FB Managment

Topic
Introduction
Outlines
1. Teacher’s humble Introduction
2. Introduction by students
3. Foundation Program Introduction
4. Business Management Learning Outcomes Introduction
- Content
- Assessment Criteria
- Teaching Schedule
5. Assessment Policy
6. Attendance Policy
7. Classroom Policy
Who you are?
Who your lecturer is?
Foundation Program Details
Program Purposes
-Introducing with fundamental Business terms and concepts
- Training on study skills
- Introducing the policies, procedures and practices of BTEC program
- Empowering on the sprit of leadership
- Polishing English Language Skills

Teaching Materials
- Program book
- Reference book
- Lecture Slides
- Other Suggested Materials

Learning Outcomes & Assessment Criteria
(Referring back to Program Book)

Delivery & Assessment Activities
-Lectures
- Tutorials
- Workshops
- Excursion
- Group work and discussions
- Written Assignment
- Presentations
LO 1 Understand the concepts of Business
Management (Details)
Assessment Criteria
1.1 Explain the meaning of management and the main functions and responsibilities of
managers in today’s organizations
1.2 Carry out SWOT analysis and PESTLE analysis for a selected organization
1.3 Produce Vision, Mission and SMART Objectives for a selected organization
1.4 Construct appropriate organizational structure for a selected organization
1.5 Develop suitable leadership style for a selected organization
1.6 Explain 3 different types of controlling function for a selected organization

LO 1 Understand the concepts of Business Management (Details)
Lesson Plan
Week Topic AC Activities
1
2 Introduction 1.1
1 Nature of Management 1.2
2 Business Environment
3 3 Planning 1.3 Tutorial1
4 Types of Business Organization
4 5 Organizing 1.4 Tutorial2
5 6 Leading 1.5
6 7 Controlling 1.6 Tutorial3
Excursion (Projection)
7 8 School of Management Thoughts
8 Revision Tutorial4
9 Revision Group Discussion
Assessment Policy
-Referring back to program book for Grading and assessment procedure
- The purpose of Group Assignment in Foundation program is to get teamwork

experience and real work condition experience by students. For the sake of
students for the above reason, the following practices are applied:
- Members for Pre-University Foundation Group Assignment will be
identified by MIC Exam Services.
- Members in Group could not be transferred and could not transfer into
another group.
- Members in group are required to maintain their group until accomplishing
their final assessment.
- Peer assessment will be taken place for protecting from unfair conditions
among students.
Attendance Policy
- Account on every session
- Announce once per term
- 70% of total attendance is required to be fulfilled in every announcement
- Class teacher is empowered the ultimate authority on accounting attendance in

class.
Classroom Policy
Dos Don’ts
Giving Concentration on Lectures and Being Late over 15 minutes to the class
Classmates Discussions (Will not be eligible for attendance)
Asking Questions to Lecturers on what Being out of class over 5 minutes during
you do not understand/ on what you class hours and excusing class out more
need more clarifications than once
Participating actively in class Using electronic gadgets in class
discussions and activities
Doing regular assignments (homework) Acting the manner of class interruption
such as readings given by lecturers and destruction
What is Management?
Why do you need to study Management?
Reading Gifts
Management (Stephen P. Robbins)
Session Summery
I hear and I forget. I see and I remember. I do and I understand.

Confucius
20
Topic - 1
Nature of Management
LO 1: Understand the concepts of business
management
1.1 Explain the meaning of management and the main functions
and responsibilities of managers in today’s organizations
1.2 Carry out SWOT analysis and PESSTLE analysis for a selected
organization
1.3 Produce Vision, Mission and SMART Objectives for a selected

organization

Session Outlines
1. Definitions of business and management
2. The difference between efficiency and effectiveness and
their importance for organizational performance
3. Management functions
4. Who are managers?
5. Types of managers
6. Managerial Skills
7. Managerial Roles
What is Business?
 It can be defined as an entity that produces goods and services in
order to fulfill the needs and wants of customers for the purpose of
getting profit.
LEVELs of Business Activity
 Primary
 Secondary
 Tertiary
 Quaternary
What is Management?
Management
 Art of getting things done through people.
 Attainment of organizational goals in an efficient and

effective manner by planning, organizing, leading and
controlling organizational resources.
Efficiency and Effectiveness
Managerial Concerns
 Efficiency
“Doing things right”
Getting the most output from the least amount of inputs
 Effectiveness
“Doing the right things”
Completing activities so that organizational goals are achieved
Efficiency and Effectiveness in Management
Efficiency (Means) Effectiveness (Ends)

Resource Goal
Usage Attainment
Low Waste High Attainment
Management Strives for:

Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Management Functions
- Developed by Henri Fayol in 1916, identified in his book
named “Administration Industrielle et Generale.
- Initially categorized as five functions: Planning, Organizing,

Commanding, Coordinating & Controlling
- Then, condensed to four functions: Planning, Organizing,

