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BBPP1203 Principles of Management For Non-Business Majors - Caug17 (Bookmark)
BBPP1203 Principles of Management For Non-Business Majors - Caug17 (Bookmark)
Principles of Management
for Non-Business Majors
Topic 6 Motivation 91
6.1 Approaches to Motivation 92
6.2 Need-based Models 93
6.2.1 MaslowÊs Hierarchy of Needs 93
6.2.2 Two-factor Model 95
6.3 Process-based Models 96
6.3.1 Expectancy Theory 97
6.3.2 Equity Theory 98
6.3.3 Goal-setting Model 98
6.3.4 Reinforcement Model 99
Summary 100
Key Terms 101
References 131
INTRODUCTION
BBPP1203 Principles of Management for Non-Business Majors is one of the
courses offered at Open University Malaysia (OUM). This course is worth 3
credit hours and should be covered over 8 to 15 weeks.
COURSE AUDIENCE
This is a compulsory basic course for Open University Malaysia. As an open and
distance learner, you should be able to learn independently and optimise the
learning modes and environment available to you. Before you begin this course,
please confirm the course material, the course requirements and how the course
is to be conducted.
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a three-credit hour course, you are expected to spend
120 study hours. Table 1 gives an estimation of how the 120 study hours could be
accumulated.
Study
Study Activities
Hours
Briefly go through the course content and participate in initial discussions 3
Study the module 60
Attend 4 tutorial sessions 10
Online participation 12
Revision 15
Assignment(s), Test(s) and Examination(s) 20
TOTAL STUDY HOURS ACCUMULATED 120
COURSE OUTCOMES
By the end of this course, you should be able to:
COURSE SYNOPSIS
This course is divided into nine topics. The synopsis for each topic is listed as
follows:
Topic 1 gives an overview of management and the roles that must be played by
the manager. The management skills required at different levels of management
will also be introduced. Learners will be exposed to the evolution of management
thoughts that explains the thinking contributed by the main management
thinkers over the years.
Topic 3 describes the design of an organisation. Several factors that influence the
structure of an organisation such as strategies, size, environment and technology
will be discussed. The types of organisations such as departmentalisation
grounded on functions, products, customers, geographical location and matrix
will also be clarified. This is followed by management of organisations which
includes authority, chain of command, span of control, delegation, centralisation
and decentralisation. Apart from that, it will also converse work design that
involves work specialisation, job rotation, job enrichment and job enlargement.
Finally, this topic will explain the mechanistic and organic organisational designs
and several other types of new structures. This topic will also deliberate the
forces of changes in organisations. The factors that can cause changes to
organisations, ways to manage changes, resistance to change and tactics to
overcome resistance to change will also be explained.
Topic 4 focuses on human resource management (HRM). This topic discusses the
essential functions of HRM which include human resource planning and
forecasting, recruitment of potential employees, the use of different selection
techniques to select employees, the types of training and development use to
increase employeesÊ skills and abilities, performance appraisal, compensation
strategies and employee separation. The importance of all functions will also be
explained.
Topic 6 explains motivation models. Two types of motivation models that will be
discussed are the needs based and process based models. These include Maslow's
Hierarchy of Needs Model, HerzbergÊs Two Factor Theory, McClellandÊs Needs
Achievement Model, Expectancy Model, Equity Theory, Goal-setting and
Reinforcement Theory.
Topic 7 reviews leadership. This topic will discuss leadership based on three
approaches which are leader-centred approach, follower-centred approach and
interactive approach. The leader-centred approach focuses on the characteristics
of the leaderÊs personality, behaviour of the leader and style of leadership. Under
the behavioural approach, the Management Grid and the researches by the Ohio
State University and Michigan University will be discussed. The follower-centred
approach focuses on the variables of replacement and neutralisation of
leadership. In the interactive approach, the Situation Leadership Model, Fiedler
Contingency Model, and the Path-Goal and the Continuum of Leadership
Behaviour will also be discussed. At the end of this topic, strategic leadership
will be presented and it covers the characteristics of visionary leaders,
charismatic leaders, transactional leaders and transformational leaders.
Topic 8 covers control. This topic discusses the steps in the control process. Also
discussed are the basic methods of control and five forms of control.
Topic 9 focuses on teams. This topic starts with the differences between teams
and groups, the advantages and disadvantages of teams and when teams are
used. Also discussed are the types of teams that exist in an environment. Several
features of teams and phases of team development will also be elaborated.
Learning Outcomes: This section refers to what you should achieve after you
have completely covered a topic. As you go through each topic, you should
frequently refer to these learning outcomes. By doing this, you can continuously
gauge your understanding of the topic.
Summary: You will find this component at the end of each topic. This component
helps you to recap the whole topic. By going through the summary, you should
be able to gauge your knowledge retention level. Should you find points in the
summary that you do not fully understand, it would be a good idea for you to
revisit the details in the module.
Key Terms: This component can be found at the end of each topic. You should go
through this component to remind yourself of important terms or jargon used
throughout the module. Should you find terms here that you are not able to
explain, you should look for the terms in the module.
PRIOR KNOWLEDGE
This is an introductory course. There is no prior knowledge needed.
ASSESSMENT METHOD
Please refer to myINSPIRE.
INTRODUCTION
Management is an essential element in every organisation. Management means
ensuring that a job is carried out well until completion by working with and
through people using organisational resources.
This means a manager may not necessarily need to know how to perform a
specific job but he needs to act as a coordinator to ensure that the task is carried
out smoothly.
For example, the manager of a shoe factory may not necessarily know the details
of shoemaking but he needs to ensure that all resources allocated to him,
including human resources ă the employees under him ă function satisfactorily
and that the objectives set by the organisation are achieved. Furthermore, the
manager needs to make sure that the objectives are achieved efficiently and
effectively.
Efficiency is performing a job with minimum effort, cost and wastage or simply,
„doing things right‰. Managers who are capable of minimising the cost of the
resources (labour, materials and time) required to attain goals are acting
efficiently.
SELF-CHECK 1.1
ACTIVITY 1.1
Each manager has a different set of jobs and responsibilities but all are geared
towards fulfilling a goal or set of goals. Managers at different levels utilise their
time differently. Figure 1.1 shows three types of managers.
