Professional Documents
Culture Documents
BMOM 5203
ASSIGNMENT
PART 1
1. Please answer the questions in not less than 5,000 words in total.
2. The answer sheet should include cover page, table of contents, references, and
appendix (if necessary).
3. The answers should be deliberate, precise, elaborative, original and inclusive of
real business issues with examples.
4. Answer all the questions.
Question 1
In a short essay, describe the three main types of managerial skills identified
by Robert Katz. Which skills are most important to each level of management,
and why? [6 marks]
Answer 1
The three main types of managerial skills as identified by Robert L. Katz are
technical skills, human skills followed by conceptual skills. Different skills are
applicable to different levels of management which are top, middle and operational
management in order to achieve successful management performance.
Technical skills require one to fully utilize their specialized knowledge and expertise
to work related techniques and procedures (Certo & Certo, 2009). It refers to the
proficiency in a certain specialized field such as accounting, computers
programming, engineering and manufacturing. Most of the times, it is actually
working with “things” such as processes or physical objects.
In other words Technical Skill is the ability of a manager to use the equipments,
methods and techniques involved in performing specific tasks. This skill is required
more at the lower level of management i.e. at the supervisory level. For the higher
levels, the technical skill is less important as managers can rely upon others for
these technical informations. Line managers and operation managers are represent
this group.
Human skills is the ability of a manager to work with, understand, and motivate
people in the organization. It also involves the ability to build effective work teams
involve building cooperation and the capability to work well with other peoples both
individually and in a team. The human aspect of management requires individual as
well as group relations to be maintained and developed for achieving maximum
efficiency.
Since managers have to deal directly with peoples from time to time, they need to
pose good interpersonal skills to communicate with peoples especially their fellow
colleagues and subordinates. Human skills are important at all levels of management
but it is very crucial at the middle level management since they need to lead,
motivate, communicate and inspire enthusiasm and getting the trust among their
peoples, supervisors and workers group to achieve company’s common goal. This
skill is crucial and the managers with this skill are able to get the best out
of their people. One of the examples is company negotiators, departmental head,
project managers and HR managers.
Most of the times, manager have to think and conceptualize about abstract and
complex situations (Javed, 2009).
They should also aware of how changes in one part of the organization will influence
the rest of the organization. These managers must also be able to see any small
activities to be done by their employees that can support the goals and objectives of
the company. Conceptual skill is the most difficult skill to acquire. People that must
possess these skills are Managing Directors and Chief Operating Officers.
Figure 1: As a manager moves from the supervisory level to the top-management level, conceptual
skills become more important than technical skills, but human skills remain equally important
(Certo & Certo 2009).
In a nutshell, these three managers from different management levels must maintain
good relationship among each other and their group, in order to achieve
organization’s objectives and goals.
Question 2
Answer 2
Defining management is the ability to execute tasks that meets organisational goals
through organisational resources and when we talk about variables may affect the
management approach four basic management functions in the management
process the namely planning, organizing, influencing and controlling are referred.
Organizing: Assigning the tasks developed under the planning function to various
individuals or groups within the organisation and then creates a mechanism to put
plan into action (Certo & Certo, 2009)..
Figure 2: Relationships among the four functions of management used to attain organisation goals
(Certo & Certo 2009, p 34).
Generally, this approach attempts to foresee the conditions or situations that the
organization might face in the future and list down various management methods
that are said to have higher chances of success. Initially, managers have to perceive
organizational situations as they exist in reality. Then, they have to select the best
management tactics accordingly to diverse situations.
Usually the contingency approach is required because the change of variables in the
Organisational Resources.
Figure 3: Transformation of organizational resources into finished products through the production
process (Certo & Certo 2009, p 34).
For examples shall a budget is reduced in a gas pipeline construction works, the
method of construction might need to be changed. For instance the horizontal
directional method (no digging policy) which is are expensive, shall be changed to
open cut method.
A “contingency approach” needs to be carried out and the planning, organising and
control process need changed. Reasons, using different method shall involve
different machineries, equipments and group of workers even the schedule also
affected. Therefore the planning process needs to be changed. Using different
method means the implementation of works are changed and this shall involve the
change of organising process. Influencing process is remaining unchanged as the
HDD teams are also required motivating, directing, communicating, group dynamics,
leadership and discipline. Lastly the method of quality control also changed for a
different construction method (controlling process change). This scenario can also
be considered as implementation change.
In some cases the Project Manager need to make a change either to the people,
technology or structural in order to achieve the organisational effectiveness. The
change on either one or all these variables called organisational change.
For example the implementation of ISO 9000: 2000 in a company that do not
practice the early version of ISO shall affect the company controlling process. All the
earlier controlling process either shall be amended accordingly or need to be
included inside the company ISO procedures.
Shall the design engineer is changed the planning process might need to be
changed as well because the design and project approach may differ and in the
other hand shall a new technology is brought in, the organising process will be
Figure 5: The organisation, the levels of its environment, and the components of those levels (Certo
& Certo, 2009. p. 229).
Changes on one or more of the PESTEL component can also result to contingency
approach. The changes involves shall affect not only the management process,
organisation resources but also the external environment component.
