Friday, February 5, 2010

Final Exam April 2007 Fundamental of Management


Title Assignment:


Final Examination of APR 2007


 


PART C


 


1. Explain the three (3) types of control method. (6 marks)





The definition of controlling is the process of ensuring that actual activities conform to planned activities. In fact, control is more pervasive than planning. Control helps managers monitor the effectiveness of their planning, their organizing, and their leading activities. An essential part of the control process is taking corrective actions as needed. There are four type of control method, pre-action (feed forward), steering, screening and post-action control (feed back).





Pre-action control or feed forward is done at the input level of production that is before the start of production activities. The purpose of pre-action control is to anticipate potential problem and preventing them. For example, a specification of output factor by a company, which is material resources, is needed in order to achieve the best quality of production.





Steering control focus on what occurs during the work process. The primary goal in steering control is to spot problems and take corrective action before final results are achieved. Specify checkpoints that must be successfully passed before an activity proceeds further. Before proceeding to the next sequence, an activity must be approved or meet specific condition. For example, ‘0’ inflation is campaign by Malaysian Government to Malaysians.





Post-action control or feedback takes place after an action is completed. It attempts to measure the result of certain actions. If there are problem, corrective action are done and applied to future activities. For example, a car company will ask their customers the quality and long lasting of the cars produced by the company.





2.  a) Differentiate between single-use plans and standing plans. (3 marks)





There are four differences between single-use plan and standing plan, which are time of using, time of recurring and type of situation.


           


First is time of using. Single-use plans are used only once, as it might not be repeated in the same form in the future. For example, the activity of set up a plant or factory is the example of a single-use plan as it used a unique plan that cannot be used in the next time. While, standing plans are designed to be used again and again. For example, the activity of producing the finished products is the example of a standing plan as it used a common plan that can be used in the next time.





Second is time of occurring. Single-use plan is a short-term plan, which is main for non-recurring activity. It means that the activities are occurring only once as it might not occur again in the same form for the next time. For example, the activity of set up a plant or factory is the example of a single-use plan, as it might not be used repeatedly in the next time. While, standing plans is a short plan that is for recurring activity. It means that the activities are designed to be occurred again and again. For example, the activity of producing the finished products is the example of a standing plan as it has a repeated procedure for the company to continue its’ business.





Third is type of situation. Situations in single-use plans are unlike due to the fact that different years have different situations. For example, the usage of machinery and technology to set up a plant might be different from a year to other years, so the plan used is unique and known as single-used plan. Situations in standing plans are similar which is handled in predetermined and consistent manner. For example, a furniture company faced similar problem through the year, which is the furniture, are easily to broke down.





2. b) List the types of single-use plans. (3 marks)





Single use plan is one type of operational strategy that is a short term planning. It consists of programs, projects and budgets.





Program is a single plan, which the actual course of action designed to carry out the established objectives. It can be define as govern comprehensive set of activities design to accomplish goal. For example, to improve the quality level of product, a company may institute a quality awareness program.





Projects can be defined as direct the efforts of individuals of group toward achieve goal. It is smaller than program as it has limited scope and distinct directives concerning assignments and time. If the program is to transfer inventory from one warehouse to another, one related project might be to evaluate floor space at the proposed installation. For example, a company organizes an annual dinner for employees in the company.





Budgets can be defined as specify how financial resources should be allocated. It is a statement of financial resources set aside for specific activities in a given period of time. For example, a company will plan how much financial resources needed to carry out its operation.





3. Briefly explain four (4) process of management. (6 marks)





Management is the process of planning, organizing, leading and controlling the efforts of an organization members and of using all other organizational resources to achieve stated organizational goals. There are four processes of management, which is planning, organizing, leading and controlling.





The first process is planning. Planning can be defines as setting goals and defining actions necessary to achieve those goals. For example, a car manufacture company plans to produce the best quality of car.





The second process is organizing. Organizing is the process of determining the task to be done, who will do them and how those tasks will be managed and coordinated. It also involves the process of arranging and allocating work, authority and resources among organization members so they can achieve the organization’s goals.





The third process is leading. Leading can be defines as the process of motivating and directing the members of organization in order to achieve the goals in the organization. For example, a manager will motivate their employees to work harder in order to increase their company production.





The forth process is controlling. Controlling is the process of ensuring that the actual activities conform to plan activities. For example, a manager has to control the quality of his company’s production in order to make sure that it is conform to the planned production.











4. Explain the three (3) basic skills of managers. (6 marks)





Management skill is a concept developed by Henri Fayol, a famous management theorist. Fayol identified three basic kinds of skill, which are technical skill, human skill and conceptual skill. Every manager needs all these three basic skill.





First basic skill of manager is technical skill. This skill is able to utilize tools in order to carry out particular field. It is the most important in lower level management. For example, surgeon, engineers, musicians, accountants and others have technical skill in their respective field.





Second basic skill of manager is human skill. This skill is able to work effectively with other, understand them and motivate other people as in individual or in-group. Although this skill is important for manager at every level, it is primary skill needed by middle managers. For example, a manager plays their important role by motivate their employee and work together with them in order to achieve their goals in the organizations.