These managerial levels have many similarities. Managers at all the levels
plan, organise, lead and control their employees and tasks in the organisation.
Managers also spend time with their employees through conversations and
discussions, provide guidance and motivation as well as attend conferences and
committee meetings.
Management
Description
Function
Planning Defining objectives to be achieved for a given period and what
needs to be done to achieve the objectives. All management levels
in an organisation need to be involved in planning. Managers need
to develop objectives in line with the overall strategies of the
organisation.
Organising Determining what tasks are to be done, who will implement and
coordinate them, how the tasks are to be grouped, who reports to
whom as well as what decisions are to be made and by whom. The
manager needs to logically and effectively organise the information,
resources and workflow so that he will be able to react positively to
changes in the business environment.
Leading This involves motivating the subordinates, selecting the most effective
communication channels, resolving conflicts, directing as well as
guiding the actions of others in order to achieve all the objectives. The
effective leader has to be visionary, sharing the vision with and
motivating the employees towards realising the vision.
Controlling The measuring of performance in all predetermined objectives,
determining reasons for deviations and taking appropriate actions,
where necessary. Controlling is an important function in the
management process as it provides ways to ensure that the
organisation moves towards achieving its objectives.
Role Description
1. Figurehead A manager must carry out ceremonial duties and represent
the organisation in all matters of formality.
For example, the vice-chancellor of a university must be
involved in the launching of programmes to be conducted at
the university; the head of the department is responsible for
entertaining his clients.
2. Leader A manager indirectly functions as a leader. Each manager
must function as a leader to motivate and encourage his
subordinates.
As a leader, he is also involved in directing and coordinating
the activities of his subordinates to effectively achieve the
goals of the unit and organisation besides resolving problems
and issues.
Figure 1.3 shows three types of essential skills needed at each level of
management. The arrow pointing upwards shows the type of skills that are
increasingly needed by top-level management. The arrow pointing downwards
shows the type of skills that are increasingly needed by lower-level management
or line managers.
SELF-CHECK 1.2
(i) Using the scientific approach to determine best practices and not
relying on rule of thumb;
Mary Parker Follet (1868ă1933) was trained in the field of philosophy and
political science. Her approach focused on the involvement of employees
and sharing of information among managers.
SELF-CHECK 1.3
Three experiments were conducted and the results of all the experiments
contradicted expected outcomes. In the first experiment, the brightness of
lighting served as a physical situation. It was assumed that higher levels of
brightness would facilitate higher output for the employees. Interestingly, it
was found that when the lighting was brightened or dimmed, production
output continued to increase. This meant that there were other factors
that might have caused the increase in productivity. It was the same for
the second and third experiments where other physical situations were
chosen. The results could not clearly explain the causes for the increase in
production.
This approach can be widely seen in most organisations. The economic and
sociological aspects have significantly influenced how managers probe
further into the organisationÊs strategy and structure. Psychology has
influenced the managementÊs approach through motivation, communication,
leadership and personnel management.
(iv) Feedback – Responses and information given that will influence the
selection of input used in the next process cycle; and
(i) Open system ă A system that interacts with the external environment
in order to survive;
(ii) Closed system ă A system that does not interact with the external
environment in order to survive and often fails;
diverse workforce are proving to be inadequate and may not be able to solve
the problems of cross-cultural diversity in the era of globalisation. To achieve
organisational goals and avoid potential risks, managers should be culturally
sensitive and promote creativity and motivation through flexible leadership.
„Being an IKEA manager overseas is not just running the stores and distribution
systems smoothly. Managers must be able to explain to employees and managers
why things are to be done that way and win peopleÊs hearts and minds to the
ÂIKEA-WayÊ. They are expected to be ambassadors and must educate their non-
Swedish co-workers through patience, common understanding and example. It is
not always easy to transmit IKEAÊs egalitarian management style‰.
ACTIVITY 1.2
A university professor told her students, „The purpose of a
management course is to teach students about management, not to
teach them to be managers.‰ Do you agree or disagree with this
statement? Discuss.
SELF-CHECK 1.4
Efficiency is implementing the work with minimum ability, cost and wastage
or doing things right.
Managers are known for their management functions which can be grouped
into planning, organising, leading and controlling.
Management skills are crucial to ensure the success of a manager. They are
conceptual, interpersonal and technical skills.
Managers are divided into three types, namely top management, middle
management and lower management.
The management methods in the olden days are quite different from those of
today.
INTRODUCTION
Planning is one of the basic functions of management. According to C. W. Roney
(Certo, 2000), planning is generally done for two purposes. Firstly, it is done as a
protection for the organisation. This means that a manager can forecast the effects
of each of the suggestions or alternative actions of the plan that will be carried
out. Secondly, planning is done to increase the affirmative levels of the
organisation. For example, when an organisation opens a new branch, it is not a
matter of coincidence but the result of detailed planning.
(a) Planning means determining the objectives that are desired to be achieved
and deciding on the actions that are needed to be taken in order to achieve
the objectives (Lewis et al., 2001);
SELF-CHECK 2.1
Define planning.
Method Explanation
1. Determining Usually when a decision has been made through the
objectives by cooperation between management and employees, it will
cooperating create a sense of ownership towards the decision made
with all and employees will develop a sense of commitment to
members of the ensure the success of its implementation. This method
organisation is the best approach to increase the commitment of
employees.
2. Setting The objective has to be reasonable so that employees will
reasonable be motivated to perform their tasks until the planned
objectives objective is achieved. Objectives that are unrealistic with
high targets are difficult to achieve and will demotivate
employees while objectives that are too low will bore
them.
3. Announcing Generally, when an objective is publicly known, the
the objectives employees will be embarrassed if they fail to achieve it.
to members in Hence, everyone (managers and employees) will work
the harder to ensure that the planned objective is achieved.
organisation
4. Getting To facilitate work operations, it is essential to have the
support from support of top management. This support can be in the
top form of money, opinion, advice and/or others. With the
management support, all dealings will be made easier and this will
indirectly motivate employees to achieve the objectives.
SELF-CHECK 2.2
(a) Format
Planning differs from the aspect of format, that is, the way it is presented.
(b) Hierarchy
Please refer to Figure 2.4 to understand the hierarchy dimension.
