
and five years.
Also known as midterm planning.

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Maria MY PB201 Topic 4

Operational Planning
Concentrates on the
development of specific
targets or goals.

This type planning provides

specific guidance on the
roles an the responsibilities
of the relevant parties in the
organization in achieving
operational goals.

This plan is develop and

determined by the first Line
Perform for a time duration of
managers or operational
one year or less also known
manager. Involves a small or
as short Term planning.
specific scope such as job
units or individual in the
organization
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Maria MY PB201 Topic 4

Planning Objectives
Planning objectives can be viewed in terms of the
importance of goals to an organization.

Provide a
direction

Focus on effort

Drive
organizational
planning and
decision making

Evaluate the organizations and achievements

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Maria MY PB201 Topic 4

Importance of Planning
Identify
investment or
business
opportunities

Identify suitable
alternative
actions

Reduce risk

Save cost

Facilitate the
achievement of
goals

Provide
guidance

Understand the
environment

Unsure the
organization do
not stray from
original goal.

Facilitate
coordination

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Maria MY PB201 Topic 4

The Process of Planning

Setting Goals

Defining The
Current
Situation

Identifying
Assistance &
Resistance

Re-evaluating
Goals

Developing A
New Set Of
Plans &
Actions

Five (5) Basic Stages in the Planning Process

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Maria MY PB201 Topic 4

Managers face selfconflict in establishing

goals.
Problems
faced in
preparing
plans:

Employees refused to
accept changes in a plan.
Changes in the
environment.

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Maria MY PB201 Topic 4

ORGANIZING
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Maria MY PB201 Topic 4

Introduction Organizing

Organizing is pattern of
relationship whereby
managers and employees
attempt to achieves the
same goals
These goals are the result
of the decision making
process performed by the
managers at the early
stages of planning

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Maria MY PB201 Topic 4

Definition of Organizing
Organizing is an efficient way of managing
of organizational resources in order to
achieve the planned goals and objectives.
Organizing refers to the
coordination of human
resources and organizational
resources whereby jobs,
physical resources, or
financial resources allocated
within the organization.

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Maria MY PB201 Topic 4

Importance of Organizing
It shows the department or
unit at each management
level in organizational
hierarchy.

It shows the job of

performance in an
organization.

It shows reporting the

relation between managers
and subordinate.

It shows duties and

responsibilities and of each
department and organization.

It shows the job division or specialization a unit or

department bears a specific job burden and responsibilities
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in organization.

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The Organizing Process

Listing
The Jobs

Dividing
The Jobs

Establishing
The
Department

Performing
Evaluation &
Adjustment

Coordinating
The Job

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Maria MY PB201 Topic 4

Organizational Structure
The way each activity in an organization
is perform the way formal jobs are
allocated, the way resources optimally
allocated, and the way the departments
are coordinated allocated.
Shows the position of a unit or division in the
organization and the relationship between
each division in the organization.
Shows the type of job perform in the
organization and the relationship between each
job.

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Maria MY PB201 Topic 4

Functional Organization
Activities or task are grouped according to
organizational function such as production,
marketing, finance.

PRESIDENT

VICE
PRESIDENT
OPERATION

VICE
PRESIDENT
PRODUCTION

VICE
PRESIDENT
FINANCE

VICE
PRESIDENT
MARKETING

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Maria MY PB201 Topic 4

Divisional Organization
Is a form of departmentalization whereby
activities are grouped according to similarities
in terms of products, market, and geographical
location.

Divided into three (3)

types of
departmentalization

Product
Departmentalization

Geographical
Departmentalization
Customer
Departmentalization
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Maria MY PB201 Topic 4

Product Departmentalization
GENERAL
MANAGER

MANAGER
FRESH MILK

MANAGER
BEEF

MANAGER
BUTTER

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Geographical Departmentalization

General Manager

Perak
Branch Manager

Johor
Branch Manager

Sarawak
Branch Manager

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Maria MY PB201 Topic 4

Customer Departmentalization
GENERAL MANAGER

MANAGER
INDUSTRIAL
CUSTOMER

MANAGER
ORDINARY
CUSTOMER

MANAGER
OFFICE
CUSTOMER

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Maria MY PB201 Topic 4

Matric Organization
Operates in a horizontal and
vertical organizational
structure whereby an
employee reports to two
supervisors such as the
division or line managers
and the functional or project
managers.
Also known as Multi
Command System.
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Maria MY PB201 Topic 4

General
Manager

Production
Manager

Finance
Manager

Marketing
Manager

Project
A

Production
Unit

Finance
Unit

Marketing
Unit

Project
B

Production
Unit

Finance
Unit

Marketing
Unit

Project
C

Production
Unit

Finance
Unit

Marketing
Unit

Example of Matrix Organization

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Division of
Labour

Each employee will perform specific

or specialized jobs according to
their skills, qualifications, and
abilities.