One of the external environmental factors that entrepreneur should take into
consideration will be political factors. They have to beware of government policy
such as the degree of intervention in the economy. Specifically, political factors
include areas such as labour law, tax policy, environmental law, subsidies, trade
restrictions, tariffs, and political stability. Furthermore, governments have great
influence on the certain items e.g. health, education, and infrastructure of a nation.
For example shall suddenly the government stop giving the work permit for foreign
workers from Indonesia and bring in more workers from Pakistan, the influencing
process may change as different group of people shall requires different type of
approach.
Second, economic factors which include interest rates, taxation changes, economic
growth, inflation and exchange rates should be considered since it can have major
impact on a firm’s behaviours. For example, investment is not advisable when
interest rates are high because the borrowing cost will be higher therefore the
planning process need to be changed e.g. company operation should rely on
project with self financing our limit to own resources.
Third, social factors include the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on safety or a
greater number of pensioners in a population. Demographics needs and demand.
Change of demographics shall require change in planning process in order to suit
the revolution.
Next, technological factors are essential as well since lots of new products and
processes had been created by technological advances. Some of the times,
technology e.g. automation, will reduce a firm’s product costs, improve product’s
quality and even lead to innovation this is change in organising process.
Not only that, environment factors which include weather and climate change are
important as well. Firms should be aware of the environmental issues due to the
recent global warming and make some efforts by creating more environmental
friendly products and processes as this will definitely affect the demand patterns and
generate more business opportunities this is change in planning process.
Lastly, legal factors are those related to the legal environment in which firms
operate. New legal system such as increase in the minimum wage or greater
requirements for firms to use recycle product will definitely increase a firm’s
production costs. These factors can affect company operations, operation costs, and
the demand for its products. This might change the controlling process.
Question 3
Answer 3
Basically, they have the ability to organize multiple peoples, tasks and resources on
any given day. They are visualizer and an actualizer as they can visualize something
and when they visualizes they see exactly how to make it happen.
Not only that, they are risk takers and see “problems” as “opportunities” and
create value by taking action to identify the solutions to those problems. In
order to succeed, they can bear with constructive criticism of their business and
adapt it quickly to achieve the best product possible with the lowest cost and highest
quality. Good entrepreneurial characteristics are crucial in creating and maintaining
an organization that is capable to effectively carry out its corporate strategies over
the long term. Eventually, the entrepreneur is able to adapt quickly to changes in its
external environment through the deployment of fluid and dynamic strategic plans
due to the development of core competence over times (Hadji & Cocks, 2007).
Internal elements basically the strength and weakness of the company which involve
management, operation, finance and marketing.
I’m 100 percent agrees with the above article and with the entrepreneurs proof of
success, it is hard to believes that all these entrepreneurs just do it by luck or by
chances. I believe they had really done their homework, study, understand and
managed their business well including understanding and monitoring their business
internal and external environment changes.
The opportunities and the threats relates to the changing of external environment
shall be discussed thoroughly in this topic. The article did mention that one of the
reasons for the higher entrepreneurial intensity in emerging market is because there
are many undefended niches to occupy but without a proper planning the business
cannot be materialized.
In order to help entrepreneurs to identify, study, plan, execute control and monitor
their ideas or projects in a changing external environment there are several
models/tools that can be used as below;
In the article mentioned about some of these entrepreneurs have a staying power
and able to adept challenging business environment into their competitive
advantage. Qanawat, a Saudi telecommunications company is one of the best
examples where they had took up rural areas in Saudi Area where difficult to reach
and untapped by the industry leaders. With that they managed to eliminate “new
entrants” currently their revenue had scaled up to RM 1 billion a year. Not only that,
with the experiences they are now positioned to expend to Africa and Middle East
market.
Jordan Aramex, the FedEx of Middle East and Airbule the Pakistan new air line are
also other examples where they had successfully create an opportunity from
challenging situations. Despite luck, surely these entrepreneurs do study and
understand the external environment change of their business well.
According Porter’s Model, firstly, an entrepreneur has to take into account the
threat of new entrant. It refers to the ability of new firms to enter an industry
because this will affect the competition level. An industry’s attractiveness will
decrease as threat of new entrants increase. In the article, Amjad Aryan who
launched “Pharmacy 1” Jordan first drugstore chain surely had took this
consideration. The story of his successful is because there is no any threat from the
present market.
Figure 6: Porter’s model of factors that determine competitiveness within an industry (Certo & Certo,
2009. p. 232).
Second, buyer power is vital as well as it refers to the power that customers have
over the firms operating in an industry (Certo & Certo, 2009).
Third, supplier power refers to the power that suppliers have over the firms
operating in an industry (Certo & Certo, 2009). When the bargaining power of both
buyers and supplier increases the attractiveness of an industry will decrease. The
“Eye-2-Eye Optical” eye ware chain that founded by Saudi women, Aisha Natto
whereby she had even built her own manufacturing plant to meet the demand of her
high end glasses is one of the approach that can be taken to control the price, to
meet demand and reduces depended to suppliers.