(i) Planning that is only used once is known as one-time usage planning.
It is prepared to fulfil specific purposes such as the opening of a new
branch.
(ii) Planning that is repeatedly used is known as standing plans. The plan
is used to manage situations that frequently arise in an organisation
such as dealing with employee disciplinary problems. There are three
types of standing plans:
Policy
Policy is the general guidelines or principles which are used to
manage a situation.
Procedure
Procedure refers to the action or process that must be followed if a
certain situation arises. It is more specific compared to policy.
Regulation
Regulations are the specific guidelines when an action is being
taken. Regulations are generally more specific than procedures.
SELF-CHECK 2.3
Advantage Description
Generates Employees will be more diligent if there is a plan stating the
intensive effort objectives and work strategies. Work performance can be further
improved because they are aware of the direction and goal in which
they need to move towards.
Continuous Planning involves a specific time frame. Managers who engage in
effort planning know that the objectives can only be achieved when the
time comes. Hence, intensive efforts will continue until the planned
objectives are successfully achieved. Thus, the managers and the
employees will work more enthusiastically throughout the duration
to achieve the objectives.
Unity of With planning, employees will know the objectives which need
direction to be achieved including the strategies that must be followed.
Indirectly, all members of the organisation know the direction and
will move towards that same direction or objective.
Establishes When a senior manager sets an objective to be achieved,
work strategy automatically the managers at the middle and lower level will
question the ways to achieve the targeted objective. In order to
achieve it, senior managers will establish strategies which will
serve as guidelines in determining the activities that need to be
implemented.
Positive impact Planning has been proven to be effective for organisations as well
on individuals as individuals. Generally, organisations that engage in planning
and will obtain more profits and expand much faster compared to
organisation organisations that do not engage in planning. This also applies to
individuals regardless of manager or employee. Generally, work
performance is much better if they have objectives and strategies
when conducting their work.
Disadvantage Description
Restricts Planning is made for a specific time period. When changes take
changes and place in the environment, the existing plan needs to be updated.
adaptation The environmental changes can occur from the aspect of change
in consumer taste, changes in technology, legislation and others.
Failure to realise this need for change will cause implementation
failure in the present plans.
Uncertainty Planning is usually based on the assumptions of future occurrences.
towards For example, if a manager presumes that the demand will increase
assumptions in the future, plans will be made to increase the production of
products in order to meet the demand. In order to accomplish the
plan, assumptions on future issues must be accurate. If the forecast
is wrong, then the planning based on that assumption will also fail
in the end.
Separation Generally, the planning is done by top-level managers while its
between implementation is carried out by the employees at the lower levels.
planner and This segregation can sometimes cause the plans made to be
implementer incompatible with the capabilities of the employees especially when
the person who plans is not directly involved in the operations
division. As such, the planners do not really know the capability
levels and constraints at the operation level, resulting in
unsuccessful planning.
SELF-CHECK 2.4
ACTIVITY 2.1
ACTIVITY 2.2
Rational decision-making helps managers make good decisions. Explain
what rational decision-making is and discuss your answer with your
coursemates.
For example, testing for nuclear leakage in Japan after the 2011 tsunami is a risky
decision made by the Japanese government because they did not know how wide
the affected area was. Moreover, the nuclear substance used is a life-threatening
element.
SELF-CHECK 2.5
For example, your office is facing work delay problem. It was found that
the problem originates from a shortage of computers in the office.
Therefore, the management agrees to purchase more computers for office
use.
Since the management has decided to purchase new computers, what are
the criteria that will be taken into consideration when selecting new
computers? Price, quality, compatibility and warranty are the decision
criteria.
Based on the example given earlier, you might place the quality factor as
the most important, followed by the compatibility factor, pricing factor and
lastly, the warranty factor.
This means that all the alternative solutions ă Acer, IBM, NEC and Compaq
ă will be evaluated from the aspects of quality, compatibility, pricing and
warranty (decision criteria).
ACTIVITY 2.3
Discuss the six steps that need to be followed when making rational
decisions.
SELF-CHECK 2.6
2.8.1 Brainstorming
Brainstorming is a group decision-making process in which negative feedback on
any alternatives presented is forbidden until all alternatives have been studied
(Certo, 2000). Brainstorming blends a comfortable, casual method of problem-
solving with lateral thinking. It persuades people to come up with point of
views and ideas that can, at first glance, seem a bit crazy. During brainstorming
sessions, people should avoid criticising or rewarding the ideas put forth.
(a) Experts in related sectors are identified and selected as panel members;
(d) Each expert completes the questionnaire and returns it to the manager or
facilitator;
(e) All the answers are summarised and bound together in the form of a report.
It is returned to all panel members together with a more specific and
detailed questionnaire form that has been reviewed;
(f) Panel members read the report to find out the opinions and proposals of
the other panel members. They are also requested to complete the second
questionnaire; and
Advantages Disadvantages
1. Group offers more knowledge and 1. Group decision-making is time
skills compared to individuals. consuming especially if a problem
or conflict which arises requires
immediate attention.
2. More knowledge, skills and 2. The discussion may also be
alternatives can be generated from controlled by certain individuals and
the group which will help them to may limit the involvement of other
solve the problem better. members.
3. The backgrounds of the group 3. May have to compromise group
members are varied and this enables objective.
the problem to be viewed from
various perspectives.
4. Group will accept the decisions 4. High costs involved if the group is
that have been made and will be large and group members have to
committed to accomplishing its meet up for discussions.
implementation.
5. Groupthink is another common
problem whereby some members are
pressured to agree with the group
decision.
ACTIVITY 2.4
SELF-CHECK 2.7
INTRODUCTION
Welcome to Topic 3 of this module. In this topic you will be learning about
organisation structure and change. We will be looking at how the elements of an
organisational structure can be combined to make mechanistic and organic
structures. Let us first begin by looking at the factors that influence
organisational structure.
(c) Technology
Each organisation uses some form of technology to convert the resources
into outputs. Technology includes the knowledge, machineries, work
processes and resources that are used to transform inputs into outputs.
The technology used to produce the products determines the kind of
organisation suitable for its production system. Routine activities create
structures that are more centralised whereas non-routine activities depend
largely on the expertise of an individual which requires a more
decentralised structure.
