QUALITY MANAGEMENT NORSHILLA BINTI ABDU RASIM EMILIA ENGGOH POLITEKNIK KOTA KINABALU SYSTEM
Authors: Norshilla Binti Abdu Rasim Emilia Enggoh Civil Engineering Department Politeknik Kota Kinabalu QUALITY MANAGEMENT SYSTEM
POLITEKNIK KOTA KINABALU NO. 4 JALAN POLITEKNIK, KKIP BARAT, KOTA KINABALU INDUSTRIAL PARK, 88460 KOTA KINABALU, SABAH. Tel : 088-401800 Fax : 088-499960 https://polikk.mypolycc.edu.my/ © Politeknik Kota Kinabalu First Published, 2023 Published by: QUALITY MANAGEMENT SYSTEM All right reserved. not part of this publication may reproduced or transmitted in any form by any means, electronics or mechanical including photocopy, recording or any information storage and retrieval system, without permission in writing from the authors. Topic 1 Fundamental of Management
This book has been prepared in accordance with the syllabus content of the DCW40192 Quality Management System course, Department of Polytechnic and Community College Education, Ministry of Higher Education Malaysia. This textbook can be used as a reference for educators and students pursuing studies in Diploma Wood-based Technology in Malaysian polytechnics. This book contains six main chapters; Introduction to Management, Quality Planning, Organizing, Leading and Motivation, Controlling, and Quality. Quality Management System strives to provide knowledge on management systems that employ planning, benchmarking, organization structure, human resource management, leadership, and the importance of controlling. Students are also exposed to the concept of quality management. The authors hope that the contents of this textbook will help educators and students to better understand the fundamentals of quality management systems. It is the authors’ hope that what is discussed in this book can benefit and contribute to the field of education, society, and nation, Insya Allah. PREFACE
Table of Contents 01 Introduction to Management 02 Quality Planning 03 Organizing 04 Leading and Motivation 05 Controlling 06 Quality
1 INTRODUCTION TO MANAGEMENT 1.1 Fundamentals of Management 1.2 Management Levels 1.3 Managing Skills 1.4 Manager Roles 1.5 Management Theories
Planning Defining goals, formulating a strategy, and creating sub-plans to coordinate actions Organizing Create task and authority connections that enable people to collaborate Controlling Observing actions to ensure that they are carried out as intended Leading Directing and inspiring all parties involved, as well as resolving conflicts 1.1 Fundamentals of Management Management consists of planning, organizing, leading, and controlling human and other resources to achieve organizational goals effectively and efficiently. Definition of Management Topic 1 Fundamental of Management 01 Efficiency refers to how effectively or efficiently resources are used to accomplish a task. For instance, you have higher efficiency if you produce more for a given input. Effectiveness is a measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved. Resources are organizational assets. People Skills Knowledge Information Raw materials Machinery Financial capital
creating rules and regulations giving some members supervisory control over other members forming work teams writing job descriptions Managers work in organizations. Managers are individuals who are hired to influence, lead, and train employees in an organization. An organization is a structured group of people who work together to achieve a common goal. All organizations develop a systematic structure that defines and limits the behavior of their members. A developing structure may include: Organization members are divided into two main categories: operatives and managers. Managers are classified as top, middle, or first-line managers. Managers are individuals in an organization who direct the activities of others. Operatives are individuals who work directly on a job or task and are not in charge of managing the work of others. Topic 1 Fundamental of Management 01 Top manager Middle manager Lower manager Operative 1.2 Management Levels
Middle manager Middle managers are directly responsible for the performance of their subordinates, who are lower-level managers. One of the main responsibilities is to guide employees in implementing activities related to organizational policies. Oversee determining the best approach to employing departmental resources to achieve goals. Middle managers in organizations may hold positions such as Department Agency Head, Project Leader, Unit Chief, District Manager, Dean, or Division Manager. Top manager Top managers are positioned at the highest level in the management hierarchy. Top managers are responsible for the overall management and administration of the organization. Responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members. Top managers typically have titles such as President, Vice President, Managing Director, Chief Executive Officer, or Chairperson of the Board. Topic 1 Fundamental of Management 01 Lower-level manager Lower-level managers are usually called supervisors. They may also be referred to as unit coordinators, coaches, or team leaders. They oversee the daily operations of operational workers. Therefore, they determine the success of the organization because their main responsibilities are to monitor and ensure daily operations are carried out without problems.