Leading & Controlling
Management Functions
Who are Managers?
- Robbins and Coulter stated in Management (2012) that “ a manager is
someone who coordinates and oversees the work of other people so that
organizational goals can be accomplished.”
Managers
- have goals;
- are responsible for the achievement of results;
- work in organizations;
- must cope with uncertainty;
- work in partnership with people.
Managerial Levels
Top
Top
Managers
Managers
Middle Managers
Middle Managers
First-Line Managers
First-Line Managers
Nonmanagerial Employees
Nonmanagerial Employees
Types of Managers
Vertical Difference
First-line Managers
 Managers at the lowest level manage the work of non-managerial
employees directly or indirectly involved with the production or creation
of the organization’s products
Middle Managers
 Managers between the first-line level and the top level of the organization
who manage the work of first-line managers
Top Managers
 Managers at or near the top level are responsible for making organization-
wide decisions and establishing plans and goals affecting the entire
organization
Types of Managers
Horizontal Difference
Line Manager
A manager responsible for the manufacturing and marketing departments
that make or sell the product or services.
Staff Manager
A manager in charge of department such as finance and human resources
that support line departments.
Organization Chart
Board of Directors
Managing Director
Production Manager HR Manager Marketing Manager Finance Manager
Dept A Dept B Engineering Market Research Sale Manager
Supervisor Supervisor Sales team A Sales team B

Managerial Skills
Robert Katz
Managerial Skills
• Conceptual skills
– Ability to think strategically-to take the broad, long-term view- and to
identify, evaluate, and solve complex problems.
– Identification of opportunities for innovations
– Recognizing problem areas and implementing solutions
– Selecting critical information from masses of data
– Understanding of business uses of technology
– Understanding of organization’s business model
– Conceptual skills are needed by all managers but are especially
important for managers at the top.
– Many of the responsibilities of top managers, such as decision making,
resource allocation, and innovation, require a broad view.
Managerial Skills
• Human skills
– Ability to motivate, facilitate, coordinate, lead, communicate, and

resolve conflicts.
– Allowing subordinates to express themselves without fear or ridicule,
encourages participation, and show appreciation for employees'
efforts.
– Coaching and mentoring skills
– Diversity skills: working with diverse people and cultures
– Networking within and outside organization
– Working in teams: cooperation and commitment
– Human skills are essential for managers who work with employees
directly on a daily basis.
Managerial Skills
• Technical skills
– the understanding of and proficiency in the performance of specific

task.
– including mastery of the methods, techniques, and equipment
involved in specific functions such as engineering, manufacturing, or
finance.
– involving specialized knowledge, analytical ability, and the competent
use of tools and techniques to solve problems in that specific
discipline.
– Technical skills are particularly important at lower organizational
levels.
Managerial Roles
Informational
Informational Interpersonal
Interpersonal Decisional
Decisional
•Monitor •Figurehead •Entrepreneur

•Disseminator •Leader •Disturbance handler
•Spokesperson •Liaison •Resource allocator
•Negotiator
Henry Mintzberg
Managerial Roles
Category Role Activity
Informational Monitor Seek and receive information, scan periodicals and reports, maintain
personal contacts.
Disseminator Forward information to other organization members; send memos
and reports, make phone calls.
Spokesperson Transmit information to outsiders through speeches, reports, memos.
Interpersonal Figurehead Perform ceremonial and symbolic duties such as greeting visitors,
signing legal documents.
Leader Direct and motivate subordinates; train, counsel, and communicate
with subordinates.
Liaison Maintain information links both inside and outside organization; use
e-mail, phone calls, meetings.
Decisional Entrepreneur Initiate improvement projects; identify new ideas, delegate idea
responsibility to others.
Disturbance handler Take corrective action during dispute or crises; resolve conflicts
among subordinates; adapt to environmental crises.
Resource allocator Decide who gets resources; schedule, budget, set priorities.
Negotiator Represent department during negotiation of union contacts, sales,
purchases, budgets, represent departmental interests.
Reading for Next Sessions
Management (Stephen P. Robbins), Chapter 1
Session Summery
The productivity of work is the job of the worker but the manager.
Peter F. Drucker
44
Topic - 2
Business Environment
management
organization

organization

Session Outlines
1. Classification of Business Environment
2. Micro Environment
3. Macro Environment
4. PASTEL Analysis
5. SWOT Analsysis
Business Environment
• All the forces and factors that affect the activities of the firm
• It can be divided into two:
- Macro Environment and
- Micro Environment
Micro Environment
• the environment that includes the elements within the
organization’s boundaries and has a direct impact on the daily
activities of the company.
• Customers, Competitors, Suppliers, Shareholders, Employee &

Labor market and Financial Institutions
Customers
• people and organizations that acquire goods
and services from the organization
• determine the organization’s success

Competitors
• Other organizations in the same industry or
type of business that provide goods or
services to the same set of customers.
Suppliers
• people and organizations that provide the raw
materials the organization uses to produce its
output
• organization must maintain good relationship
with suppliers to get the materials it needs
• cooperation is the key to saving money,
maintaining quality and speeding products to
market
Suppliers
Shareholders
• an individual or organization owning stock in a
company
• can influence the policies and procedures of
the company
• get dividends by investing in the business
• can withdraw the capital if they are not
satisfied
Shareholders - continued
• have a legal claim on a percentage of the
company’s earnings and assets and share the
same level of limited liability
• In the case of bankruptcy, shareholders lose

the entire value of their holdings
Employees and Labor Market
• Employee - a person who is hired to work for
another or for a business in return for
payment and welfare
• Labor Market - The people available for hire

by the organization
Financial Institutions
• an institution that provides financial services
for its clients or members
• 3 major types of financial institutions:

- Deposit-taking institutions
- Insurance companies and pension funds
- Brokers, underwriters, and investment funds
Macro Environment
• all elements existing outside the boundary of the
organization that have the potential to affect the
organization in the long term
• International, Legal-Political,
Economic, Social-Cultural,
Technological, and Natural
International
• represents events originating in foreign countries
as well as opportunities for companies in other
countries
• provides new competitors, customers and
suppliers
• shapes social, technological and economic trends
• global environment – complex & ever-changing
environment
Legal-Political
• includes federal, state and local government
regulations and political activities designed to
influence company behavior
Pressure Group
- an interest group that works within the legal-
political framework to influence companies to
behave in socially responsible ways
Economic
• the general economic health of the country or
region in which the organization operates
• consumer purchasing power, unemployment

rate and interest rates are part of
organization’s economic environment
Sociocultural
• represents the demographic characteristics,
norms, customs, and values of the population
within which the organization operates
• Important sociocultural characteristics are
geographical distribution and population
density, age and education levels
• demographic profiles are the foundation of
tomorrow’s workforce and consumers
Technological
• scientific and technological advancements in
the industry and society at large.
Natural
• all elements that occur naturally on earth,
including plants, animals, rocks, and natural
resources such as air, water, and climate.
• It has no voice of its own
• Needs in the natural environment come form
other sectors: government regulation,
consumer concerns, bad press in media,
competitors’ action or employees
Natural - continued
• the environmental group has prompted
companies to take actions:
– Eliminating no biodegradable plastic bags from the
environment
– Improving efficiency of plants and factories
– Investing in cleaner technologies
PESTLE Analysis
(An analysis Tool to analyse Macro environment)
PESTEL Analysis
Political
Economics
Social
Technological
Environment
Legal
Note: Each fact is required to be relevant with focusing topic.
Companies need to consider the physical
environment like:
- the natural features of a country such as its

size, location
- Availability of raw materials and resources
- Infrastructure
SWOT Analysis
SWOT Analysis
SWOT Analysis
SWOT Analysis
Strengths
• A firm's strengths are its resources and capabilities that can be used as a basis for
developing a competitive advantage. Examples of such strengths include:
• patents
• strong brand names
• good reputation among customers
• cost advantages from proprietary know-how
• exclusive access to high grade natural resources
• favorable access to distribution networks
SWOT Analysis
Weaknesses
The absence of certain strengths may be viewed as a weakness. For example, each of
the following may be considered weaknesses:
• lack of patent protection

• a weak brand name
• poor reputation among customers
• high cost structure
• lack of access to the best natural resources
• lack of access to key distribution channels
In some cases, a weakness may be the flip side of a strength. Take the case in which a
firm has a large amount of manufacturing capacity. While this capacity may be
considered a strength that competitors do not share, it also may be a considered a
weakness if the large investment in manufacturing capacity prevents the firm from
reacting quickly to changes in the strategic environment.
SWOT Analysis
Opportunities
The external environmental analysis may reveal certain new opportunities for profit
and growth. Some examples of such opportunities include:
• an unfulfilled customer need
• arrival of new technologies
• loosening of regulations
• removal of international trade barriers
Threats
• Changes in the external environmental also may present threats to the firm. Some
examples of such threats include:
• shifts in consumer tastes away from the firm's products
• emergence of substitute products
• new regulations
• increased trade barriers
SWOT Analysis
The SWOT Matrix
SWOT Analysis
• The SWOT Matrix
• A firm should not necessarily pursue the more lucrative opportunities. Rather, it
may have a better chance at developing a competitive advantage by identifying a
fit between the firm's strengths and upcoming opportunities. In some cases, the
firm can overcome a weakness in order to prepare itself to pursue a compelling
opportunity.
• To develop strategies that take into account the SWOT profile, a matrix of these
factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is
shown below
• S-O strategies pursue opportunities that are a good fit to the company's strengths.
• W-O strategies overcome weaknesses to pursue opportunities.
• S-T strategies identify ways that the firm can use its strengths to reduce its
vulnerability to external threats.
• W-T strategies establish a defensive plan to prevent the firm's weaknesses from
making it highly susceptible to external threats.
Session Summery
If you know the enemy and know yourself and you need not to fear the result of
hundred battles.
Sun Tzu
81
Topic - 3
Planning
management
organization

organization

Objective Outlines
- What is Planning?
- Vision, Mission & Objective
- SMART Objective
- Goal Vs Objective
- Vision Vs Objective
- Strategy & Tactic
- Business Planning
What is Planning?
- Planning defined as a function of forecasting future conditions, setting
objectives and developing means to achieve them.
- It has two main things:

• - Destination &
• - Mean of achieving it.
Destination
- Vision
- Mission
- Objective
Vision
- What organization wants to become in future. (Broad view) (To achieve your vision,
you have to set goals & objectives)
Vision
Coca Cola Vision

• Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
• People: Be a great place to work where people are inspired to be the best they can
be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.
Mission
• The purpose of the existence of the organization. It describes the organization’s

values, aspirations, and reason for being.
Mission
Well-designed Mission Statement
- outlines clearly the way ahead for the organization;
- provides information and inspiration to their employees;
- enhance employee motivational and organizational performance;
- identifies the business the organization will be in the future;
- provides a definition of success;
- provides a living statement that can be translated into goals and objectives at each
level of the organization.
Mission
• Coca Cola Mission
Our Roadmap starts with our mission, which is enduring. It
declares our purpose as a company and serves as the
standard against which we weigh our actions and decisions.
- To refresh the world...