(d) Environment
Every organisation will face external influences known as environmental
influences or factors that are specific or general which will affect its
survival. Why do environmental factors have an impact on the structure of
an organisation? This is because changes in the environment cannot be
determined. Some organisations operate in static environments while others
operate in environments that are dynamic. Static environment provides
less concern on uncertainties compared to a dynamic environment.
Uncertainties in the environment can threaten the effectiveness of the
organisation. As such, management will try its best to reduce the threats.
One of the ways of reducing uncertainties in the environment is by making
changes to the organisational structure.
SELF-CHECK 3.1
Advantages Disadvantages
1. It allows work to be carried out by 1. Difficulty in coordinating between
individuals who are qualified and departments.
skilled in the areas concerned.
2. It reduces cost by reducing work 2. Can cause delays in decision-
duplication and use of resources in making.
the organisation.
3. Each individual in the same 3. Produce managers and employees
department will acquire the same who are restricted in experience
work experiences or training, and expertise.
communication and coordination,
thereby reducing problems for
management.
Advantages Disadvantages
1. It allows managers and employees 1. Managers may too focused on
to expand their experience and their product to the exclusion of
expertise related to the overall the rest of the products in the
activity of the product or service organisation.
produced.
2. The product departmentalisation 2. Administration costs may also
structure allows management to increase due to each product
evaluate the work performance of having its own functional-area
each work unit. experts.
Advantages Disadvantages
1. The organisation will focus all its 1. Duplication of work and use of
efforts on fulfilling the needs of its resources.
consumers.
2. The ability of the organisation to 2. Difficulty to coordinate between
react with speed and efficiency to departments that provide services to
the requirements of the specific different types of consumers.
markets.
3. Helps to reduce costs by 3. May cause employees to
positioning the organisational overemphasise efforts to fulfil
resources nearer to the targeted customer needs to the extent that it
consumers. affects the organisationÊs business
performance.
Advantages Disadvantages
1. It allows the organisation to 1. It requires a higher level of
efficiently manage projects or coordination to manage the
activities that are large scale and complexities involved in big projects.
complex.
2. Conflict of authority and confusion
among employees who have to
report to more than one supervisor
or manager.
3. It requires higher-level management
skills compared to other types of
departmentalisation.
SELF-CHECK 3.2
Explain the concept of functional and geographic departmentalisation
and state one advantage and one disadvantage for these types of
departmentalisation.
ACTIVITY 3.1
Which type of departmentalisation is practised by your organisation?
Briefly explain.
3.3 AUTHORITY
Authority is described as the right to give commands, administer the work of
others and make certain decisions. It is associated with the managerial position to
give orders and directly influence the actions of others. Authority is normally
channelled from top to bottom, that is, from top-level management to lower-level
management.
Restricted Broad
Restricted span of control allows Broad span of control means a
the organisation to increase its single manager or supervisor
efforts to monitor its employees by oversees a large number of
allowing small number of subordinates. This gives rise to a
employees placed under the flat organisational structure.
managerÊs supervision. It reduces costs, expedites the
Will incur higher costs especially decision-making process, increases
the employeesÊ salaries. creativity and flexibility, narrows
The high cost is the result of the gap towards consumers and
vertical organisation structure as it empowers employees.
requires multiple levels of The organisation will strive to
management. ensure that broad span of control
Multiple levels of management can does not jeopardise the
cause delays in decision-making. organisationÊs operations by
IN addition, staff and managers providing training to all employees
have the tendency to refer their so that they will have a better
problems to upper management. understanding of their job
requirements and use the assistance
Creativity among employees will of colleagues to resolve issues that
be limited due to stringent controls arise.
and lack of freedom given by
management.
SELF-CHECK 3.3
ACTIVITY 3.2
What do you think are the key advantages for both centralisation
and decentralisation in organisational structure? Discuss this with your
coursemates.
Advantages Disadvantages
It is more economical. The person performing the task will
It takes a shorter time to learn and be easily bored.
become skilful. It can lead to low job satisfaction
When the work design is simple, and high absenteeism rates.
the wage or salary offered is also It can result in high employee
low. turnover in the organisation.
Organisation will only face a small
drop in the productivity rate when
employees are absent or when they
resign.
SELF-CHECK 3.4
ACTIVITY 3.3
Explain the advantages and disadvantages of work specialisation.
Discuss this with your coursemates.
SELF-CHECK 3.5
According to Robbin (1998), there are two goals for organisational change, which
are as follows:
In implementing changes within the organisation, there are two types of changes:
(a) Change of first order ă First order change is a linear change, slow in nature
and implemented in stages. This change is made without any apparent
change in the basic structure of the organisation. It is also conducted that
same way assuming there is no strong pressure from the environment.
(b) Change of second order ă The second order change is a change that is
radical in nature, multidimensional and multilevel. This type of change
requires high-level leadership in order to realise the changes. It takes place
when there is intense pressure from the environment which might disrupt
the survival of the organisation.
ACTIVITY 3.4
1. Do you agree that the change of second order requires a leader
who is charismatic and has a clear vision in order to ensure the
continuity of the organisation? State your reasons.
2. Briefly explain the two types of changes that can take place in
organisations.
ACTIVITY 3.5
ACTIVITY 3.6
If you are the general manager of an organisation, what are the factors
needed to overcome barriers towards change? Explain.
Organisational structures can also help to explain authority and the transfer
of authority within the organisation. Furthermore, it will also help in the
design of work involved in an organisation.
INTRODUCTION
Every organisation needs people to plan and implement all its activities to
achieve the goals that have been set. Therefore, employees are one of the
resources needed by an organisation. If an organisation uses high technology,
sophisticated tools and equipment, and has strong financial resources but lacks
skilful, knowledgeable and capable workforce, it will still not attain the success it
desires.
SELF-CHECK 4.1
HRP process helps the management of the organisation in achieving the future
demand of human resource in the organisation with the supply of the applicable
people in appropriate numbers at the appropriate time and place. Further, it is
only after proper analysis of the HR requirements can the process of recruitment
and selection be initiated by the management.
Planning human resources begins with considering the mission, strategies and
objectives of an organisation. Fundamentally, human resource planning consists
of two main components ă job analysis and forecasting.