Conceptual Skills Conceptual skills refer to the mental ability to analyze and diagnose complex situations. Conceptual skills involve the manager’s thinking, information processing, and planning abilities. Interpersonal Skills Interpersonal skills encompass the ability to work with, understand, mentor, and motivate other people, both individually and in groups. As managers do things through other people, they must have strong interpersonal skills to communicate, motivate, and delegate. Technical Skills Technical skills are the understanding of and proficiency in performing specific tasks. Technical skills include the understanding of procedures, techniques, and equipment used in specialized roles such as engineering, manufacturing, and finance. Management skills identify those abilities or behaviors that are crucial to success in a managerial position. Management skills are skills that a manager must possess. There seems to be overall agreement that effective managers must be proficient in conceptual, interpersonal, and technical skills. Topic 1 Fundamental of Management 01 For top managers, these abilities tend to be related to knowledge of the industry and a general understanding of the organization’s processes and products. For middle- and lowerlevel managers they are related to the specialized knowledge required in the areas with which they work, for example, finance, human resources, information technology, manufacturing, computer systems, law, marketing, and the like. 1.3 Managing Skills
Topic 1 Fundamental of Management 01 Interpersonal In this role, managers help to create and build good relationships between managers and other managers as well as between managers and subordinates. Managers are responsible for providing guidance and oversight to personnel as well as the organization as a whole. Figurehead Managers appointed as the heads of departments, heads of organizations, or heads of branches are capable of leading other individuals and areas always needed by employees in all events or activities organized by the organization. Leader Managers play the role of leaders by guiding, motivating, and encouraging employees to work harder. Public relation officer Managers also need to establish relationships with external parties to obtain information about developments that occur outside the organization. Managers must interact with other managers and parties such as the local authorities, suppliers, and consumers. Information giver Managers are responsible for receiving and sending information to employees. Roles related to the duties required to gather and convey information during the organization's management process. Observer Managers are responsible for obtaining information on current issues, changes, opportunities, and problems in the internal as well as external environments of their organizations. Managers can obtain information by attending seminars, conference, or through indirect communication. Disseminator of information Managers must make all information available to those who require it. But they must first filter the information to ensure that it is accurate and can be used by employees. Sends information to other organization members, sends memos and reports, makes phone calls, and types emails. Spokesperson Managers who are spokespersons for their organization disseminate information such as policies, action plans, and the organization’s result to individuals inside or outside their organization. Informs outsiders through media speeches, reports, and memos. Decision maker Managers play an important role in making wise decisions on each activity that is to be implemented in the organization.Roles associated with methods managers use to plan strategy and utilize resources. Entrepreneur Improvement projects are started by managers, who also assign new ideas and responsibility for them to others. Disturbance handler Takes corrective actions during disputes or crises, resolves conflicts among subordinates, and adapts to environmental problems such as economic crises. Resource allocator Managers have to determine how, to whom, and when organizational resources will be allocated. Allocating resources involves the allocation of money, equipment, and other assets, resources, schedules, budgets, and set priorities. Negotiator As negotiators, managers represent their units or organizations in negotiations in their areas of responsibility. Negotiations can only be made by managers because they have the information and power to make decisions. A role is a set of expectations for a manager’s behaviors. Managers must play a certain role, and they are evaluated according to their performance. 1.4 Manager Roles
a) Scientific Management (by Frederick Taylor) Conducting scientific studies on each task to discover the best way to complete the work. Employing suitable employees carefully and providing training to increase employees’ skills through a scientific approach. For example, the manager is accountable for job planning, whereas employees are responsible for task execution. Implementing a fair reward system. Incentives in the form of pay, bonuses, and rewards. b) Administrative Management (by Henri Fayol) According to Fayol, every organization must be managed according to five management functions:that is planning, organizing, commanding, coordinating, and controlling Fayol also outlined 14 general management principles to guide managers in managing an organization. c) The Bureaucratic structure (by Max Weber) Bureaucracy refers to a formal system that is formed in the administration of an organization to create efficiency and effectiveness in organizational operations. Max Weber introduced this theory, which emphasized the formation of a management hierarchy whereby rules and authority are clearly established. Characteristics of a Bureaucratic structure is skills specialization of workers, promotion and career development based on performance, clear management hierarchy, fairness in nature, and usage of organization rules and procedures. The development of management theories and principles came from the Industrial Revolution and factory growth in the early 1800s. Individuals began to think about ways to operate factories more effectively, focusing on techniques to solve specific problems. Later individuals began to develop broader principles and theories that formed the basis of the major viewpoints of management, such as classical, behavioral, and contemporary. It is called “classical” because it includes early works and contributions, making up the core field of management. This theory emphasizes managing work and running organizations more efficiently. 1.5.1 Classic Theory Topic 1 Fundamental of Management 01 Management theories explain the key elements in the practice of management to identify the most effective management methods. Management theories are a set of broad rules that guide managers in managing an organization. 1.5 Management Theories
The study of how managers should behave to motivate employee, encourage them to perform at high levels, and be committed to the achievement of organizational goals. Supportive leadership and managerial focus on group support. Direct attention to the human element of organizations. It operates on the premise that increased worker satisfaction will bring greater performance. The organization can be improved by recognizing and addressing the needs of the individuals that make up that organization. During the Industrial Revolution in the early 1920s, when productivity was the main concern of business, the Human Relations Theory was first developed. Elton Mayo launched his experiments (the Hawthorne studies) to demonstrate the importance of humans in production, not machinery. The Hawthorne Studies showed that social variables like team spirit, a sense of belonging, and excellent relationships among team members had an impact on an increase in the level of production. 1.5.3 The Human Relations Management Theory Topic 1 Fundamental of Management 01 1.5.2 The Behavioral Management Theory Leaders Followers Situational factors The ability of the leader to lead is dependent on a variety of situational elements, including the leader's preferred style, the capabilities and behaviors of the followers, and a variety of other situational factors. According to contingency theory, these activities depend on both internal and external circumstances. There is no single theory of contingency management. Assumes there is no single best method of management. The effectiveness of leadership depends on: 1.5.4 The Contingency Management Theory Elton Mayo
The Systems Theory assumes that the organization is a system that comprises various divisions related to one another that have common goals. Topic 1 Fundamental of Management 01 As a system, an organization receives inputs (information and human resources), then changes these inputs through a transformation process (technology and management skills) to produce outputs (products or services). This theory emphasizes the need for organizations to interact with their internal and external elements to ensure their success. According to this view, an organization will be more successful if it operates as an open system, constantly interacting with and receiving feedback from its external environment. 1.5.5 The System Management Theory Input Transformation process Output Feedback Internal environment External environment Input Resources utilized to create a good or service, including people, things, money, and information. Transformation process An organization’s managerial and technological abilities are used to change inputs and outputs. Output The organization’s products and/or services produced. Feedback Information about the organization's outputs or transformation process that influences decision-making and input selection during the following cycle. Environment The environment in which the organization operates, including social, political, and economic pressures.