- To inspire moments of optimism and happiness...
- To create value and make a difference.
Objective
- The targets towards which management is directed.
Objectives are important in order to:
- determine strategy;
- provide a guide to action;
- provide a framework for decision making;
- coordinate activities;
- facilitate prioritization and resolve conflict between departments;
- measure and control performance;
- encourage a concentration of long-term factors;
- motivate employees;
- provide shareholders with a clear idea of the business in which they have invested.
Hierarchy of Objectives
• Strategic objectives
-market share, sales revenue, cash flow and productivity (eg- 15% market
share within three years)
• Tactical objectives
-short-term department performance targets (eg- to raise output by 5%
within 6 months)
• Operational objectives
-statements addressed to small groups and individuals. (eg- 10 new dealers
by the end of the month)
How to be SMART
SMART Objectives
• Specific:
Be precise about what you are going to achieve
• Measurable:
Quantify the objectives
• Appropriate:
Align with the needs of the target audience
• Realistic:
Do you have the resources to make the objective happen?
• Time-Specific:
State when you will achieve the objective
SMART: Specific Objectives
Specific:
Be precise about what you are going to achieve
– Specify target
– Specify intended outcome
– One outcome per objective
– Avoid vague verbs (e.g. know, understand)
– Make sure the objective is linked to the goal
– Sample: By January 2010, at least 3% of the engineering majors at the
institution will be female
SMART: Measurable Objectives
Measurable:
Quantify the objectives
– Use measures as indicators of program success
– If possible, establish a baseline (e.g. In January 2009, 2% of the engineering

majors at the institution were female)

SMART: Appropriate Objectives
Appropriate:
Align with the needs of the target audience

– Meeting the objective will advance the goal
– Identify a specific target audience
– Are inclusive of diversity within your group
– Sample: By January 2010, at least 3% of the engineering majors at the institution

will be female
– Note: The “A” is sometimes called “Attainable” or “Achievable” in the literature.

SMART: Realistic Objectives
Realistic:
Do you have the resources to make the objective happen?
– Are important to stakeholders
– Are adequately resourced
– Can be achieved

Take care on what you say you can do! The January 2009 baseline was 2%. Is a 1%
increase in one year realistic?
SMART: Time-Specific Objectives
Time-Specific:
State when you will achieve the objective
– Provide timeframe indicating when objective will be met

Goal Vs Objective
Goal
• Describe the overall purpose of the program
• Describe broad outcomes and concepts
(what we want to accomplish)
• Expressed in general terms.
Objective
• Specifically state how the goals will be achieved

• Are measurable: Define what you want to see
• Encourage a consistent focus on program functions
Goal Vs Objective
Objective One
Goal Objective Two
Objective Three
Maintain a clear connection between your goals and objectives.

By maintaining this connection, you are articulating your theory of goal attainment.
Goal Vs Objective
Goal Vs Vision
Goals Vision
specific foresight & big picture
measurable Dreams and long term view
Specific deadlines No specific deadlines
achievable Complex
realistic futuristic.
Mostly tangible Intangible

Means
Strategy
- Long-term plan designed to achieve vision, mission and objectives.
- The process of determining appropriate courses of action for achieving

organizational objectives.
- a means to achieve an end;
- a long-term plan;
- an organization’s planned response to the environment.

Means
Tactic
- Short-term plan for implementing strategy.
- Plans designed to help execute major strategic plans
- Shorter than time frame than strategic plans

Strategic Objectives and Plans
Strategic Objectives (Official Goals)

• Where the organization wants to be in the future
• Pertain to the organization as a whole
Strategic Plans
• Action Steps used to attain strategic goals
• Blueprint that defines the organizational activities and resource allocations
• Tends to be long term
Tactical Objectives and Plans
Tactical Objectives
- Apply to middle management

- Goals that define the outcomes that major divisions and departments
must achieve
Tactical Plans
- Plans designed to help execute major strategic plans

- Shorter than time frame than strategic plans
Operational Objectives and Plans
Operational Objectives
- Specific, measurable results expected from departments, work groups, and
individuals
• Pertain to the organization as a whole
Operational Plans
- Organization’s lower levels that specify action steps toward achieving operational
goals
- Tool for daily and weekly operations
- Schedules are an important component
Planning
- the establishment of objectives and the formulation, evaluation and

selection of policies, strategies, tactics and action required to achieve
them
- an essential aspect of good management
- requires forecasts
- Forecast- a prediction about the future course of events or future
trends
Planning
- a review of the current situation (known as a situational audit) and a forecast of

likely changes in the environment;
- a statement of aims, objectives and targets to be achieved;
- a statement of strategies and tactics to be undertaken so as to achieve the

objectives;
- procedures for monitoring progress and, where necessary, taking corrective action
Planning
Planning is important in terms of:

- forcing managers to look ahead, rather than being obsessed with day-to-day
problems;
- forcing them to identify strengths, weaknesses, opportunities and threats (SWOT);
- coordinating activities;
- motivating;
- establishing priorities;
- establishing criteria by which performance is judged
- facilitating delegation;
- reducing the gap between objectives and performance;
- encouraging teamwork;
- identifying inefficiencies and unnecessary duplication of effort;
- forcing managers to be realistic in terms of objectives set.
Business Planning
What is Business Planning
• A business plan is a formal statement of a set of business
goals, the reasons they are believed attainable, and the plan
for reaching those goals. It may also contain background
information about the organization or team attempting to
reach those goals.
Typical structure for a business plan
• Cover page and table of contents
• Executive Summary
• Business description( Vision, Mission, Objective)
• Business environment analysis
• Competitor Analysis
• Market Analysis
• Marketing Plan
• Operations plan
• Financial Plan
• Attachments and milestones
“ Manage your destiny, or someone else will.”
Jack Welch
Session Summery
The best way to predict the future is to create it.

Peter F. Drucker
118
Topic 4
Types of Business
Session Outlines
1. Forms of Organizations
2. Sole Traders
3. Advantages and Disadvantages of Sole Traders
4. Partnership
5. Advantages and Disadvantages of Partnership
6. Company
7. Private vs Public Companies
8. Advantages and Disadvantages of Private and Public Companies
9. Public Corporations
Business Organizations
Private Business Public Sector

• Sole Traders • Government-
• Partnership owned businesses
• Companies
Private Sector
Sole trader
A sole trader is a business owned by one person.
• Unlimited Liability
• Most common form of business
• Easiest to set up
Sole trader: Advantages
•Easy to set up
•Speedy decisions can be made
•Personal control with no requirement to consult;
•Personal contact with staff and customers;
•Profits do not have to be shared
•Business affairs can be kept private
Sole trader: Disadvantages
• Unlimited Liability if the business fails
• Limited sources of finance;
• Restricted growth;
• Limited scope for economies of scale;
• Success depends on the owner’s energy and continuing
fitness;
• The constraints of the lack of time and specialization;
• Full personal responsibility for decisions and for the debts of
the business
• No continuity of existence, with the business dying with the
owner.
Partnerships
• A partnership is a business association between 2 or
more owners of an enterprise.
• Partnership usually have 2 and 20 members
• Each partner is responsible for the debts of
partnership
Partnership: Advantages
• More capital available
• Members of family can join
• Risks and responsibilities spread among
partners
Partnership: Disadvantages
• Disagreements between partners
• Limitation of number of partners (2-20)
• Will need to be re-formed if one partner dies
Companies
• A group of companions who have come together to set
up a business
• the owners of the company are Share Holders
• they appoint a Board of Directors to make the strategicc
decisions.
Companies: Advantages
• Limited Liability: losing only the value of
shareholding in the business
• Legal body
• easier to sell than an incorporated one
Companies: Disadvantages
• Lack of personal interest
• Companies are complex to administer
Regulated by complex Corporations Law Costly
to establish and run
• Directors can be personally liable for the
company’s debts in certain circumstances
Two Types of Limited Companies
Private Companies (ltd) Public Companies (plc)
1. Shares can only be bought direct 1. Shares can be bought and sold
from the company with the on a stock exchange. Anyone can
permission of the board of buy them.
directors.
2. Usually has quite a small number 2. Can have a large number of

or shareholders. May be a family- shareholders (may be millions) all
run business. over the world.
3. Has access to less capital than a 3. Has access to more capital.

public company.
Advantages of Private Company
- the original owners can stop outsiders from
buying up their company
Advantages of Public Company

- access to large amount of capital
In both types of companies, all shareholders are

limited liability.
Public Sector
Business Organization
• all businesses owned by the state and local
government, public services, such as hospitals,
schools and the fire services, and government
departments.
Two main types of business organizations

in the public sector:
• Public corporations
• Municipal enterprises
Public Corporations
- public Corporations are wholly owned by the state
or central government.
• businesses which have been nationalized: they were once

owned by private individuals, but were purchased by the
government
• to keep prices low
• to keep people in jobs
• to offer a service to the public
Public Corporations: Advantages
• Some industries are so important that government
ownership is thought to be essential
• If industries are controlled by monopolies, the natural
monopolies are often owned by the government.
• If an important business is failing and likely to
collapse, the government can step in to nationalize it.
• Important public services, such as TV and radio
broadcasting, are often in the public sector.
E.g. BBC
Public Corporations: Disadvantages
• Profit motive might not be as powerful as in private
sector
• Subsidies can lead to inefficiency as managers will
always think that the government will help them if the
business makes a loss
• As there is no close competition to the public
corporations, a lack of incentive to increase consumer
choice and increase efficiency
• Governments can use these businesses for political
resources, for example just before an election they could
create more jobs.
Session Summery
The best way to predict the future is to create it.

