 Management as a process involves

several work activities and functions

that must be followed and completed
by managers in order to achieve
organizational goals. Managers must
use management principles to guide
them in carrying out the management
process.
 Good management skills and practices
are the key in determining the success
and failure of an entrepreneurship.
1. Planning
2. Organizing
3. Leading
4. Controlling
 Firstprocess in management
 Enables other management functions such as
organizing , controlling , leading , and
decision making to be performed
 Planning is a process of analysing relevant current or
past information , with the purpose of measuring and
forecasting the future in order to achieve organizational
goals .
 Planning is also defined as a process whereby managers
form the organizational goal and decide the most
suitable action to achieve the goals .
 Planning also involves activities such as determining the
goals to be achieved by the organization and the
suitable application methods .
 mission
Strategi
planning
Goals
Overall
objective
Area objective Tactical
planning

Division objective

Department objective
Operational
Planning
Individual objective
 Involves setting long-term goals and objectives
for an organization and selecting suitable actions
to allocate organizational resources in order to
achieve these goals . Conducted for a period of
more than 5 years and also known as long-term
planning .
 The following steps must be taken by top-line
managers :
a) Identify market potential
b) Allocate organizational resources efficiently
c) Utilize resources productively
 The procedures to perform strategic planning in the
organization are as :
a) Form the company’s mission
b) Establish the goals of the project
c) Analyse the environment to detect threats and barriers
that can affect the organization’s plan
d) Develop a strategic plan (tactical and operational
plans will be developed by other departments or
divisions in the organization )
e) Monitor and measure performance to ensure that
organizational goals are effectively achieved .
 Also known mid-term planning
 Characteristics :
a) Concentrates on specific individuals , activities
, and resources
b) Conducted for a shorter period of time
compared to the strategic planning
c) Involves various functions of management
d) Established and implemented by middle-line
 Provides specific guidance on the roles and
responsibilities of the relevant parties in the
organization in achieving operational goals
 Developed and determined by the first-line
managers or operational managers
 Performed for a time duration of one year or less
. Also known as short-term planning
 Can be divided into two types :
i. Single-use plan and
ii. Standing plan
 Concentrates on the implementation of activities
to overcome complex problems
 Implemented once . Short duration of time .
 Can be divided into 3 types :
a. Programme
- an intermediate planning which involves a set
of bigger activities
- steps taken (a) determine the main steps to
be taken , (b) determine the individuals or
units responsible for each step , and (c)
determine the implementation period for each
step
b. Project
- an intermediate planning which involves a set of bigger activities
c. Budget
- statement that shows the financial resources allocated for specific
activities that will be conducted in a certain period of time

a. Policy
- general guideline that must be used by managers to make decisions
- examples :
1- a company’s policy that requires employees to work for at least 5
years in the organization before they are eligible to apply for senior
positions , and
2- the local banks of policy of approving a customer’s housing loan
on the condition that the customer has to fulfilled the stipulated
terms and conditions
b. Procedure
- set of comprehensive instructions to performs
sequences that are conducted repeatedly
c. Rule
- statement that supports or profits certain actions in
a situation
Differences between strategic planning , tactical
planning , and operational planning
a) time period
b) Scope
c) Level of goals
 The importance of goals are as follows :
a) Provide a direction
b) Focus on effort
c) Drive organizational planning and
decision making
d) Evaluate the organization’s
achievements
 Identify business or investment opportunities
Example if an organization wants to expand its market
overseas , the organization must evaluate the investment
opportunities that are supported by the government and
grab the incentives provided by the government .
 Identify suitable alternative actions
For example , a food processing company wants to expand
the market for their new products . The company should
be select and implement the best alternative based on the
desired goals . The company could choose on either to
establish a branch overseas and manufacture the products
in the new branch or export the new products to that
particular country .
 Reduce risks
Example , before deciding on exporting product , managers must
take into consideration the rules and barriers established by the
government . Detailed planning can reduce risks such as losses and
high taxes .
 Save costs
For example , detailed and careful planning conducted to market
processed food to another country would enable the organization to
use human resources efficiently and as a result reduce costs
incurred by the organization .
 Facilitate the achievement of goals
For example , a food processing company’s goal is to achieve a
company profit of RM60 million ,which is an increase of 30% in the
year 2008 . In order to achieve this goal ,managers must determine
the appropriate steps that need to be taken to achieve the target
of RM60 million .
 Provide guidance
Organization can communicate its desired goals and strategies to
the employees to achieve success .
 Provide guidance
Can ascertain the task to be performed , ways and the time frame to
perform the task and the individual who is responsible for
implementing the tasks .
 Facilitate coordination
For example , if the organization’s goal is to increase sales by 5% in
the next year , the marketing division must identify a suitable
strategy to promote its product in order to achieve an increase of 5%
in sales .
 Understand the environment
For example , the types of barriers that need to be encountered , the
competition pattern that is faced , and the types of threats and
opportunities that exists .
 Ensure organizations do not stray from original goals
Ensure that managers do not get distracted from achieving the
organization original’s goals .
 Setting goals