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Q 2UALITY PLANNING 2.1 Management planning 2.2 Strategic planning 2.3 Time management planning 2.4 Decision making 2.5 Benchmarking
2.1 Management planning According to Stoner, Freeman, and Gilbert (1995), planning is the process by which managers establish organizational objectives and select the best course of action to meet those objectives. Planning is the process of analyzing relevant current or past information with the purpose of measuring and forecasting the future in order to achieve organizational goals. Definition of planning Topic 2 Quality Planning 01 Planning The first step in management is planning. The planning process enables other management functions, such as organizing, leading, and controlling, to be performed in the organization. The foundation of management is planning; sometimes it is called the primary managerial function. Planning involves defining the organization’s goal (what to do) and establishing strategies (how to it) to achieve the goal. Objective Plan Identify the specific results or desired outcomes that you want to achieve A list of action steps to be taken in order to achieve the goals Planning is the process of establishing goals and determining how to achieve them Why do managers plan? Set the standards to facilitate control Provide direction to managers and non-managers Reduce uncertainty and the impact of change Minimize waste and redundancy
In formal planning, clear goals for a specified time period are defined. These goals are documented and communicated with organizational members to remove ambiguity and develop a shared understanding of what needs to be done. Finally, precise plans for accomplishing these goals are in place. Involve middle and lower managers in making plans; involve top management only at critical points in the planning process. Involves middle and lower managers in developing plans. Planning should include realistic goals and alternatives for achieving them. The plan should start on a small scale and be extended only when the workers have learned the technique and have become convinced of its usefulness. Making new plans and taking new actions Identifying assistance and resistance Determine the current situation Re-evaluate goals Define objectives /or set goals Steps in the planning process Topic 2 Quality Planning 01 Guidelines for effective planning Specific and measurable Cover key result areas to achieve Defined time period to achieve Linked to rewards and bonuses Challenging but realistic or achievable
The Importance of Planning Planning helps the organization understand the business environment, for example, the types of barriers that need to be encountered, the competition pattern that is faced, and the types of threats. Topic 2 Quality Planning 01 Identifying opportunities Planning helps managers identify business opportunities, thereby increasing the organization’s competitiveness. Identifying suitable alternative actions Planning enables managers to identify suitable alternative actions according to the set goals. Thus, the best alternative can be selected and implemented. Reducing risks Planning reduces the risks faced by the organization in an ever-changing business environment. Managers must foresee the future, make adjustments, assess the impact of the changes, and take appropriate action to address the organization's vulnerabilities through planning. Saving costs Through planning, organizations can save costs as resources can be used efficiently and effectively. Facilitating the achievement of goals Facilitating the achievement of goals: Good planning enables organizations to achieve their set goals efficiently and effectively. Providing guidance Planning is important to provide guidance on the purpose of an activity performed by an organization. Provide directions Planning is important to determine a direction for each manager in the organization. Understanding the environment Facilitating coordination Planning helps managers coordinate all activities and resources needed to achieve organizational goals. Assuring not deviate from initial objectives Planning can ensure that managers do not get distracted from achieving the organization’s original goals.
Strategic planning involves setting long-term goals and objectives for an organization and selecting suitable actions to allocate organizational resources in order to achieve these goals. Strategic plans are plans that apply to the entire organization (broad), establish the organization’s overall objectives, and seek to position the organization in terms of its environment. Strategic planning is conducted for a period of more than five years. Performed by the top manager. For example, the CEO of a Malaysian corporation aims to create a Perodua VIVA next year (strategic planning). Based on strategic goals, managers and their subordinates must make suitable plans for their own departments. Tactical planning is carried out by middlelevel managers or tactical managers in order to attain strategic goals. This type of planning involves a shorter period of time, for example, one to five years, also known as mid-term planning. Tactical planning clearly specifies the roles and contributions of each department or unit in attaining the top-line manager's strategic goal. It specifies the details of how the overall objectives are to be achieved. Operational planning involves a limited or narrow scope, such as job units or specific individuals within the organization. This type of planning offers detailed guidance on the roles and responsibilities of the relevant parties in the organization in achieving operational goals based on the implementation of strategic and tactical planning. This plan was developed by first-line managers. Operational planning is performed for a duration of one year or less. Long-term plans are those that go beyond five years. Strategic goals and plans are part of longterm planning. Top management is involved in the development of long-term plans. For example, site expansion, opening new branch offices, entering a new market, stock, bond, and asset investment. A short-term strategy is one that lasts 3 to 6 months or less than a year. Short-term planning includes operational goals for specific departments and people. Supervisors and team leaders develop these plans. Additionally, they must provide reports to their department's management. For example, plans for basic training sessions for newly recruited leaders as well as plans for training roundtable staff members. Strategic Plan Topic 1 Fundamental of Management 01 Types of Plans Tactical Plan Operational Plan Long-term Plan Short-term Plan
Directional plans are adaptable plans that outline broad principles; they are preferred in a dynamic environment where management must be adaptable to deal with unforeseen developments. For example, the Sales Manager might give his employees a general idea of the desired outcome and then leave it up to them to figure out how to get there. They may choose any form of practice they like. As a result, it is possible to claim that the Directional plans are outcome-focused. Specific plans are those that have clearly stated objectives and allow no room for interpretation. Such plans must have clearly stated objectives and cannot be misleading. For example, the Production Manager would advise his employees on what, when, where, how much, and by whom the assignment would be completed. Thus, it is possible to describe the specific plans as processfocused. A single-use plan concentrates on the implementation of activities to overcome complex problems that require specific attention. Are used to meet the needs of a particular or unique situation. This plan is implemented once and will not be repeated in the same form in the future. Usually implemented in a short period of time. Examples of the single-use plan are program, project, and budget. Example: National Forestry Program, Low-cost Housing Project, Introducing the Advance Diploma Course. A standing plan is one that is repeated on a regular basis. It is an organization’s policies, procedures, and rules. E.g.: No smoking rules in a certain area, wearing proper work attire when handling machines, drug-free workplace policies, Continuous Improvement ISO. Topic 1 Fundamental of Management 01 Types of Plans Directional Plan Specific Plan Single-Use Plan Standing Plan
Managers at each management level will accomplish different objectives. This figure shows the hierarchy of planning and the three types of plans on each level of the hierarchy. This is an ideal scenario. The responsibility for planning at various management levels is very different. Large organizations always have skilled staff to help in the planning process. Meanwhile, in a small organization, only the managers and a few important employees are involved in the process. Hierarchy of Planning Topic 2 Quality Planning 01 Strategic planning involves a span of several years or decades, while tactical and operational planning is performed for a shorter time period. Tactical plans (Middle Management, major division functions) Operational plans (Lower Management, department individuals) Strategic plans (Senior Management, organization as a whole) Mission Statement The differences between strategic planning, tactical planning, and operational planning are in terms of the time period, scope, and level of goal. Time period Scope Level of goals Strategic planning will influence the overall activities of the organization, while operational planning and tactical planning cover a limited scope of activity. Strategic goals are more general and straightforward than operational goals. These objectives help employees gain a clear and complete understanding of the overall organizational process.