Peter F. Drucker
141
Topic 5
Organizing
management
organization

organization

Session Outlines
1. Definition of organizing
2. Organization Structure
3. Six Elements in designing organization structure
4. Types of organization structure
5. Factors effecting structural choice
6. Types of Organization Cultures
Organizing
- Organizing defined as a function of arranging and structuring
of activities and relationships within a firm. In addition, it is
about allocating resources.
- The deployment of organizational resources to achieve strategic

goals
- Shows division of labor into specific departments and jobs
- Formal lines of authority and mechanisms for coordinating diverse

organization tasks
Organizing
- Organizing function in organizations is
integrated two parts as follows:
• Organizational Structure – Body

• Organizational Culture – Soul
Organizational Structure
- The set of formal tasks assigned to individuals and departments
- Formal reporting relationships
- The design of systems to ensure effective coordination of employees

across department
Six Elements in Designing Organizational Structures
1. Work Specialization
2. Departmentalization
3. Chain of Command
4. Span of Control
5. Centralization and Decentralization
6. Formalization
Work Specialization
Tasks are subdivided into individual jobs
Division of labor concept
Employees perform only the tasks relevant to their specialized function
Jobs tend to be small, but they can be performed efficiently

Departmentalization
How jobs are grouped together is called departmentalization.
Five common forms of departmentalization are used as follows :

1. Functional
2. Geographical
3. Product
4. Process &
5. Customer.
Chain of Command
Unbroken line of authority that links all persons in an

organization
Shows who reports to whom
Associated with two underlying principles
Unity of Command
Scalar Principle
Span of Control
Number of employees who report to a supervisor
Traditional view, about seven subordinates per manager
Many lean organizations today have 30, 40, or even higher subordinates
When supervisors must be closely involved with subordinates, the span

should be small
Supervisors need little involvement with subordinates, it can be large

Span Of Control
Centralization vs Decentralization
Greater change and uncertainty in the environment are usually

associated with decentralization
The amount of centralization or decentralization should fit the firm’s

strategy
In times of crisis or risk of company failure, authority may be

centralized at the top
Formalization
written documentation used to direct and control employees.
includes rule books, policies, procedures, job descriptions, and regulations
creates "red tape" that causes more problems than it solves.
As a practical matter, many organizations are reducing formalization and

bureaucracy
Types of Organizational Structure
Traditional Structures
- Functional
- Divisional
Contemporary Structures
- Team
- Matrix-Project
- Boundaryless (Virtual and Network)
Functional Organizational Structure
Division Organizational Structure
Team
Matrix
Boundary less
Tall Versus Flat Structure
Organization A is Tall Structure And Organization B is Flat Structure

Mechanistic Versus Organic
Factors Affecting Structural Choice
- Strategy
- Size
- Technology
- Environmental Uncertainty
Culture
Power Culture
Role Culture
Task Culture
Person Culture
Culture
Session Summery!
169
Topic 5
Leading
management
organization

organization

Session Outlines
1. Definition of Leading
2. Managers vs Leaders
3. Definition of Leadership
4. Traits of Leaders
5. Leadership Styles
6. Visionary Leadership
Leading
Leading is defined as a function of motivating subordinates, selecting
effective communication channel and influencing individuals or teams as
they work so as to meet target.
Comparing Manager& Leader
Manager Leader
Direction: Planning and Budgeting Creating vision and strategy
Keeping eye on bottom line Keeping eye on horizon
Alignment: Organizing and staffing Creating shared culture and values
Directing and controlling Helping others grow
Creating boundaries Reducing boundaries
Relationship Focusing on objects - Focusing on people – inspiring
producing/selling goods and motivating followers
Based on position power Based on personal power
Acting as boss Acting as coach, facilitator, servant
Personal Emotional distance Emotional connections (Heart)
qualities Expert Mind Open Mind
Talking Listening
Outcomes Maintain stability: creates Create change and a culture of integrity
culture of efficiency
Leadership
- The ability to influence people toward the attainment of
organizational goals.
- Leadership is reciprocal, occurring among people.
- Leadership is a “people” activity, distinct from administrative paper

shuffling or problem-solving activities.
Some Traits of Leaders
1. Drive
2. Desire to Lead
3. Honesty and Integrity
4. Self-confidence
5. Courage
6. Intelligence
7. Job-relevant Knowledge
8. Extraversion
Ethical Leader Vs Evil Leader
Behavioral Leadership Theory
According to University of Iowa Studies, three leadership

styles were explored.
1. Autocratic
2. Democratic
3. Laissez-faire
Behavioral Leadership Theory
Visionary Leadership
Vision – From Third World to First World (World GDP [$276.5 billion (2012 est.) ]
Vision – From ? To ? (GDP [$53.14 billion (2012 est.)].