Defining the current

situation

Identifying assistance &

resistance

Developing a new set of

plans & actions

Re-evaluating goals
 • Very important
• Can develop and progress further
• Example , an electrical company’s goal of
Setting goals selling electronic equipment in a time frame of
2 years is to achieve target sales of 5,000 LCD
televisions per month .

• Managers will examine the current condition

and compare with the goals to be achieve .
• Managers need to ensure that the financial
resources , human resources and the
Defining the organization information are adequate
current • Managers can examine the condition of
current market based on available financial
situation data and statistics
• conduct a survey to study aspects ; market
demand , potential customer , marketing
employees , competitors information
,resources
 • Managers must examine the internal and
external factors that can assist or hinder
Identifying the process of achieving organizational
assistance and goals
resistance • Find suitable alternatives , identify
available support and existing barriers and
determine solution

Developing a
new set of • Identify , evaluate and select alternative
plans and • Find supporting alternatives
actions

• Re-evaluating all the steps implemented in

the planning process and identifying the
steps that had caused the planning to fail
Re-evaluating
• Managers can use the information
goals obtained from the evaluation process as
an indicator to develop a better plan in
the future .
 Efficient way of managing organizational
resources in order to achieve the planned goals
and objectives.
 Coordination of human resources and
organizational resources whereby jobs, physical
resources, or financial resources.
1. It shows the job division or specialization where by a
unit or department bears a specific job burden and
responsibilities in a organization.
2. It shows the duties and responsibilities of each
department in an organization.
3. It shows the reporting relationship between managers
and subordinates.
4. It shows the types of jobs performed in an organization.
5. It shows the grouping of work segments in an
organization.
6. It shows the departments or units at each management
level in the organizational hierarchy.
 Listing the jobs

Dividing the jobs

Establishing the
departments

Coordinating the jobs

Performing evaluations
and adjustments
 The way each activity in an organization is
performed, the way formal jobs are allocated, the
way resources are optimally allocated, and the
way departments are coordinates.
 The position of a unit or division in the
organization and the relationship between each
division in the organization.
 Types of jobs performed in an organization and the
relationship between each job.
 General manager

Finance manager Marketing manager Administor manager

Production manager

employees employees employees

employees employees
 In the twenty-first century, managers are facing new challenges in
managing their employees. Managers need to drive their employees
in achieving organizational goals.
 Managers are the brains of an organization. The organization’s
success or failure is usually connected to the managers or leaders. A
suitable leadership style practiced by managers can motivate
employees to follow the given instructions effectively and efficiently.
 Managers need to manage their employees in different ways in
order to achieve high employee performance. Manager must
understand each employee’s behavior and why he acts in certain
way in a particular situation.
 As organizational leaders, managers must know how to carry out
leadership activities in order to ensure employees will respect and
follow the given orders.
 The way managers give instruction to their subordinates and
influence them to perform important tasks.

 The ability to influence other people in the organization in order

to create an environment employees to work in a comfortable
situation in achieving organizational goals.

 Three main branches:

 Leadership
 Motivation
 Communication
 Stogdill-process of leading and influencing team
members in job-related activities.

