LECTURE 6

Goals and Plans

 A goal is a desired future state that organisation attempts to
realize
 A plan is a blueprint for goal achievement and specifies the
necessary resource allocations, schedules, tasks, and other
actions

Purposes of Goals & Plans

Legitimacy 合法性 – A mission symbolises legitimacy to external
audiences as it describes the reason for existence of a company.
Source of motivation and commitment 激励和承诺的来源 –
Goals & plans help reducing uncertainty and clarifying what
employees should accomplish.
Resource allocation 资源分配 – Goals and plans help managers
decide where they need to allocate resources such as employees,
money & equipment.
Guides to action 行动指南 – goals & plans provide sense of
direction. They focus attention on specific targets & direct employees
effort towards important outcomes.
Rationale for decisions 决策的基本原理 – Managers can make
decisions in accordance with desired outcomes.
Standards of performance 绩效标准– Goals define desired
outcomes for the organization, they also serve as performance
criteria.
The Organizational Planning Process 组织规划过程
1. Develop the Plans
 Define mission, vision
 Set goals
2. Translate the Plans
 Define tactical plans and objectives
 Develop strategy map
 Define contingency plans & scenarios 定义应急计划和情景
 Identify intelligent teams 识别智能团队
3. Plan Operations 计划操作
 Define operational goals & plans
 Select measures and targets 选择措施和目标
 Set stretch goals 设定挑战目标
 Crisis planning 危机规划
4. Execute the Plan .执行计划
Use:
 Management by objectives 目标管理
 Performance dashboards 性能仪表板
 Single use plans 单一用途计划
 Decentralised responsibility 分散的责任
5. Monitor & Learn
 Hold planning reviews 举行规划审查
 Hold operational reviews 举行运营审查
  价格实惠且质量上乘
 高等教育

 负担得起–通过规模经济获得有竞争力的学费
 质量——MQA 批准的所有项目；高就业能力

质量
 讲师的课程计划——讲座和辅导
 讲师致力于履行自己的职责

 外部调节
 大学。学术人员

Criteria for effective goals 有效目标的标准

Specific & measurable 具体且可测量: Goals should be precisely
defined and allow for measurable progress. For example, to achieve
sales target of RM250,000 per month.

Defined time period 定义的时间段: The date for goal attainment

must be specified. For example, to meet the coursework deadline on
28/06/2021.

Cover key result areas 涵盖关键结果领域:: Managers should

establish goals on key areas that bring the major result (profit
contribution).

Challenging but realistic 挑战但现实: When goals are unrealistic,

they set employees for failures & lead to decrease in morale. If goals
are too easy, employees may not feel motivated.

Linked to rewards 与奖励挂钩: The ultimate impacts are

promotion, salary increase and rewards based on goal achievement.

Management by Objectives
  Is defined in 1954 by Peter Drucker.
 IS a method whereby managers and employees define objectives
for every department, project, and person
 Use them to monitor subsequent performance.
Four major activities must occur in order for MBO to be successful:
1. Set goals:
 Setting goals is the most difficult step in MBO
 Should involve employees at all levels.
 A good goal should be concrete and realistic, provide a specific
target and time frame, and assign responsibility.
2. Develop action plans:
 Defines the course of action needed to achieve the stated goals.
 Action plans are made for both individuals and departments.

3. Review progress:
 Progress review is important to ensure action plans are
working.
 This review allows managers /employees to see if they are on
target and if corrective action is needed.

4. Appraise overall performance 评估整体绩效:

 Final step in MBO
 Is to evaluate whether annual goals have been achieved for both
individuals and departments.
 Success or failure to achieve goals is part of the performance
appraisal system.
 includes resignation 辞职, salary increases and other rewards
MBO Benefits
 Focuses managers and employees efforts on activities that will
lead to goal attainment

 Can improve performance at all company levels

 Improves employees motivation

 Aligns individual and departmental goals with company goals

What are the problems of MBO?

 Constant changes prevent MBO from taking hold. (the
environment and internal activities must have some stability for
performance to be measured and compare against goal. Setting
new goals every few months allow no time for action and
appraisal to take effect )

 Poor employer-employee relations reduce MBO effectiveness.

( because of an element of distrust that may be present between
manager and workers)

 Strategic goals may be displaced by operational goals.

 Too much paperwork dampens MBO energy.

Lecture 7
Vertical structure 垂直结构
1. Work Specialization 工作专业化
 Work can be performed more efficiently if employees are
allowed to specialize.
 called division of labor 劳动分工,
 The degree to which organizational jobs are subdivided into
individual tasks.
 Production is efficient because employees perform small, well-
defined tasks.

2. Chain of Command 指挥链

 Is an unbroken line of authority that links all individuals in the
organization
 Specifies who reports to whom.
 illustrates the authority structure of the organization. 说明了组
织的权力结构

It is associated with two underlying principles 基本原则相关联:

 Unity of command 统一指挥 means that each employee is held
accountable to only one supervisor.
 The scalar principle 标量原理 refers to a clearly defined line of
authority in the organization that includes all employees.
Authority 授权
 Is the formal and legitimate right of a manager to make
decisions, issue orders, and allocate resources to achieve
organizational outcomes.

Responsibility 责任
 Is the duty to perform the task or activity an employee has been
assigned.