Leader’s Speeches
Session Summary
Leader is one who knows the way, goes the ways and show the ways.
John C. Maxwell
184
Topic 4
Controlling
management
organization

organization

Session Outlines
1. Definition of controlling
2. The controlling process
3. Types of controlling
Controlling
- Controlling is defined as a function in terms of ensuring that everything occurs

within the parameters of the plan and accompanying principles. The purpose
of control was to identify deviations from objectives and plans and to take
corrective action.
- The process of monitoring, comparing, and correcting work performance.
Controlling
Managers face many control issues
-Controlling work processes
-Regulating employee behavior
-Setting up basic systems for allocating financial systems
-Developing human resources
-Analyzing financial performance
-Evaluating overall profitability
-Quality Control
The Control Process
Determining Comparing Actual

Measuring Actual
Standard for Performance
Performance
Performance Against Standard
Taking Managerial
Action
Type of Control Areas
• Input control
- Materials
- Physical facilities
- Machines
- People
- Finance (budgeting)
• Process control
- Standard Operation Procedures
- Monitoring to ensure if everything is going smoothly
- Ensure not to exceed budget
• Output control
- Product Quality control
- Service level control
- Financial control
- Waste/noise control
Organizational Control
- The systematic process of regulating organizational activities
- Control can focus on events before, during, or after a process
- Three types of control
1Feed forward
Attempts to identify and prevent deviations
 Sometimes called preliminary or preventive control
Focus on human, material and financial resources
2Concurrent
Assesses current work activities, relies on performance standards
Includes rules and regulations for guiding employee tasks and behaviors
Intent to ensure that work activities produce the correct results
3Feedback
Focuses on the organization’s outputs; also called post-action or output control
Organizational Control
Feedback Control
Feed Forward Control Concurrent Control (Solve (Solve Problems after
(Anticipate Problems) Problems as They Happen) they Occur)
• Pre-employment • Adaptive culture • Analyze sales per

drug testing • Total quality employee
• Inspect management • Final
raw • Employee self-control quality
materials inspection
• Hire only • Survey customers
college
graduates
Inputs Ongoing Process Outputs
Controlling Tools
Sesson Summary!
197
Topic - 8
School of Management
Thought
Objective Outlines
1 Early Management
2 Major Approaches to Management
3 Classical Approaches
4 Behavioral Approaches
5 Quantitative Approaches
6 Contemporary Approaches
“Management” has been properly studied only since early 1900s. So the
age of management studies is only around a hundred year.
So didn’t people do management before that?
???
Early Management
- Management is needed to get things done
through other people in the works where no
individual perform alone
-Management was practiced since prehistory
periods.
- People practiced management that required
group activities such as hunting and farming
- The organizations that practiced management
earlier were military, civil and churches
Egypt Dynasties (Approx BC3000 – BC2000)
Great Wall of China (Built between BC220 - BC206)
Shwe Dagon Pagoda (Bulit in around BC 600)
City of Venice
• Major economic & trade center in 1400s
• Developed early form of business enterprise and engaged in many activities
common to today’s organizations.
Industrial Revolution
• Starting in the late 1800s
• Era of replacing human power with machine power
• More Economical
• Started manufacturing goods in factories rather than home
STUDIES STARTED
Major Approaches to Management
Classical Approaches
Scientific General
Management Administrative
Scientific Management
• Frederick Winslow Taylor

- Taylor’s Scientific Management
Principles was born in 1911.
Four principles of Scientific Management
- Finding the best way of doing job by means of
motion study
- Standardization
- Recruitment and training
- Incentive pay
• Frank and Lillian Gilbreht
- Studied Scientific Management
- Followed Taylorism after Taylor’s Scientific
Management Principles appeared.
- Invented some efficiency models for some
workplace to remove wastes (therblig)
Taylor's four principles are as follows:
1. Replace working by "rule of thumb," or simple habit and
common sense, and instead use the scientific method to study
work and determine the most efficient way to perform specific
tasks.
2. Rather than simply assign workers to just any job, match

workers to their jobs based on capability and motivation, and train
them to work at maximum efficiency.
3. Monitor worker performance, and provide instructions and

supervision to ensure that they're using the most efficient ways of
working.
4. Allocate the work between managers and workers so that the

managers spend their time planning and training, allowing the
workers to perform their tasks efficiently.
General Administrative Theory
• Henry Fayol
- Fayol’s 14 Principles of Management was developed
in 1916.
Scalar chain, unity of command, division of labor……
• Max Weber
- German Sociologist
- Invested theory called “Bureaucracy”
Concept of Bureaucracy
- Specialization
- Strict vertical chain of command
- Standardization and formalization
- Documentation
- Everyone know their place and their work (no
less or no more)
Fayol’s 14 Principles of Management
1. Division of work
2. Authority
3. Discipline
4. Unity of Commend
5. Unity of Direction
6. Subordination of individual interests to the general interest
7. Remuneration
8. Centralization
9. Scalar Chain
10.Order
11.Equity
12.Stability of tenure of personnel
13.Initiative
14.Esprit de corps
Behavioral Approach -Concerned about deplorable
- Actual manager who thought
working condition
organizations were social systems - Proposed idealistic workplace
that required cooperation - Argued that money spent
- Believed manager’s job was to
improving labor was smart
communicate and stimulate investment
employee’s high level of effort
- First to argue that organizations
were open systems
- One of the first to recognize that -- Pioneer in field of industrial

organizations could be viewed from psychology – scientific study of
perspective of individual and group people work
behavior - Suggested using psychological
- Proposed more people-oriented tests for employee selection,
ideas than scientific management learning theory concepts for
followers employee training, and study of
-Thought organizations should be human behavior for employee
based on group ethic motivation
Behavioral Approach
Howthorne Studies
• Conducted by Western Electric Company (At Illinois)
• Started in 1924
• Initially designed as scientific management experiment
• Initiated by engineers researched on coruscation

between lighting intensities and worker’s productivity
• Harvard Professor Elton Mayo and his associates joined

in studies
• Found “Social Norms or group standards were the key

determinants of individual work behavior”.
Quantitative Approach
• Evolved from mathematical and statistical solutions developed

for military problems during World War II.
• Inventory Planning (EOQ Model)