 First, leadership must involve other people, such as

subordinates or followers. Subordinates or followers who
desire to receive orders from their managers will make the
leadership process a success. Without the existence of
subordinates, all the leadership qualities possessed by an
individual will become irrelevant.
 Second, leadership involves the unequal distribution of power
among leaders and team members. Leaders have the authority
to lead their team members activities. However, team
members cannot lead their leader’s activities.
 Third, in addition to having the valid power to lead their
subordinates’ activities, managers also influence their
subordinates.
 Leadership is the ability or capability of an
individual to influence others in order to act in the
manner desired, of a leaders in achieving the set
goals or is a process of leading the behavior of others
towards completing an objectives.
 According to Wren (1995), leadership is an interactive
process whereby leaders and their followers engage
in a mutual interaction in a complex environment
achieve mutual goals.
 Kouzes and Posner (1993), leadership as a reciprocal
relationship between those who choose to lead and
those who decide to follow.
• Required to have several leadership skills.
• Cooperating with others, understanding values,
using their inner sense, understanding themselves,
and having a foresight.
• Identified based on following on three approaches:

a) TRAIT APPROACH
b) BEHAVIOURAL APPROACH
c) CONTINGENCY OR SITUATIONAL APPROACH
1. The trait approach concentrates on characteristic
that differentiate leaders from non-leaders.
2. Leaders are individuals who can influence others
and possess authority.
3. Effective leaders exhibit several traits in them as
follows:
a) Leadership Motivation
Leaders are ambitious, energetic, demonstrate a high
level of effort, have a high desire to achieve, and possess
initiative.
b) Leaders have a strong desire to lead in order to influence
and lead their followers.
c) Honest and possess high integrity
Leaders have the ability to convince their followers. Leaders
also emphasize trust, honesty, and consistency in all their orders and
actions.
d) Confidence
Leaders have the ability their followers to obey their commands,
goals, and decisions.
e) Intelligent
Leaders are intelligent in collecting and evaluating information,
solving problems, having a vision, and making accurate
decisions.
f) Knowledgeable
Leaders have a high level of knowledge about the company and
the industry as well as the technical aspects of their organization’s
operations. This high level of knowledge enables leaders to
make accurate decisions and understand the implications of
the decision made by them.
1. The behavioural approach emphasizes leadership
function and leadership styles. Studies on
leadership styles focuses on task-oriented
leadership, authoritarian leadership or
centralization, and democratic leadership.
2. Studies have shown that the effectiveness of each
leadership styles depends on the organization’s
condition such as power, subordinates, and the
working environment.
1. Leadership style refers to the way leaders influence their team
members.
2. There are three main leadership style: authoritarian, democratic
or participative, and laissez-faire or free form.
3. Leaders usually practise more than one leadership style to
influence their team members.
DEFINITION OF MANAGERIAL CONTROL
 According to Stoner, Freeman and Gilbert (1995)
managerial control is a process to ensure that actual
activities are conducted according to the planned
activities.

 According to Mockler, control is defined as a systematic

effort in determining a set of perfomance standards based
on the objectives of planning the formation of a feedback
system, and the comparison between the actual
perfomance and the set standards.

 As a whole, managerial control is a process whereby

managers ensure that actual activities are conducted in
line with the planned activities and take corrective action.
CONCEPTS IN CONTROL
 Cost is the one of the aspects that managers attempt
to control. Managers may either bear high cost or fail in
achieving organizational goals.

 All managers must involve themselves in the

organization’s control function.

 Managers will not know whether their unit has

reached the established goals until all the activities
performed by their unit are evaluated and compared as
per the perfomance standars.

 An effective control system ensures that all the

activities are perfomed in accordance to the
organizational goals.
RELATIONSHIP BETWEEN MANAGERIAL
CONTROL AND PLANNING

 Managers who do not perform managerial control will

not know whether the organizational goals and plans have
been achieved or whether corrective action needs to be
taken in future.

 Every planning must have control. Planning without

control hinders the achievement of organizational goals.