(i) Job description is a written statement that clearly explains the job,
duties, responsibilities, activities and performance results required
from the job holder.
(b) Forecasting
Forecasting is a process of predicting the total number and types of
employees with the knowledge, skills and abilities needed by an
organisation in the future. There are two types of forecasting ă internal and
external.
SELF-CHECK 4.2
4.3 RECRUITMENT
The process of recruitment involves developing a group of candidates who are
interested and qualified for a position offered by an organisation. Recruitment
can be carried out using two methods: internal recruitment and external
recruitment.
higher level position, and also lateral moves to the same level position. To
keep the process positive is very important to be fair and consistent in how
you go about recruiting internally.
ACTIVITY 4.1
In some organisations in Malaysia, the employers, managers or
recruiters are more inclined towards hiring their own friends to fill job
vacancies even if there are many other qualified candidates. What is
your opinion on this? Discuss with your coursemates.
4.4 SELECTION
Once you have developed your recruitment plan, recruited people and now have
plenty of people to choose from, you can begin the selection process. The
selection process refers to the steps involved in choosing people who have the
right qualifications to fill a current or future job opening. Usually, managers and
supervisors will be ultimately responsible for the hiring of individuals, but the
role of human resource management (HRM) is to define and guide them in this
process. The four steps are explained as follows:
(b) Interviewing
After the HR manager and/or manager have determined which
applications meet the minimum criteria, he or she must select those people
to be interviewed. Most people do not have time to review twenty or thirty
candidates, so the field is sometimes narrowed even further with a phone
interview.
ACTIVITY 4.2
Before attending an interview, a candidate might prepare himself with
answers to potential questions. He would already have ready-made
answers before entering the interview room. In this scenario, what is
your opinion regarding the effectiveness of interviews for employers?
Discuss with your coursemates.
SELF-CHECK 4.3
External training includes any type of training that is not conducted in-house.
This is usually the last step in training, and it can be ongoing. It can include
sending an employee to a seminar to help further develop leadership skills or
helping pay tuition for an employee who wants to take a marketing class.
Several training methods can be used to fulfil training needs and objectives.
Listed below are a few methods that are frequently used.
SELF-CHECK 4.4
The performance is measured against such factors as job knowledge, quality and
quantity of output, initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility and health. Assessment should be confined to
the past as well as potential performance also.
(a) Supervisors
An employee is evaluated by the person who supervises him. For example,
an operator is evaluated by his supervisor; an executive is evaluated by a
senior executive or manager; and, a general manager is evaluated by the
board of directors of the company.
(b) Colleagues
Evaluation by colleagues is considered a reliable approach. This is because
colleagues are close to the employee being evaluated and can observe his
daily job performance. Evaluation by colleagues could add to the
effectiveness of evaluation made by supervisors. However, colleagues may
give a biased evaluation of the employee.
(c) Subordinates
Subordinates can provide important and detailed information regarding
the behaviour of their superiors due to their close relationship. The problem
is that subordinates may be afraid to provide accurate evaluation because
they are aware of the power held by their superiors and fear retaliation.
Let us now look at the methods for performance evaluation. This is as explained
in Table 4.1.
Method Explanation
Essay Writing This method requires the employee being evaluated to
explain about the strengths, weaknesses, earlier
performances, potential and suggestions in increasing
performance. But the results will usually portray the ability
of the writer. A good or poor performance is determined by
the writing skill and level of true performance of the
evaluated employee.
Critical Incidents A method of performance appraisal involving identifying
and describing specific events (or incidents) where the
employee did something really well or something requiring
improvement.
ACTIVITY 4.3
In evaluating the performance of a particular employee of an
organisation, it is very important that the evaluation given is clear,
accurate and fair because the performance evaluation will become the
guidance and determinant for an employee. In your opinion, who is the
most appropriate person to conduct a performance evaluation of an
employee?
4.7 COMPENSATION
An organisation can retain a capable employee if it offers rewards that fit the job
and needs of the employeeÊs personal objectives. Employee reward refers to the
payment granted to the employee as an exchange for the job that is carried out.
This reward may be financial or non-financial. In general, there are four types of
decisions of reward granting ă payment level, variable payment, payment
structure and employee benefits.
(i) Piecework payment plan is the payment based on the amount they
produce. The amount paid per unit is set at a level that rewards
employees for above-average production volume.
(iii) Profit sharing is the payment taken from a part of the organisationÊs
profit. This payment is divided among the employees and is usually
above the level of reward that they normally receive. The more profit
the organisation makes, the more reward the employees will receive.
ACTIVITY 4.4
If you have had or currently have a job, do you feel the compensation
plan motivated you? Why or why not? Discuss with your coursemates.
(c) Thirdly, the organisation needs to monitor the reaction of other employees
when one of them is terminated. This is because termination can affect the
performance and motivation of existing employees because it may increase
the sense of anxiety towards the security of their job.
4.8.2 Downsizing
Downsizing is a reduction in organisational size and operating costs executed by
management in order to increase organisational competence, efficiency and
effectiveness. Corporate downsizing results from both deprived economic
situations and company decisions to eliminate jobs in order to cut costs and
maintain or achieve specific levels of profitability.
4.8.3 Retirement
Retirement is the time when an employee decides to leave his job permanently.
An employee may select retirement for reasons other than the desire to
discontinue working. Employees may suffer ill health or incapacitating physical
problems that necessitate leaving because the employee is no longer able to
perform his job. Family difficulties and responsibilities may also require
retirement. An employer also may need employees to take early retirement in
order to cut costs and preserve the business. In some cases, companies who try to
cut costs and headcount may enquire employees to volunteer to retire.
ACTIVITY 4.5
An employee of an organisation was imposed disciplinary action for
committing breach of trust. In your view, if he promised to change his
behaviour and expressed regret over his actions, should he be given a
second chance? What is the most suitable and necessary action to take
in order to ensure that he will not repeat the mistake?
SELF-CHECK 4.5
Explain how managers minimise problems related to employee
termination.
INTRODUCTION
Communication in organisations includes all the means, both formal and
informal, by which information is delivered up, down, and across the system
of managers and employees in a business. These numerous manners of
communication may be used to distribute official information between
employees and management, to exchange unfounded information and rumours,
or anything in between.