Third basic skill of manager is conceptual skill. This skill is able to analyze complex situation. The important of conceptual skill increases as one rises through the ranks of a management system. It is primary skill needed by top manager. It involves seeing the organization as a whole, understanding how its parts depend on one another, and anticipating how a change in any of its parts will affect the whole. For example, a manager of a company used their conceptual skill to make decision for the overall organizations.








5. Briefly explain three (3) problems in implementing Total Quality Management (TQM). (6 marks)





Total Quality Management is a commitment to excellence, achieve by team work and a process of continuous improvement. It consists of five main ideas, which is system approach, tools of TQM, focus on customers, role of management and employee participation. There are three problems in implementing Total Quality Management.





First problem is, the manager must have to used technology in his company so that he can manage the quality of management easily. Technology play important rule in all company such as a company of manufacturing of paper need to use technology, so that the thickness of the paper will be at the same thickness.





Second problem is the manager must respect his customers. Managers have problems in implementing Total Quality Management because they does not be friend with their customer. They just thinking that their customers are stranger. It will show the low relationship of people between manager and customer.





Third problem is the tools of Total Quality Management. Tools of TQM consist of two type which is fish-bone diagram and benchmarking. Managers have problem in implementing TQM because they do not know the causes of a problem and how to preventing it from happen in his company. Besides, the manager does not comparing his own product with the best quality of product from other companies. It caused the manager will not know the level of quality of his product in his company.





PART D





1. With the aid of a diagram, discuss the Maslow’s Hierarchy of Needs Theory. (10 marks)








According to this hierarchy of need theory, as developed by Abraham Maslow, states that everyone has needs that require to be fulfilled. These needs can be divided into five ascending levels in which each level must be satisfied before going on to the next.




Physiological needs are necessary to survival and include food, water, shelter and sleep. Business addresses these needs by providing both comfortable working environments and salaries sufficient to buy food and shelter. Example for physiological needs is most basic need that is necessary for survival such as food, water, shelter and et cetera.



Security needs include the needs for stability and protection from the unknown. Many employers thus offer pension plans and job security. Example for security needs is job security, freedom from coercion, and clearly defined regulation.



Social needs include the needs for friendship and companionship. Making friends at work can help to satisfy social needs as can the feeling that you ‘belong’ in a company.



Esteem needs include the need of status and recognition as well as the need for self-respect. Respected job titles and large offices are among the things that business can provide to address these needs.



Self-actualization needs are need for self-fulfillment. They include the needs to grow and develop one’s capabilities and to achieve new and meaningful goals. Challenging job assignments can help satisfy these needs.






2. Discuss the principles that Islamic leaders should follow to be an effective leader. (10 marks)





Management from Islamic Perspectives can be defined as the ability to utilize resources both material and human, optimally in order to achieve goals, be its short-term goals or long term goals. It is based on the teaching generated from the holy Al-Quran and the As-Sunnah. The holy Al-Quran and As-Sunnah were the sources that provided guidance in making decisions. There are five principles that Islamic leader should follow to be an effective leader, which is Tauhid, Syura, Trustworthy, Reward and Amar Makruf Nahi Munkar.





First, Tauhid or Unity. Man’s ultimate accountability is only to God alone. It also can define the unique relationship between God and man, man and man, and man and his environment. He is required to only serve God through all his actions.





Second, Syura or Mutual Consultation. It used to be undertaken among leaders of various tribes or groups. Syura certainly implies transparency, open mindedness, which can only happen with the accompaniment of respect, trust, empowerment, freedom of expression, readiness to be criticized and acceptance of divergent views.





Third, Trustworthy or Amanah. The leader must be trustworthy because all their members’ problem should be secrets from other. If not, the members will not respect them. Selection of a new personal staff should not be based on self-interest of favoritism but from personal ability, experience and other suitable criteria that fit the job.





Forth, Reward or Penghargaan. Every believer knows that they should be performing the acts of worship solely to seek Creator pleasure. In Islam we should seek our rewards from Allah S.W.T, not from other destitute people like ourselves. Islamic Management views rewards as the compensation or benefit earned not only today but till one dies.





Fifth, Amar Makruf Nahi Munkar. Can be defined as exclaiming people to do kindliness and to leave out all the bad behavior. To measure of what we are doing either it a fair or cruel (haq or batil), we should refer back to Al-Quran and As- Sunnah. Anything that is right in syara’ will always right although it is opposite to our passions and wants. Similarly if everything in stated in syara’ as illegal or wrong to be done by Muslim, it can’t never change until the end of the day.





The Islamic effective leaders are following these principal in order to achieve their goals in their organizations. These Islamic principles will lead Islamic leader to be a good and effective manager during planning, organizing, directing and controlling process in their company.








3. Paul Hersey and Kenneth Blanchard’s Life-Cycle Theory or Situational Approach is a contingency theory that focuses on the followers. With the help of a diagram, discuss this theory. (10 marks)












This model was developed by Paul Hersey and Kenneth Blanchard. He proposed that the most effective leadership style varies with the readiness or maturity of employees. Hersey and Blanchard believe that the relationship between a manager and follower move through four phases as employees develop, and managers need to vary their leadership style.