 Control measures the progress of goals which are

achieved and enables managers to detect the level of
quality and weaknesses in planning in order to take
corrective action before it is too late.
IMPORTANCE OF CONTROL

 Strong and Smith stated that good management

requires an effective control system. The combination of
well-planned objectives, a strong organization, effective
instructions, and motivation will not bring success to an
organization if a suitable control system is not practised
by the organization

 There are four important factors related to the

importance of control in an organization as follows :

1) Internal and external changes in an organization

2) Organization’s sizes and decentralization
3) Mistakes
4) Allocation of power and responsibilities.
THE CONTROL PROCESS

SET THE STANDARDS

MEASURE THE ACTUAL

PERFOMANCE

COMPARE THE ACTUAL

PERFOMANCE WITH THE
STANDARDS

TAKE CORRECTIVE ACTION

EFFECTIVE CONTROL PRINCIPLES

1) Flexibility
 Control activities require flexibility and should be
adjustable from time to time according to changes in
the enviroment.

2) Accuracy of information
 Managers must obtain correct, valid, accurate and
trustworthy information.

3) Timeliness
 Information must be delivered at the right time and
at a suitable place.
4) Focus on important factors
 Controlled activities must only comprise important
activities and focus should be given to either the
perfomance aspect or the employee aspect.

5) Acceptance by employees
 An aspect that is controlled must obtain consensus
from all the employees in the organization.
CHARACTERISTIC OF EFFECTIVE CONTROL

1) Accurate information
 Information obtained must be accurate, measurable,
and comparable to the standards. The accuracy of
information received by employees is important to
rectify the problems.

2) Comprehensive objectives
 The established objectives must be understood by
the individuals assigned to achieve it. A control
system that is difficult to understand can cause
undesired mistakes to occur.

3) Timeliness
 Control must be conducted at the suitable and right
time in order to bring progress to the organization.
4) Easy to operate
 An effective control system should be able to
detect any irregularities that occur in a quick and
easy manner so that corrective action can be taken
promptly.

5) Economical
 The implementation of a control system must be
economical, logical and realistic in terms of cost.

6) Flexible
 The control system must be flexible in order for
organizations to grab new opportunities and act
promptly to any changes that occur

7) Acceptance by employees
 The implementetion of a control system must have
certain meaning and goals so that it can be easily
understood and accepted by all the employees.
 TYPES OF CONTROL

1) Feedforward Control
 Feedforward control is performed before an activity
starts.
 Managers who conduct feedforward control are usually
involved in making policies, procedures, and rules to
eliminate any undesired behaviours.

2) Concurrent Control
 Concurrent or steering control is performed during the
implementation of a job or activity.

3) Filtering or Yes/No Control

 Filtering or yes/no control involves a filtering process,
whereby certain procedures must be approved before an
operation is continued.
 Managers will take corrective action after seeing the
organization’s achievement in a certain period.
 Filtering control is suitable for reviewing and evaluating
the effectiveness of an activity.

4) Feedback Control

 The objective of feedback control is to measure the

results of an action.
 CONTROL TECHNIQUES

FINANCIAL CONTROL TECHNIQUES

1) Financial Statements

 Financial statements are used to calculate the financial

value of an organization’s internal and external products
and services.
 The financial statements of an organization comprise
three main statements:
a) break-even analysis
b) balance sheet
c) the funds flow statement.
2) Audit
 Audit is the process of analysing and identifying details
that have mistakes, correcting the mistakes and
pdating the financial statements after taking into
account the mistakes.

3) Budget
 Budget is a quantitative statement stated in monetary
value. It describes the management’s plan to achieve
certain objectives in a given time frame
 TRADITIONAL NON-FINANCIAL CONTROL
TECHNIQUES

1) Statistical Data
 Statistical data is data obtained in the form of figures.

2) Special Reports And Analysis

 Statistical reports not only cover computer output, but
also include graphs, charts and figures in any form that
can be used by managers to evaluate performance.

3) Internal Operation Audit

 Audit is a process of verifying the organization’s
financial statements and records by an external party or
employees who possess relevant qualifications.
4) Self-Evaluation by Managers
 The difficulties in implementing a control process in an
organization have motivated managers to make a
self-evaluation in order to select the control technique
that should be used for the benefit of the organization
as a whole.

MODERN NON-FINANCIAL CONTROL TECHNIQUES

1) Gantt Chart

2) Milestones Budget

3) Programme Evaluation and Review Technique/Critical Path

Analysis.