According to Rue et al. (2000), a study found that 50 to 90 per cent of the time a
manager is used to communicate. Unfortunately, according to another study,
almost 70 per cent of business communications failed to achieve the objectives
desired.
(b) Encode
Encoding takes place when the sender translates the information to be
delivered into a series of symbols that can be identified and understood by
the receiver.
(c) Message
The message comprises symbols in the form of verbal, written or sign
language that symbolise the information to be delivered by the sender to
the receiver.
(d) Channel
Channel is the method of delivery from one person to another. The channel
must suit the message to be delivered to ensure that the communication
process occurs smoothly, effectively and efficiently.
(e) Decoding
Decoding is the process where the receiver translates the message received
into a form that can be understood and brings meaning to the receiver.
(f) Receiver
The receiver is the individual or party who receives the message delivered
by the sender. The message formed is based on the background of the
receiver.
(g) Feedback
It refers to the reaction of the receiver towards the message received from
the sender. It is a process of returning the message to the sender that
depicts the level of understanding of the receiver towards the particular
message. Providing feedback is the best way of showing that a particular
message has been received and whether the message has been understood
or otherwise.
SELF-CHECK 5.1
ACTIVITY 5.1
Some senior managers believe that they should rely on written
information and computer reports because these yield more accurate
data than face-to-face communication. Do you agree?
For the purpose of this module, we will only be discussing vertical and
horizontal communication.
SELF-CHECK 5.2
ACTIVITY 5.2
Have you ever encountered a situation of misunderstanding between
your employee and yourself, or between your manager and yourself?
What was your action? Share your answer with your coursemates.
There are three types of communication which are frequently used: verbal,
non-verbal and electronic communications.
There are many barriers which interfere with the formation of effective
communication including selective perception, disruption, emotions,
communication skills and suspicion.
Decoding Noise
Diagonal communication Non-verbal
Disruption Selective perception
Emotion Suspicion
Encode Verbal
Horizontal communication Vertical communication
Kinesics Vocal
INTRODUCTION
According to Williams (2000), motivation refers to the power that is able to move,
direct and enable a person to be diligent in their efforts to achieve the desired
goals. Employees who are motivated and happy about their jobs carry out their
responsibilities to the best of their ability and productivity increases as a result.
Some employees are motivated by monetary gains while others find recognition
and rewards personally motivating.
Need-based models are motivation models which emphasise the specific needs of
humans or the internal factors that drives the individual to direct or stop his
action. Need-based models explain motivation as a phenomenon which comes
from the individual himself (internally). There are three important models in this
approach, namely hierarchy of needs model, two-factor model and achievement
of needs model.
SELF-CHECK 6.1
2. Explain motivation.
Table 6.1 gives a detailed explanation for each level of the hierarchy of needs.
Need Explanation
Physiological This need exists at the lowest level of the hierarchy. These needs
Need are necessary to maintain life such as oxygen, food and water.
Organisations can help individuals to fulfil this need by providing
sufficient income for their employees to obtain food, shelter and a
comfortable working environment.
Safety Need This need is closely related to acquiring a safe physical and
emotional environment. Examples of this need are employment
network, health insurance and retirement plans which can fulfil
the safety needs of employees.
Social Need Social need contributes to the spread of tribal nature. Individuals
have needs for a sense of belonging, love, affection as well as for
relationships with family and friends, and companionship.
Esteem Need The needs at this level include the needs for acquiring status and
recognition. This need can be fulfilled through attaining success.
Esteem needs are fulfilled when one is given recognition and
respect by other people. For example, organisations can help to
fulfil this need through promotion or providing spacious
workstations to their employees.
Self-actualisation This need is at the highest level of the hierarchy. This need means
Need that people value high achievement based on their self-potential
by using their capability and interest to the maximum level in
order to perform the work in the environment. As an example,
successful completion of a challenging task can assist in satisfying
a personÊs self-actualisation needs.
MaslowÊs model identified that individuals have different needs which can be
motivated by different matters or activities. Unfortunately, this model can only
provide basic guidelines to managers. Many studies conducted thereafter found
that the hierarchy levels differ between individuals in different cultural
environments. When a particular need has been fulfilled it will no longer
motivate the behaviour of the employee.
This theory suggests that managers should use two approaches in order to
increase employee motivation. Firstly, they must ensure that hygiene factors
(such as work environment and salary) are policies that are clearly stated and can
be accepted by the employees. This practice will reduce the dissatisfaction of the
employees. Secondly, managers must use motivational factors (such as
recognition and additional responsibilities) as tools to increase satisfaction and
motivation.
This theory makes a distinction between what it calls motivational and hygiene
factors. Refer to Figure 6.4 for a description of what motivational and hygiene
factors are.
ACTIVITY 6.1
1. Most managers assume that if an employee is underperforming,
the reason must be due to the lack of motivation. What is the
problem with this assumption? Discuss with your coursemates.
(a) Expectancy is the belief that better effort will lead to increased
performance, for example, if I work harder the results of the performance
will be better.
(b) Instrumentality is the faith that if you perform well, you will receive a
valued outcome. In other words, the degree to which a first level outcome
will lead to the second level outcome.
(c) Valence is the importance that the individual places upon the expected
outcome.
This model suggests that in order to become a highly motivated person, the three
factors or beliefs must also be high. If any one of the factors declines, the overall
motivation will also decline. Managers are able to use this model to motivate
employees through systematic gathering of information regarding what
employees want out of their jobs by creating a clear and simple association
between rewards and individual performance as well as granting power or
authority for the employee to make decisions.
This theory appeals for a rational balance between an employeeÊs input (such as
hard work, skill level, acceptance and enthusiasm) and output (such as salary,
benefits and intangibles such as recognition). Have a look at the equity formula
in Figure 6.6.
To illustrate the equity formula, assume that two employees are doing the same
job and putting in equal amounts of input (say, time and effort). If employee X
gets a raise and employee Y does not, the latter may feel unfairly treated,
resulting in diminishing job satisfaction and quality of work.
This theory also states that the existence of inequality can result in work pressure
equivalent to the level of inequality felt by the employee. This pressure will
motivate a person to achieve equality or to reduce inequality.