The article also mentioned that these new entrepreneurs form the emerging market
are mostly have experiences studying and working in America and European
countries, where they have gain their experiences, developed core market skills,
and international networks. With this background and most of them poses minimum
a first degree and some of them poses a higher degree believe it or not I believed
they had used this kind of model before opening their business. That is why most of
them had open a business which is consider “virgin” in their country.
PESTEL model can also be used to monitor or diagnose the changing of external
environment that can affect to the success or failure of entrepreneurship. External
environments consist of economy condition, government policies, demographics,
technology, international influences, competitors and a changing labour force. The
ignorance of external environments will cause devastating impacts on an
organization. A formal strategic planning will definitely improve a firm’s performance
in overall. Since entrepreneurs operate all around the world, there is a need to
extend planning research to firms representing a diversity of national and cultural
settings (Hoffman, 2007).
One of the external environmental factors that entrepreneur should take into
consideration will be political factors. They have to beware of government policy
such as the degree of intervention in the economy. Specifically, political factors
include areas such as labour law, tax policy, environmental law, subsidies, trade
restrictions, tariffs, and political stability. Furthermore, governments have great
influence on the certain items e.g. health, education, and infrastructure of a nation.
The article says that the political and economic conditions in emerging
countries are also relaxed and this has also turned to be an advantage (example to
political factors).
Second, economic factors which include interest rates, taxation changes, economic
growth, inflation and exchange rates should be considered since it can have major
impact on a firm’s behaviors. For example, investment is not advisable when interest
rates are high because the borrowing cost will be higher. Exchange rates affect the
costs of import/export activities. In the article, it’s mentioned that some of the
entrepreneurs had limit their capital business start up requirement of around RM
200,000.00, is also not too taxing but may affect a business shall no banks and
venture financing are involve (example to economic factors). Entrepreneur in
Malaysia are considered lucky as our Malaysian Government encourages
entrepreneurs through a lot of entrepreneur scheme and graduate entrepreneurs
scheme. Here we are able to get help and assistant form the bodies such as Ministry
of Entrepreneur & Corporative Development (MECD), “Tekun” fund, Bank
Pembangunan Malaysia Berhad (PBMB), Credit Guarantee Corporation (CGC),
Majlis Amanah Rakyat (MARA) and others.
Third, social factors include the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on safety or a
greater number of pensioners in a population. Demographics needs and demand. In
the article, Qanawat, a Saudi telecommunications company which is the only
company that gave their services in the rural/remote areas is a good example for
social factors. The Dunkin’ Donuts in Beirut where the concept is to attract young
professional is also one of a good example where a good entrepreneur must be able
to think and understand what are the market needs and demand.
Next, technological factors are essential as well since lots of new products and
processes had been created by technological advances. Some of the times,
technology e.g. automation, will reduce a firm’s product costs and manufacture time,
improve product’s quality and even lead to innovation. The “Eye-2-Eye Optical” eye
ware chain that founded by Saudi women, Aisha Natto might be suitable for technical
factor, whereby she had introduced high end glasses and even built her own
manufacturing plant to meet the demand.
Not only that, environment factors which include weather and climate change are
important as well. Firms should be aware of the environmental issues due to the
recent global warming and make some efforts by creating more environmental
friendly products and processes as this will definitely affect the demand patterns and
generate more business opportunities or even the company who involves in this
business can enjoy a government grant or a low tax.
Lastly, legal factors are those related to the legal environment in which firms
operate. New legal system such as increase in the minimum wage or greater
requirements for firms to use recycle product will definitely increase a company’s
production costs. These factors can affect company operations, operation costs, and
the demand for its products. Surely this kind of situation is to be avoided by any
company.
Despite Porter’s and PESTEL Model, Belbin 9 Team Roles Theory is also
important to help a group of people or a team to success in their business.
They can also advice the “Plant” whether their product are good and as what market
demand and they can also advice the right technology for “Specialist” to
concentrate on.
The first Team Role to be identified was the “Plant”. The role
was so-called because one such individual was “planted” in each
team. They tended to be highly creative and good at solving
problems in unconventional ways.
One by one, the other Team Roles began to emerge. The Monitor
Evaluator was needed to provide a logical eye, make impartial
judgments’ where required and to weigh up the team’s options in
a dispassionate way.
It was only after the initial research had been completed that the
ninth Team Role, “Specialist” emerged. The simulated
management exercises had been deliberately set up to require no
previous knowledge. In the real world, however, the value of an
individual with in-depth knowledge of a key area came to be recognised as
yet another essential team contribution or Team Role. Just like the other
Team Roles, the Specialist also had a weakness: a tendency to focus
narrowly on their own subject of choice, and to priorities this over the
team’s progress.
Belbin 9 Team Roles Theory shall help the entrepreneurs to slot in the right
candidates in the respective role to get the best outcome or output. A good example
from the articles is Soudi-based Secu Tronic, a high-tech security company that has
flat management structure about 200 entrepreneurs are working together.
Conclusion
No matter how they done and what model were used, to be a successful
business/company, the entrepreneurs need to monitor, plan and make use of the
change of the external environment factors to their advantage.