Managers must monitor and maintain their plans once they have completed all five elements of the planning process, developed particular plans, and put those plans into action. Through the controlling function, managers observe ongoing human behavior and organizational activity, compare it to the outcome and action statements formulated during the planning process, and take corrective action if they observe unexpected and unwanted deviations. Thus, planning and controlling activities are closely interrelated. Planning feeds control by establishing the standards against which behavior will be evaluated during the control process. Monitoring organizational behavior (the control activity) provides managers with information that helps them prepare for the future planning period it gives significance to the planning process's awareness phase. In the Deming cycle; managers evaluate the outcomes of planned actions by incorporating organizational learning into the planning process. Activities that link planning and controlling. Planning and Control Cycle Topic 2 Quality Planning 01 Check Monitor the outcomes of the intended course of action; at this point, organizational learning about the success of the plan occurs. The Deming Cycle Plan: Using the model outlined earlier, design a plan Do Carry out the plan Act: Act on what was learned, modify the plan, and the cycle starts over as the organization seeks for continual learning and improvement.
Identify the organization’s current mission objectives and strategies Opportunities Threats External analysis Strengths Weakness Internal analysis Formulate strategies Implement strategies Evaluate results 2.2 Strategic planning Topic 2 Quality Planning 01 Strategic management, also known as strategic planning, is primarily about making decisions about what the company will do and won't do to achieve particular goals and objectives, where such goals and objectives lead to the achievement of a stated mission and vision. Strategic planning is the process of identifying the general goals and objectives of an organization as well as how they are to be accomplished. The formulation and execution of a company's strategy are managed through the strategic management process. The strategic management process SWOT analysis Mission and vision Strategizing Objectives Planning Organization design Culture Social network Leadership Decision making Communications Group/teams Motivation System/process Strategic human resources Organizing Leading Controlling Strategy formulation Strategy implementation
2.3 Time management planning Topic 2 Quality Planning 01 Organizational strategies and goals have established time boundaries. Time horizons are short-term, medium-term, and long-term. In the modern day, short-term results are prioritized over long-term planning because the environment is so unpredictable. Today 1-2 year 3 year 4-5 year Short-term planning Operational, tactical goals Intermediateterm planning Tactical goals Long- term planning Tactical goals, strategic goals Long-term planning Strategic goals
Judgment Judgment is the process of weighing options. Choose The process of deciding which particular alternative to using. 2.4 Decision making Topic 2 Quality Planning 01 Judgment can occur without being followed by choice. However, some level of judgment will always precede a choice. Every day, organizations must make several types of decisions related to the production of new products, the purchase of new machinery, investment in new projects, and hiring new employees. Decision-makers are individuals or groups of individuals who are responsible for deciding based on the available alternatives. Managers must make several types of decisions under different conditions. For example, managers must investigate whether new equipment is required in the administration building or determine the salary scale of new employees. These decisions require different methods of analysis. The types and quantities of information obtained will influence the decisions made by managers. The approach that must be used to make decisions depends on the current condition. Decision-making is the process of selecting the best option from among several choices. Decision quality can be improved if all alternative information is gathered and given to the manager. The term "decision" refers to "choosing between alternatives". Choosing among alternatives is done according to a certain approach known as the "decision-making process." Definition of decision making Decision-making is an essential part of being an effective manager. Every day, managers make dozens of decisions. Many are fairly small, while some are extremely large. How well a manager makes decisions determines how successful the manager will be. A decision is a choice among options, and decision-making is the act of selecting one option over another. Good decision-making should be a process. It is the process of recognizing issues and finding solutions, or it is the process of spotting opportunities and seizing them. There are two parts of decision making process:
Types of Decisions Topic 2 Quality Planning 01 Condition of decision-making Programmed decisions are made based on a set of policies, rules, and procedures. A decision made in response to a situation that is routine, recurring, or repetitive. Structured problem, which is straightforward, familiar, easy, and completely defined. Example: the amount of salary that needs to be paid to new employees, when starting the machine. A decision made in response to a situation that is unique generates a unique response. This approach is suitable forsolving problems that cannot be solved based on organizational policies. Unstructured problem, which is new and unusual and for which information is ambiguous and incomplete. Example: deciding to get the latest machinery for your organization. Programmed decision Non-programmed decision Under conditions of certainty, managers will be able to predict what will happen in the future. Managers have real information that is accurate and reliable. Example: Managers who want to invest a certain amount of money in the bank would know the total returns earned in a certain period as the interest rate has been determined by the bank. Certainty condition Conditions whereby decisionmakers are unsure or unable to predict the outcome of an action. They must be able to think critically, and make their own judgment based on past experiences. Example: Managers decide to hold mass hiring for their organization, assuming that new employees will help increase the organization’s sales. Uncertainty condition Risky conditions refer to conditions whereby managers would only be able to roughly predict the outcome of implementing the alternative due to limited knowledge and information. Example: The effectiveness of a marketing strategy that was planned to introduce new products or services will not be known until the strategy is implemented. Risky condition
Characterized by a person's predisposition for using external data and facts to guide decisions and actions through reasonable, logical thinking. This thinking style is distinguished by a preference for internal sources of information (feelings and intuition) and processing this knowledge with internal insights, feelings, and hunches to drive decisions and actions. Decision-making thinking style Topic 2 Quality Planning 01 Decision-making styles Linear Thinking Style Non-Linear Thinking Style Directive Style Prefer simple, clear-cut solutions, frequently make quick decisions, dislike dealing with a lot of information, and may only evaluate one or two choices. Efficient, logical people prefer to base conclusions on current rules and practices. Analytical Style Prefer complex solutions based on as much data as possible. Carefully evaluate alternatives, frequently making judgments based on objectives, reasonable facts from management control systems, and other sources. Conceptual Style Likes to consider a wide range of knowledge and numerous broad choices and is more socially oriented than analytical. Rely on both people and systems for information. Problems are more likely to be solved creatively. Behavioral Style Adopted by managers who care deeply about others and prefer to talk to people oneon-one to understand their feelings about difficulties and the impact of a particular decision on them.