(b) To provide challenges and standards that can be used to make evaluations;
and
(c) For stating something important and preparing the framework for
planning.
Both the positive and negative reinforcement can be used for increasing
desirable or required behaviour.
(c) Punishment
It implies removing positive consequences so as to lower the probability
of repeating undesirable behaviour in the future. For example, suspend
employees who break organisational rules after sufficient warning has been
issued.
(d) Elimination
This involves the absence of a positive outcome or effect, or withdrawing
the positive outcome that used to give effect from the desired behaviour.
ACTIVITY 6.2
Your manager tells you that the best way to ensure fairness in reward
distribution is to treat employee salary as confidential information.
How would you respond to this assertion? Discuss with your
coursemates.
SELF-CHECK 6.2
There are two main approaches which can be used to explain motivation ă
need-based and process-based approaches.
Need-based approaches explain that motivation exists and comes from the
individual himself (internally) and personal needs truly motivate people.
The need-based models discussed are the MaslowÊs hierarchy of needs model
and the two-factor model.
The four main process-based approaches are the expectancy theory, equity
theory, goal-setting model and reinforcement model.
INTRODUCTION
Leadership is a process of influencing other people to achieve group or
organisation goals. It is essential to understand that leadership is an essential
part of effective management. It is also important to understand that leaders are
different from managers.
According to Williams (2000), the main differences are that a leader emphasises
on the quality of work so that the treatment given is fair, has a long-run focus, is
more inclined towards changes, gives inspiration and is able to motivate other
people in overcoming their problems. Meanwhile, a manager emphasises more
on performing a matter in the correct way, has a short-run focus, maintains the
status quo and acts to solve other peopleÊs problems. Figure 7.1 illustrates the
differences between a manager and a leader.
This study found that leaders with a high level of consideration are
more inclined to have satisfied subordinates compared to leaders with
a low level of consideration.
(i) Leader-Member Relations ă the respect and trust that followers have
for the leader
(iii) Leader Position Power ă the control the leader has over subordinatesÊ
rewards
SELF-CHECK 7.1
1. Describe the four types of behaviour identified in Hershey
and BlanchardÊs situational leadership model. What are the
components of each?
ACTIVITY 7.1
Think of a leader you admire. What traits does this person have? Are
they consistent with the traits discussed in this topic? If not, why is this
person effective despite the different traits?
SELF-CHECK 7.2
Leaders are different from managers. The main differences are that leaders
emphasise more on performing tasks effectively while managers emphasise
more on performing tasks efficiently or correctly.
The main results from the studies on personality features of a leader found
that successful leaders usually have certain personal features that are better
when compared to followers.
These three studies linked the two main dimensions portraying the behaviour
of a leader, namely, task dimension and relations dimension.
Other than that, leadership styles associated with decision making gave
rise to three forms of leadership styles: autocratic style, laissez-faire and
democratic style.
Autocratic Transformational
Charismatic Visionary
Interactive Visionary leadership
Transactional
INTRODUCTION
Controlling is an important managerial function which all managers are required
to perform. Controlling is a managerial function which helps managers to ensure
that activities in the organisation are performed according to the plan.
Controlling also ensures efficient and effective use of organisational resources to
achieve organisational goals. Hence, it is a goal-oriented function.
SELF-CHECK 8.1
(b) Monitoring decisions and comparing them to the standards, that is, the
comparison of the organisationÊs actual performance against planned
performance; and
(c) Taking corrective actions to rectify any disadvantages and weaknesses that
occurred during the process of achieving the performance target that has
already been set.
ACTIVITY 8.1
You must have heard about the standards used in measuring the level
of performance in a particular organisation. What do you understand
about this term and do you know how that particular standard is
formed? Explain to your coursemates.
(a) Pre-control
Pre-control is also known as preventive control or feed-forward control. It
focuses on the regulation of inputs (human, material and financial
resources that flow into the organisation) to ensure that they meet the
standards necessary for the transformation process. Feed-forward controls
are desirable because they help managers prevent problems rather than
having to cure them later.
ACTIVITY 8.2
Explain the relationship between pre-control, concurrent control and
feedback control. Which method of control do you think is the best?
Discuss with your coursemates.
ACTIVITY 8.3
There are five forms of control that managers can use when implementing the
control process ă bureaucratic control, objective control, normative control,
concertive control and self-control.
In order to ensure that the organisation can achieve its goals, several
important perspectives must be controlled. They are finance, human
resource, quality and customers.
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Examine the differences between groups and teams;
2. Identify the advantages and disadvantages of teams;
3. Discuss the best time to form teams;
4. Distinguish the types of teams available in the current
environment;
5. Discuss the characteristics of teams; and
6. Discuss the phases involved in team development.
INTRODUCTION
The practice of teams is applied nowadays because there is indication showing
that teams are more proficient in performing tasks compared to individuals
when dealing with tasks that involve a variety of skills, considerations and
experiences. Many organisations have changed their structures in order to
develop teams to utilise the talents of the employees optimally. Besides that,
some management have discovered that a team is more flexible and responsive
towards changes in the environment compared to traditional structures.
The definitions above clarify that the success of a team depends on the
interdependent relationships and collective effort of the team members.
Therefore, team members have mutual influence and significant impact on each
other when working together.
Advantages Description
Enhanced customersÊ One of the ways teams help to enhance customersÊ satisfaction
satisfaction towards organisations is by forming a team that is specially
trained to fulfil certain needs of the customers. Through this
method, customers are directly connected to the team in order
to fulfil their needs.
Increased quality of Teams also assist organisations to increase the quality of
products and products and services. Unlike organisations with traditional
services structures where the management is fully responsible towards
decisions and performances, teams take direct responsibility
regarding the quality of products and services produced.
The need for speed One thing that makes the concept of teams popular these days
and efficiency is the need for speed and efficiency in designing and producing
products. In the present business environment, prompt
changes in customersÊ preferences demand that an organisation
has speed and efficiency to make the necessary changes.
Increased level of job The implementation of teams can also increase the levels of job
satisfaction satisfaction. It gives employees the opportunity to enhance
their skills. This is done by cross training. Cross training is an
exercise that trains team members to perform all or most of the
work done by other workers. This exercise allows teams to
function under normal conditions with no interruption even
with the absence or resignation of a team member.