• Resource allocation (Assignment Model, Queuing Theory)
• Loading and Routing (Transportation Model)
• Decision Theory (LP Model, Decision Tree Model)
Quantitative Approach (PERT, CPM)
Quanlitative Approach
TQM (Total Quality Management)
• Initiated by W. Edwards Deming &
Joseph M. Juran in 1950s (7 Tools for
Quality Management)
Quality Management
1. Intense focus on the customer
2. Concern for continual improvement
3. Process focused
4. Improvement in the quality of everything the organization does
5. Accurate measurement
6. Empowerment of employees
Contemporary Approach
• Starting in the 1960s, management researchers began to look at what was
happening in the external environment outside boundaries of the
organizations.
• Two contemporary management perspectives evolved – systems and
contingency.
System Approach
• A system is a set of interrelated and interdependent parts arranged in a

manner that produces a unified whole.
• The two basic types of systems are closed and open.
System theory – A set of interrelated parts that function
together to achieve common objectives.
Five elements of the system – input, process, output, feedback
and environment
Hierarchy of system – subsystem, system, super system
Contingency Approach
• The contingency approach (sometimes called the situational approach) says
that organizations are different, face different situations and require different
ways of managing.
• One size doesn't fit all. There is no best way in every situation. It is subject
to contingencies
• Universalist view: There is one best method, that can apply in every
situation
Popular Contingency Variables
Organization Size
Routineness Task Technology
Environment Uncertainty
Individual Difference
Peter Senge’ s Learning Organization
• Learning organization encourages organizational
learning that is everyone in the organization
engage learning to get new knowledge, sharing,
capturing and changing the organization itself to
adapt with changing environment
• Encourage to people to experiment new things,
tolerating failures, learning from failures, sharing
new knowledge, capturing knowledge and
leading to change organization
• Flexible and team structure, open culture,
learning and changing new practices
Session Summery
The productivity of work is not the job of the worker but the manager.
Peter F. Drucker
225

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Topic

-Introducing with fundamental Business terms and concepts

- Training on study skills

- Introducing the policies, procedures and practices of BTEC program

- Empowering on the sprit of leadership

- Polishing English Language Skills

- Other Suggested Materials

(Referring back to Program Book)

- Group work and discussions

1.4 Construct appropriate organizational structure for a selected organization

1.5 Develop suitable leadership style for a selected organization

1.6 Explain 3 different types of controlling function for a selected organization

- The purpose of Group Assignment in Foundation program is to get teamwork

- Announce once per term

- 70% of total attendance is required to be fulfilled in every announcement

- Class teacher is empowered the ultimate authority on accounting attendance in

I hear and I forget. I see and I remember. I do and I understand.

1.3 Produce Vision, Mission and SMART Objectives for a selected

1.4 Construct appropriate organizational structure for a selected organization

1.5 Develop suitable leadership style for a selected organization

1.6 Explain 3 different types of controlling function for a selected organization

LEVELs of Business Activity

 Art of getting things done through people.

 Attainment of organizational goals in an efficient and

Efficiency (Means) Effectiveness (Ends)

Management Strives for:

- Initially categorized as five functions: Planning, Organizing,

- Then, condensed to four functions: Planning, Organizing,

Production Manager HR Manager Marketing Manager Finance Manager

Dept A Dept B Engineering Market Research Sale Manager

Supervisor Supervisor Sales team A Sales team B

– Ability to motivate, facilitate, coordinate, lead, communicate, and

– the understanding of and proficiency in the performance of specific

•Monitor •Figurehead •Entrepreneur

1.3 Produce Vision, Mission and SMART Objectives for a selected

1.4 Construct appropriate organizational structure for a selected organization

1.5 Develop suitable leadership style for a selected organization

1.6 Explain 3 different types of controlling function for a selected organization

• It can be divided into two:

- Macro Environment and

• Customers, Competitors, Suppliers, Shareholders, Employee &

• determine the organization’s success

• In the case of bankruptcy, shareholders lose

• Labor Market - The people available for hire

• 3 major types of financial institutions:

• consumer purchasing power, unemployment

- the natural features of a country such as its

• lack of patent protection

1.3 Produce Vision, Mission and SMART Objectives for a selected

1.4 Construct appropriate organizational structure for a selected organization

1.5 Develop suitable leadership style for a selected organization

1.6 Explain 3 different types of controlling function for a selected organization

- It has two main things:

Coca Cola Vision

• The purpose of the existence of the organization. It describes the organization’s

- outlines clearly the way ahead for the organization;

- provides information and inspiration to their employees;

- enhance employee motivational and organizational performance;

- identifies the business the organization will be in the future;