Decision-making process Topic 2 Quality Planning 01 Identify the problems Each decision begins with a problem. Recognize that there is an issue and that a decision must be made. While some people simply respond to problems, smart managers work to comprehend them. Making decisions is ultimately a problem-solving process. This entails comprehending the situation and attempting to resolve it. Three tasks must be completed by managers during the problem investigation stage: define the problem, make an objective decision, and determine the cause of the problem. Form alternatives Managers must create a list of potential actions that might be taken to address the issue. When there are multiple options, managers can choose the best one to address a problem. It necessitates managers to explore creative and imaginative options. "Brainstorming" is an example of creative thinking that can occur between management and their employees. During brainstorming, everyone comes up with as many alternatives as they can. Diagnose and analyze the alternative An evaluation will be made based on the strengths and weaknesses of each alternative. The evaluation process becomes difficult when managers are faced with uncertainty, a lack of capital, and various intangible factors. The alternative that is selected must be evaluated according to the criteria and the set values. Select the best alternative After evaluating the effectiveness of each alternative, managers must determine the best alternative that is to be implemented in the organization. Each alternative should be evaluated systematically according to the criteria: feasibility, quality, acceptability, cost, reversibility, and ethics. Implement the decision After the best alternative is identified, managers must make a plan to fulfill the requirement and solve the problems that might occur while implementing the alternative. The implementation of a decision not only involves giving instructions to employees, but also involves allocating resources (raw material and cash), duties, and time. The manager must set a budget or schedule that has been approved by the decision-maker prior to this. This will enable them to measure the progress of the implementation. Evaluate the decision Decision-makers or managers gather information to determine how well the decision was implemented and whether it was effective in reaching its objectives. Evaluating the decision's consequence or result to determine whether the problem was resolved. If the evaluation reveals that the problem remains, the management must determine what went wrong. Take follow-up action After assessing the alternatives, the final stage is to assess the action. This is done through feedback. Collect the best feedback. If the problem is not fixed, management must repeat the procedure and consider additional options. Feedback is essential because decision-making is a never-ending process.
The terms "ethics" and "morals" refer to our perceptions of what is good against bad, morally upright versus immoral. Ethics and morals are implicitly related to our relationships with and impact on others Therefore, it's critical to consider whether our choices will have a positive or negative effect. Ethical Decision Topic 2 Quality Planning 01 Group Decision Making Has the ability to take into account various viewpoints, concepts, preferences, beliefs, and biases Reduces the influence of bias on the outcome. Each participant contributes unique information or expertise to the group, as well as various viewpoints on the topic. As group members discuss the available possibilities, more options are often developed, resulting in increased intellectual stimulation. More creativity results in a more effective decision. Involving those who will be affected by a choice in the decision-making process will provide those people with a better grasp of the difficulties or problems at hand as well as a stronger commitment to the solutions. Can create conflict. There is an imbalance of power or influence inside the group, which prevents those with opposing viewpoints from speaking up (suppression of dissent). Groups may also experience groupthink, which is the tendency to avoid evaluating of ideas that the group supports. If members of the group are not actively offering their thoughts and viewpoints, the group will not reap the benefits of group decision-making. Requires more time than individual decision-making since everyone must exchange ideas about the many options. Advantages Disadvantages
Benchmarking process planning Gather and collect the necessary data. Examine the data and results. Create and implement improvements Benchmark is a quantified, best-in-class achievement; a reference or measurement standard for comparison; this performance level is acknowledged as the gold standard for a given business process. Benchmarking consists of identifying, learning, and adapting great practices, methodologies, and procedures from any business, anywhere in the globe, to assist an organization in improving its performance. Benchmarking is not a quick fix for a problem. Instead, it is a step-by-step approach to resolving the issue. 2.5 Benchmarking Benchmarking is the process of comparing one's management processes and performance measures to industry best practices. A process of identifying and studying the best practices that result in improved performance. Definition of benchmarking Topic 2 Quality Planning 01 Why are others better? How are others better? What can we learn? How can we catch up? How can we become the best in our industry? Benchmarking
Types of benchmarking Topic 2 Quality Planning 01 Internal benchmarking Internal benchmarking usually involves various departments or processes inside an organization. This is an evaluation of how well different organizational divisions or units perform. One benefit of this kind of benchmarking is the simplicity of data collection. Since many of the hidden factors (enablers) do not need to be carefully examined, comparing data is also easier. For example, the departments will likely have a similar culture, the organizational structure will be comparable, and personnel skills, labor relations, and managerial attitudes will be similar. Due to these similarities, comparing data is quick and simple. The most significant disadvantage of internal benchmarking is the lack of a significant breakthrough in improvement. Competitive benchmarking Competitive benchmarking or similar industries use external partners in similar industries or processes. Although this process may be difficult in some industries, a lot of companies are willing to share information. Competitors are employed in numerous benchmarking efforts. It is a process-based comparison with a product focus. Functional benchmarking A comparison of certain business functions between two or more firms. A company will concentrate its benchmarking efforts on a single function in order to improve its performance. Businesses seek to benchmark with partners from various business sectors or areas of activity in order to improve similar functions or work processes. This type of benchmarking can lead to innovation and remarkable gains Generic benchmarking The primary purpose of generic or best practice benchmarking is to identify the procedure that is without a doubt the best one. This search, which spans industry sectors and geographical areas, offers the potential to design game-changing strategies for a specific industry. Determining a best practice is one of the keys to success with best practice benchmarking. Good techniques that have been successful elsewhere are considered best practices.