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Maria MY PB201 Topic 4

Delegation
Process whereby leaders or managers give
the rights or powers and responsibilities to
lower level employees to perform certain
duties on their behalf.

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Maria MY PB201 Topic 4

The obligations of
individual to perform their
duties thoroughly.
Must be responsible for
their own actions and
performances of their
employees.

Process of integrating an
activities in order to
achieve organizational
goals.
The managers have the
right to make decision or
take actions in order to
complete their given
duties.

Responsibilities

Accountability

Delegation
Concept

Coordination

Power &
authority

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Maria MY PB201 Topic 4

Centralization and Decentralization

Centralization
Refers to the
situation whereby
there is no
distribution of
power to
subordinates.

Decentralization
Involves the
distribution of
power from the
management to the
employers.
Through
decentralization,
subordinates have
the authority to
make decision.

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Maria MY PB201 Topic 4

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Maria MY PB201 Topic 4

Introduction Leadership
Managers need to manage their employees
in different ways in order to achieve high
employee performance
Managers must understand
each employees performance
behavior and why he acts in a
certain in particular situation.

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Maria MY PB201 Topic 4

Concept of Leadership
The way managers give instructions to their
subordinate and influence them to perform
important tasks.
Through an effective leadership style
subordinate can perform their duties well.

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Maria MY PB201 Topic 4

Definition of
Leadership
As a process leading
and influencing team
members in job
related activities
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Maria MY PB201 Topic 4

Leadership Approach

Leadership are identified based on 3 approaches:-

Trait
Approach

Behavioral
Approach

Contingency
Situational
Approach

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Maria MY PB201 Topic 4

Trait
Approach

Characteristic that differentiate

leaders from non leaders.

Effective leaders as follows:

Leadership
motivation

Desire to lead

Honest

Confidence

Intelligent

Knowledgeable

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Maria MY PB201 Topic 4

Behavioural Approach
Emphasize leadership function and leadership style.

Authoritarian

The main
leadership
style

Democratic/
Participative
Laissez faire/
Free form

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Maria MY PB201 Topic 4

Contigency/Situational Approach
Identifies various factors that can influence
leaders behaviours.

Two (2) importants

contigency
models:

Fiedler
Contigency
Model
Leadership
Situational
Model

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Maria MY PB201 Topic 4

Motivation
Pushing factor for individual to act or perform a
certain task.
Can be defined as anything that causes channels,
and strengthen human behavior in order to get a
desire product or achieve a goal.
There are two(2) motivational theories :

Maslows
Hierarchy
of Need
Theory

Herzbergs
Two
Factor
Theory
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Maria MY PB201 Topic 4

Communication
Involves the transfer of information between
two parties the receiver and the sender.

Communication is defined as a process of

exchanging ideas, opinions, and information
that have certain objectives and are
presented personally or non personally
through the use of symbol, sign and signal of
achieving organizational goals.

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Maria MY PB201 Topic 4

Non Verbal
Communication

Verbal
Communication

Communication Method

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Maria MY PB201 Topic 4

Lack of formal
channel in an
organization

Psychology and
economic
factors

Individual
emotion or
perception
during the
communication
process

Disturbance
and barriers
in the
communication
process

Different goals

Using
unsuitable
channel

Different power
and status

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Maria MY PB201 Topic 4

CONTROLLING

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Maria MY PB201 Topic 4

Introduction Controlling
Control is the last functional chain in the
management process.

Through a control, manager can be

determine whether organizational goals
has been successfully achieved or
otherwise.

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Maria MY PB201 Topic 4

Definition Controlling

Process whereby manager ensure that

actual activities are conducted in line with
the planned activities and take corrective
action to correct any mistake that occur in
order to achieve organizational goals.

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Maria MY PB201 Topic 4

Concept in Control
All manager must
involve themselves in
the organization
control function
The criteria that
determines the
effectiveness of a
control system is how
far managers control
the activities that are
conducted to achieve
the organizational 49
goals.

Importance of Control
Internal and External
changes in an
organization
Organizations size and
decentralization.

Mistake

Allocation of power and

responsibilities
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Maria MY PB201 Topic 4

Control Process
Set The Standards
Measure The Actual
Performance
Compare The Actual
Performance With The
Standards
Take Correction Action

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Flexibility

Effective Control
Principles

Acceptance by
employees
Focus on
important
factors
Accuracy of
information

Timeliness
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Maria MY PB201 Topic 4