The first phase is Telling. The leader uses one-way communication. This is appropriate when dealing with employees who lack task relevant maturity, new and inexperienced employee. This phase has high task behavior and low relationship behavior. Employees must be instructed in their tasks are familiarized with the organization’s rules and procedures.





The second phase is Selling. Employees are learning to do job. This phase has high task behavior and high relationship behavior. High relationship is needed due to managers providing a high level of emotional support and encouragement to develop trust and confidence in employees.





The third phase is Participating. This phase has low task behavior and high relationship behavior. Employees already show maturity in performing tasks. They are more experienced and skilled to assume more responsibility. The leader will no longer need to be directive. However, the leader will still have to be supportive and considerate in order to strengthen the followers’ resolve for greater responsibility.





The forth phase is Delegating. This phase has low task behavior and low relationship behavior. This phase is the highest level of employee maturity. Employees are motivated, self-directed and able to exercise self-control. Followers no longer need or expect direction from their manager. They are increasingly on their own.








4. Managers need to be aware of the existence of grapevine within their organizations. With that aid of a diagram, explain the four (4) types of grapevine method of transmitting information. (10 marks)





Grapevine is an informal communication network among people in organization, which is not officially sanctioned by management. There are four types in grapevine communication, which is a single strand, gossip, probability and cluster chain.





First, in the single strand chain, person A tells something to person B, who tells it to person C, and so on down the line. This chain is least accurate at passing information.





Second, in the gossip chain, one people seek out and tell everyone the information he or she has obtained. This chain is often used when information of an interesting but non0job-related nature is being conveyed.





Third, in the probability chain, individuals are indifferent about whom they offer information to. They tell people at random, and those people in turn tell others at random. This chain is likely to be used when the information is mildly interesting but insignificant.





Forth, in cluster chain, person A conveys the information to a few selected individuals, some of whom then inform a few selected others. This chain is the dominant grapevine pattern in organizations. They are most likely to pass on information that is interesting to them, job-related, above all, timely.











5. a)  What is a non-programmed decision? (2 marks)





Non-programmed decision is one type of decision making process. Decision maker is top manager. Nature of problem that occurs is unstructured and something different. The decision is made in response to situations that are unique, unstructured, or poorly defined.








b)  Discuss the various stages of the basic rational decision making process. (8 marks)





Decision making is the process through which mangers and leaders identify and resolve problems and capitalize on opportunities. Good decision making is important at all levels in the organization. Managerial decision making often unfolds in a quite disorderly and complex manner.





First step in decision making is identifying opportunities and diagnosis problems. Managers regularly review date related to their areas of responsibility, including both outside information and reports and information from within the organization. Identifying opportunities and problems is not always easy, considering human behavior in organization. Therefore, a manager must pay particular attention to ensure that problems and opportunities are assessed as accurately as possible. For example, a mechanic will identify the problems that occur in the broke car.





Second step in decision making is identifying objectives. Objectives reflect the result of the organization wants to attain. Both the quantity and quality of the desired results should be specified, for these aspects of the objectives will ultimately guide the decision maker in selecting the appropriate course of action. Objectives are often referred to as targets, standards and ends. For example, the mechanic wants the broke car can be used by his customer for a long period without it broke again.





Third step in decision making is generating alternatives. Once an opportunity has been identified or a problem diagnosed correctly, a manager develops various way to solve the problem and achieve objectives. The step requires creativity and imagination. For example, the mechanic will generate many alternatives way in order to settle the problem of broke car, such as need to change the batteries of the car or just checks the connection of wires in the car.





Forth step in decision making is evaluating alternatives. This process involves determining the value or adequacy of the alternatives generated. Fundamental to this step is the ability of assesses the value or relative advantages and disadvantages of each alternative under consideration. For example, the mechanic will evaluate the alternatives by looking at the cost or risk of taking an alternative to overcome the problem.





Fifth step in decision making is reaching decision. Decision making is commonly associated with making a final choice. Reaching the decision is really only one step in the process, however. Although choosing an alternative would seem to be straightforward proposition, in reality, the choice is rarely clear-cut. For example, the mechanic prefers to choose the alternatives that he can just check the wires in the car. It because, he can reduce the cost of repairing car.





Sixth step in decision making is choosing implementation strategies. The bridge between reaching a decision and evaluating the results is the implementation phase of the decision making process. When decisions involve taking action and making changes into effect becomes an essential managerial task. For example, the mechanic will choose some strategies to repairs the broke car such as he need to know the true connection of wires in the car, so that he can repairs it fast.





Seventh step in decision making is monitoring and evaluating. Monitoring the decision is useful whether the feedback is positive or negative. For example, the mechanic monitoring the result produced when he make connection of the car wires. If the results show positive feedback, he can maintains the effective alternatives in his company when there are in the same problem. If the mechanic found that the result gives negative feedback, he should come out with a new effective alternative to solve the problems.



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