Benefits of Benchmarking Topic 2 Quality Planning 01 Improves Learning Methodology Benchmarking allows for the development of ideas and the exchange of proven business methods, which can be viewed as a learning experience for businesses. Launches Technological Upgrading By using this tactic, businesses learn about the newest methods and tools used by industry leaders. Companies can plan properly to upgrade their technology in order to stay competitive. Enhance Company Standards The company analyzes and researches the competitors' standards. This enables the company to enhance its production and product standards accordingly. Enhances Work Quality It leads to organizational growth since it enhances overall output quality and minimizes the likelihood of errors due to the standardization of company activities. Adapt to Competition Understanding the business and strategy of competitors allows the corporation to build more effective plans. It also allows the company to stay up to speed on the latest innovations and technologies, allowing it to outperform its market competitors. Improves Efficiency This approach boosts the overall efficiency of the workforce since the standardization of work drives them to do better without making many mistakes. Increases Customer Satisfaction: Through benchmarking, the company collects enough data about the requirements and desires of its customers through customer feedback. This data assists the organization in improving the client experience and satisfaction level. Help Overcome Weaknesses These techniques assist the organization in identifying its flaws and striving to overcome them in order to achieve the desired goals.
Limits of Benchmarking Topic 2 Quality Planning 01 Insufficient information The company is sometimes unable to obtain sufficient information for benchmarking. As a result, the company's performance is improperly or inadequately compared to that of its competitors. Increases dependence Companies tend to rely on the strategies of other companies to succeed. In the process of following the market leaders, people lose their individuality and uniqueness and begin to follow the road shown by others. Insufficient knowledge Companies may use benchmarking just for the sake of doing so, rather than determining its necessity. It fails to recognize its own flaws while keeping an eye on how its competitors operate. Copying others Some firms fail to recognize the true aim of this strategy and begin to mimic their competitors in every way. Even worse, this can cause the company to fail. Incorrect comparison It necessitates a comparison between two or more companies that compete in the same industry. However, companies sometimes draw inappropriate comparisons, resulting in bad benchmarking. An expensive affair Requires a team of experienced professionals with outstanding analytical skills and subject matter understanding. increasing the company's administrative costs as a result. There are situations when capital expenses are required even for the adjustments themselves.
REALLYGREATSITE.COM PAGE 03 Topic 2 Quality Planning 01 Tutorial Questions 4. How satisfied are you with our company? A. B. C. D. 5. How satisfied are you with our company? A. B. C. D. 1. How satisfied are you with our company? B. False A. True 2. How satisfied are you with our company? B. False A. True 3. How satisfied are you with our company? B. False A. True 6. How satisfied are you with our company? A. B. C. D.
OR 3GANIZING 3.1 Organizational culture, structure, and design 3.2 Human Resource Management 3.3 Organizational Change and Innovation
3.1 Organizational culture, structure, and design Organization is the detailed structuring of work and the working environment to complete the given activities effectively. Definition of Organization Topic 3 Organizing 01 The organization serves as the foundation for which the entire management structure. The organization is associated with the development of a framework in which entire work is separated into manageable components to aid in the fulfillment of objectives or aims. It is a social unit of people that is systematically formed and controlled on a continuous basis to meet a need or pursue common goals. It is a structure used by an organization to set up its channels of authority, manage communications, and distribute responsibilities. It is the formal structuring of jobs within a company. The Organizational Structure Every business has a management structure that establishes the linkages between functions and positions, as well as subdivides and delegated duties, responsibilities, and power to carry out prescribed tasks. The organization is associated with the development of a framework in which the entire work is separated into manageable components to aid in the fulfillment of objectives or aims.