Team members always enjoy job satisfaction due to leadership
responsibility which cannot be gained from traditional
organisations. Teams are allowed to determine their working
manner, scheduling, maintenance, equipment, leave schedule,
quality control and others. This freedom is very meaningful to
the workers.
Diversity in Teams share various advantages especially in the aspect of
decision decision making. Problems can be viewed from various
making perspectives since a team consists of individuals having
different knowledge, skills, abilities and experience. Diversity
from this angle is able to increase the probability of solving the
real problem.
Disadvantages Description
High turnover Turnover rate is high especially at the initial stage of a team
rate formation. A team is not necessarily accepted by everyone. Inability
to adapt to other members and the internal environment of a team
are the main factors for high turnover rates at the initial stage of
team formation. Besides that, inability to take responsibility,
inability to contribute effort and lack of experience are some other
factors that contribute to this disadvantage.
Leads to social This happens when employees fail to contribute towards job
loafing sharing. In other words, social loafing means that a person becomes
a sleeping partner in the team. Social loafing usually takes place
in a large team where it is difficult to identify and monitor the
efforts contributed by each member of the team. In other words,
members that practise social loafing will try hard to hide their
activities and this condition causes the phenomenon of social
loafing which is difficult to be detected.
Leads to the The condition that leads to the behaviour of self-restriction is
behaviour of self- when there are team members who do not have their own opinions
restriction or views and do not take part in discussions. All these can
diminish the performance levels of the team. This matter is seen to
be similar to the condition of social loafing but actually, it is not.
Social loafers try to ensure that other members do not know about
their activities but the behaviour of self-restriction does not.
ACTIVITY 9.1
Secondly, a team is needed for tasks that cannot be carried out individually but
through the merging of these individuals. This means that a team is needed
when a task is complex, needing diversity of perspectives or requiring repetitive
interaction with other people in order to complete it.
Thirdly, a team can be used when rewards can be provided for teamwork or
team performance. Team rewards depend on the team performance rather than
individual performance. This is the key to providing rewards for the team
behaviour or effort. If the level of reward is not in line with the level of
performance, the team will not be able to function as required.
Fourthly, a team can be used when there are many resources readily available.
Resources needed by teams include training, time, place and collaboration
methods, equipment and consistent information and feedback regarding
teamwork processes and work performance. Failure in obtaining these resources,
such as lack of training to support the transition from individual work to
teamwork will result in the failure of team implementation.
ACTIVITY 9.2
Let us now learn about these different types of teams in greater detail.
SELF-CHECK 9.1
Characteristic
Description
Aspects
Team Norms Team norms are informal rules or standards which are agreed upon
in order to control the behaviour of team members. Team norms
concern how team members will interact, communicate and conduct
themselves as members of the team. Norms express intentions; they
help team members agree on how they would like to get along before
situations emerge that might otherwise prevent them from getting
along.
Team Unity Team unity refers to how far team members are attracted to becoming
members of the team and motivated to stay permanently in the team.
Team unity is able to sustain and reduce the turnover rate of team
membership. When teams possess high unity levels, each member is
more motivated to contribute to the team and is confident other team
members will contribute as well. This will accelerate the achievement
of high performance.
Team Conflict Conflicts and misunderstandings do exist in any teams. Conflicts can
be caused by fighting over limited resources, arguments regarding
certain issues, discrepancy in opinions and others. Usually, conflict is
viewed as a negative matter. The key here is that, rather than trying
to avoid conflicts in a team, try to ensure that a team faces a suitable
conflict instead.
Team The development and growth of a team will undergo four phases.
Development The phases consist of forming, storming, norming and performing as
depicted in Figure 10.3. However, not all teams who undergo these
four phases are able to produce high levels of performance. If a team
is not perfectly managed, the team will face a decline and quickly go
through the phases of de-norming, de-storming and de-forming.
ACTIVITY 9.3
In your opinion, in what way do the characteristics of teams relate to
the teamÊs ability to achieve success in attaining its goals? Discuss this
with your coursemates.
(a) Forming
This is the beginning of the first meeting among team members, forming
the first perceptions and trying to discover the feelings and conditions if
they continue to become members of the team.
(b) Storming
Storming is the second development phase that is characterised by conflicts
and disagreement where team members have different opinions regarding
with, what and how a task should be carried out.
(c) Norming
Norming is the third phase in the development of a team. Each member
will start to resolve any conflict or misunderstanding as one of their roles as
a member of the team.
(d) Performing
Performing is the final phase of the team development process. During
this phase, performance will start to increase since the team becomes
more matured and fully functional. At this stage, members must be fully
committed and start thinking as a member of the team.
(e) De-norming
In de-norming, which is the repetition of the norming phase, team
performance starts to decline in terms of time, size, scope, goal and
membership.
(f) De-storming
De-storming is a condition where the team comfort starts to decline. Team
unity becomes weaker when team members refuse to follow the team
norms and do not participate in team activities.
(g) De-forming
In the de-forming phase, members of the team will position themselves in
order to control fragmentation in the team. Thus, factions start to form in
the team. Members will avoid meeting each other and the team leader.
ACTIVITY 9.4
We have already identified the phases of formation and the downturn
of a team. Based on your understanding of what you have learned so
far, what are the factors that influence the level of performance in
teamwork? Discuss with your coursemates.
It has its own advantages and disadvantages. If a team is formed at the right
time, the advantages gained might outweigh the disadvantages.
Besides that, organisations also need to have knowledge regarding the issues
that will help towards forming high-performance teams.
References
Bateman, T. S., & Snell, S. A. (2008). Management: Building competitive
advantage (8th ed.). Boston: Irwin-McGraw Hill.
Carpenter, M., Bauer, T., & Erdogan, B. (2010). Principles of management, version
1.1. Nyack, NY: Flat World Knowledge.
Jones, G. R., & George, J. M. (2007). Contemporary management (5th ed.). Boston.
Porter, L. W., Black, J. S., & Hitt, M. S. (2004). Management. Harlow: Pearson
Education.
Rue, L. W., & Byars, L. L. (2004). Management: Skills and application (11th ed.).
Boston: Irwin-Mc-Graw-Hill.
OR
Thank you.