Departmentalization Centralization and Decentralization Chain of command Element of organization Work Specialization Span of control Formalization It shows the departments or units at each management level in the organizational hierarchy Definition of Organizing Organizing is an efficient way of managing organizational resources in order to achieve the planned goals and objectives. Organizing is the process of allocating employment, physical resources, or financial resources inside an organization through the coordination of human resources and organizational resources. Topic 3 Organizing 01 The importance of organizing It shows the job division or specialization It shows the duties and responsibilities of each department in an organization It displays how managers and employees report to one another It displays the different job types carried out in an organization It shows the grouping of work segments in an organization
Element of Organization Work Specialization Topic 3 Organizing 01 Dividing work activities into separate job tasks, each employee performs specific or specialized jobs according to their skills, qualifications, and abilities. Also known as division of labor. To increase work production, individual employees "specialize" in executing a portion of a task rather than an entire job. Work specialization makes efficient use of the diversity of skills that workers have. In most organizations, some tasks require highly developed skills; others can be performed by employees with lower skill levels. Job depth: emphasizes the degree of freedom employees have in performing their jobs Job scope: involves steps to overcome employees’ levels of dissatisfaction by increasing and widening their job scope. Two important aspects related to job specialization: The advantages and disadvantages of work specialization: Advantages Disadvantages Employees improve their skills and efficiency. Jobs are finished faster, which saves time. Reduce workload and stress levels Reduce training and other expenses. The level of knowledge of employees grows Effective and productive utilization of resources Does not encourage creativity because employees perform the same job every day Employees can easily become bored and lazy Employees are unable to change jobs due to a lack of skills. Employees are unable to demonstrate new skills and competence. Employee productivity decreases as a result of a loss of concentration on the job at hand and a lack of interest. It increases training costs if job styles change.
Departmentalization Chain of command Authority The ability to tell people what to do and expect them to do it comes with being in a managerial position. Delegation Leaders or managers delegate authority and responsibility to others to do certain tasks on their behalf. Responsibility Employees accept a commitment to perform those assigned duties and obligation or expectation to perform. Unity of Command An individual should only report to one manager. Conflicting demands from many bosses may cause problems if there is no unity of command. Span of control Topic 3 Organizing 01 After determining who will perform which job tasks, common work activities must be regrouped so that work is completed in a coordinated and integrated manner. Common forms of departmentalization are used: functional, divisional, hybrid, and matrix. The chain of command is the line of authority that runs from the upper to the lower organizational levels, defining who reports to whom. Understanding the chain of command requires understanding three other key concepts: authority, responsibility, and unity of command. A span of control is the number of subordinates who report directly to a manager or supervisor. The traditional view was that managers could not and should not directly supervise more than five or six subordinates. It determines the number of levels and managers in an organization, which is an important consideration in how efficient an organization will be. The greater the span, the more effective the organization. Longer time spans may impair effectiveness if staff performance deteriorates due to managers' inability to lead effectively.
Advantages Disadvantages Make it easier for organizational actions to be coordinated in order to meet predetermined goals. Compared to those at lower levels, top managers may have more experience and make wiser decisions. Prevent subordinates from abusing power. Strong leadership keeps the top position. Assist in the coordination of duties assigned to staff at various management levels. Top-level management takes longer to make decisions, which may result in economic resource losses (time and money). Difficulties in adapting organizational operations and choices to changes in the business environment. Employees are unmotivated to work more because they lack opportunities to demonstrate their abilities. Centralization and Decentralization Formalization Topic 3 Organizing 01 Centralization refers to the extent to which decisions are made at the highest levels of the organization. When top management makes crucial choices with little input from below, the organization becomes increasingly centralized; there is no power distribution to subordinates. On the other hand, the lower-level employees contribute input or make decisions, the more decentralized the organization. Traditional organizations were built in the shape of a pyramid, with power and authority centered near the top. Employee empowerment gives employees additional decision-making authority (power). The degree to which an organization's jobs are standardized as well as the extent to which employee behavior is governed by rules and procedures. In highly structured organizations, job descriptions are detailed, there are numerous organizational regulations, and there are fully defined procedures covering work processes. Employees have little control over what gets done when it gets done, and how it gets done. Where formalization is limited, employees have more flexibility in how they conduct their jobs.
The Organizing Process Topic 3 Organizing 01 Just like planning, organizing needs to be a carefully planned out and executed process. This process entails identifying the tasks that must be completed in order to achieve the goal, distributing those duties to individuals, and placing those individuals in an organizational structure to facilitate decision-making. A well-defined organizing process improves organizational communication, transparency, and efficiency. Listing the jobs Managers need to list the details of each job or activity that is to be performed by employees. Dividing the jobs Sort and group the necessary work activities into manageable components such as functional, product, matrix, and so on. Jobs will be allocated to individuals or groups of individuals according to their abilities and skills. Establishing department Assign specific individuals or groups to the indicated work activities. Organizations will need to conduct departmentalization, which refers to gathering employees who will be performing the same tasks into one group. Coordinating the jobs Assign authority to the respective individuals or groups to carry out the assigned tasks. An effective coordination mechanism enables problems to be solved using established rules, procedures, and policies. Performing evaluations and adjustments Managers need to evaluate the effectiveness of the organizing process that was implemented and make the necessary adjustments to any changes that occur.
Functional Structure This organizational structure categorizes people based on the function they perform in the organization. Sorting by related work specializations. The functional structure is the most popular model in most organizations. Organizations using this structure are separated into smaller groups based on specialized functional areas such as operations, finance, marketing, human resources, information technology, and so on. The organization's top management team is made up of multiple functional heads (for example, the VP of Operations and the VP of Sales and Marketing). Types of Organization Structure Topic 3 Organizing 01 Advantages Disadvantages In general, communication takes place between each functional department and is channelled through the department leaders. This organizational structure boosts operational effectiveness by functionally grouping employees according to their areas of specialization and commonly performed tasks. As each group of specialists may function independently, it enables increased specialization. There are a few difficulties with this arrangement. When separate functional areas become silos, they focus solely on their area of duty and do not provide help to other functional departments. Additionally, competence is restricted to a single functional area, limiting opportunities for learning and progress.
Divisional Structure Advantages Disadvantages Organizational structure based on product categories promotes autonomy by separating processes from other product lines in the organization. It encourages both innovation and in-depth knowledge of a certain product area. It allows for a clear focus as well as accountability for program outcomes. This model also has a few drawbacks, such as the need for excellent abilities in a specific product. It may result in functional duplication and a loss of control; each product group becomes a heterogeneous unit in and of itself. A sort of organizational design that combines together personnel that are in charge of a specific product category or market service based on workflow. The divisional structure of a business tends to increase flexibility, and it can also be broken down further into product, market, and geographic structures. This is another popular structure in which organizations are structured by product category. Each product category is treated as a separate unit and reports to a manager who oversees everything relating to that product line. Types of Organization Structure Topic 3 Organizing 01
Matrix Structure Advantages Disadvantages This type of structure brings together employees and managers across departments to work toward accomplishing common organizational objectives. It leads to efficient information exchange and flow as departments work closely together and communicate frequently with each other to solve issues. This structure promotes motivation among employees and encourages a democratic management style where input from team members is sought before managers make decisions. However, the matrix structure often increases the internal complexity of organizations. As reporting is not limited to a single supervisor, employees tend to get confused as to who their direct supervisor is and whose direction to follow. Such dual authority and communication lead to communication gaps and division among employees and managers. This is a structure that combines function and product structures. This combination results in an effective organizational structure. The most complex organizational structure. It offers both horizontal and vertical reporting levels, and it makes use of cross-functional teams to add to functional knowledge. As a result, personnel may belong to a specific functional group while still contributing to a team that supports another program. Types of Organization Structure Topic 3 Organizing 01
Selecting job candidates Planning labor needs and hiring job candidates Conducting job analyses Orienting and training new employees Selecting job candidates Providing incentives and benefits Managing wages and salaries Communicating Appraising performance Building employee commitment Training and developing managers Topic 3 Organizing 3.2 Human Resource Management Human Resource Management is a management function concerned with hiring, motivating, and maintaining people in an organization. Definition of Human Resource Management 01 It focuses on people in the organization. The process of hiring, training, evaluating, and rewarding personnel, as well as dealing with labor relations, health and safety issues, and fairness issues. Objectives of Human Resource Management
Eight steps comprise the HRM process The process by which managers guarantee that they have the proper number and types of skilled people in the right places and at the right times. Organizations can avoid unexpected personnel shortages and surpluses through planning. Entails two steps: i) Assessing current human resources Job analysis information is gathered by directly observing individuals on the job, interviewing employees individually or in groups, having employees complete a questionnaire or record daily activities in a diary, or having job "experts" (usually managers) identify the specific characteristics of a job. Using the job analysis information, managers create or change job descriptions and job specifications. Job description: a written statement that describes a job— typically the job content, atmosphere, and working conditions. ii) Meeting future HR needs The mission, goals, and strategies of the organization influence future HR needs. Employee demand is influenced by demand for the organization's products or services. Managers can forecast areas where the organization will be understaffed or overstaffed after considering both present capabilities and future needs. Human Resource Planning Recruitment Selection Orientation Training Performance Management Compensation and benefits Career development The first three activities ensure that qualified candidates are identified and chosen. The following two entail keeping employees' knowledge and skills up-to-date, and the final three ensure that the firm keeps competent and high-performing staff. Topic 3 Organizing 01 1 Human resource planning Decruitment Provide employees with up-to-date skills and knowledge Identify and select competent employees Retain competent and high-performing employees
Selection is a procedure used in organizations to choose a suitable candidate with the required educational qualifications, skills, competencies, and personality. The selection method begins when the recruitment process is completed. Selecting the individual or people with the best performance potential from a group of applications. Selection steps: Predicting which applicants will be successful if employed is part of the selection process. Official application Interviewing Testing Checking reference Physical examination Final evaluation and decision to hire or reject Topic 3 Organizing 01 Recruitment Recruitment is the process of identifying qualified applicants and persuading them to apply for a position in a company. Recruitment is the finding of staff members for current and future positions in a business. Activities aimed at attracting a qualified pool of job applicants to a company. Steps in the recruitment process: Job posting advertisement. If HR planning reveals an excess of personnel, managers may wish to minimize the organization's employment through decruitment. Contact possible job candidates on a preliminary basis. Initial screening to develop a pool of qualified candidates. Selection 2 3 Orientation Orientation is a series of activities meant to familiarize new employees with their jobs, coworkers, and key features of the business. There are two types of orientation: Work unit orientation Organization orientation Introduces the employee to the work unit's aims, defines how his or her employment relates to those goals, and gives a welcoming greeting to his or her new coworkers. Provides the new employee with information about the company's aims, history, philosophy, procedures, and rules. It should also include applicable HR policies and possibly a tour of the facilities. 4
Topic 3 Organizing 01 Training Training is a series of activities that allow people to learn and enhance job-related abilities. Performance Appraisal The systematic review of an employee's performance by an expert or his or her immediate superior. Formally evaluating and providing feedback on someone's work achievements. Purposes of performance appraisal: Evaluation: lets people know where they stand relative to objectives and standards. Development: assists in the training and continued personal development of people. 5 6 Compensation and benefits Base compensation or direct pay: Indirect compensation: Fringe benefits: An employee’s base wage can be a monthly, annual, hourly wage, or any performance-based pay that an employee receives, such as profit-sharing bonuses. Including everything from legally required public protection programs such as social security to health insurance, retirement programs, paid leave, child care, or housing. Any benefit an employee receives that does not involve tangible value. This includes employment security, flexible hours, and opportunities for advancement, as well as praise and recognition, task satisfaction, and friendships. 7 7.Career Development Self-assessment Career awareness Goal setting Skill training Performance 8