Accountability 问责制
 is the mechanism through which authority and responsibility
are brought into alignment 权力和责任相一致的机制
 Those with authority and responsibility are subject to justifying
task outcomes to those above them in the chain of command.

Delegation 授权
 Is another concept related to authority;
 it is the process managers use to transfer authority and
responsibility to positions below them in the hierarchy.
Line authority 线路管理机构
 Means that managers have formal authority to direct and
control immediate subordinates.
Staff authority 工作人员权限
 Is narrower than line authority
 Includes the right to advise, recommend, and counsel in the staff
specialists' area of expertise.

3. Span of Management (or control) 管理（或控制）范围

  is the number of employees reporting to a supervisor

 determines how closely a supervisor can monitor subordinates

 Tall Organizations have more levels and narrow span

 Flat Organizations have a wide span and fewer levels

 The traditional view holds that the appropriate span of control is

7 per manager

Factors associated with less supervisor involvement and larger

span of control 较少的主管参与相关的因素
 Work is stable and routine 工作稳定且例行公事

 Subordinates perform similar work 下属执行类似的工作

 Subordinates in single location 单个位置的下属

 Highly trained and need little direction

 Support systems and personnel are available to manager

 Little supervision is required 几乎不需要监督

 Managers’ personal preference favor a large span 管理者的个人

偏好倾向于大跨度

4）Centralization and Decentralization 集权与分权

Centralization 集中化 – decision authority is located near the top of
the organization

 (important decisions usually are made at the top)

Decentralization 去中心化 – decision authority is pushed

downward to all levels

 (more decisions are made at lower level. Ideally decision making

occurs at the level of the people who are most directly affected
and have the most relevant knowledge about the work)
important when the business environment is fast changing and
decisions must be made quickly and well)
Factors that influence centralization versus decentralization: 影响集权
与分权的因素：
 Greater change and uncertainty are usually associated with
decentralization
 The amount of centralisation or decentralisation should fit the
firm’s strategic
 In time of crisis or risk of company failure, authority may be
centralised at the top

5）Departmentalization 部门化
  Is the basis for grouping individuals into departments and
departments into the total organization.
 Managers make choices about how to use the chain of command
to group people together to perform their work.
Three approaches to structural design reflect different uses of the
chain of command in departmentalization:
 Divisional 分区
 Matrix 矩阵
Vertical Functional Approach 垂直功能
 Functional structure is the grouping of positions into
departments based on similar skills, expertise, and resource use.
 Such as accounting, human resources, production and
marketing.
 The functional structure is a strong vertical design.
 Information flows up and down the vertical hierarchy, and the
chain of command converges (link-up) at the top.
 People in a department communicate with others in the same
department to coordinate work and accomplish tasks or
implement decisions.

Advantages
  Grouping employees by common task permits efficient resource
use and economies of scale.
 Departments enhance in-depth skill specialization and
development
 Centralized decision making at the top provides unified
direction.
Disadvantages
 Include barriers that exist across departments resulting in poor
communication and coordination and slow response to changes.
 Decisions concentrating at top of hierarchy, creating delay

Departmentalization: Divisional Approach 部门化：分部法

Divisional structure
 Departments are grouped together based on organizational
outputs.
 Diverse departments are brought together to produce a single
organizational output.
 Called a product structure, program structure, or self-contained
unit structure.
 Perform different tasks, use different technologies or serve
different customers.
 Created as self-contained units with separate functional
departments for each division.
{For example, separate engineering departments are created
within each division, and each department is similar and focuses
on a single product.}
Advantages:
 The organization is flexible and responsive to change because
each unit is small and tuned in to its environment.
 Concern for customer's needs is high
 Coordination across functional departments is better because
employees are grouped and committed to a product.
Disadvantages:
 Coordination across divisions is often poor.
 Duplication of resources across divisions
 Less technical depth and specialization

Departmentalization: Matrix Approach

  Combines aspects of both functional and divisional structures
simultaneously in the same part of the organization.
 The matrix has dual lines of authority.
 The matrix structure provides a formal chain of command for
both the functional (vertical) and divisional (horizontal)
relationship
 The success of the matrix structure depends on the abilities of
people in key matrix roles.
 Two-boss employees report to two supervisors and must resolve
demands from the matrix bosses.
 The top leader oversees both the product and functional chains
of command and is responsible for the entire matrix
Advantages :
 Effective in a complex, rapidly changing environment in which
flexibility and adaptability are important.
 Conflict and frequent meetings allow new issues to be raised
and resolved.
 The matrix makes efficient use of human resources because
specialists can be transferred from one division to another.
Disadvantages:
 Frustration and confusion arising from the dual chain of
command can be a problem, as can conflict between the two
sides of the matrix, and time lost in meetings.
 Many meetings, more discussions than action.

Organising for horizontal coordination 组织横向协调

The need for coordination
 As organizations grow and evolve, new positions and
departments are added, and senior managers have to find a way
to tie all of these departments together.
 Coordination refers to the quality of collaboration across
departments.
 It is required whether there is a functional, divisional, or team
structure.
 Coordination is the outcome of information and cooperation.
 Managers can design systems and structures to promote
horizontal coordination.
Coordination methods include the following
 Coordination can also be improved when there is effective
communication system.
Coordination by standardization 通过标准化进行协调
 Involves establishing common rules and procedures that apply
to everyone.
 It constrains actions and integrates various units by regulating
what people do.
 Rely on formalization – the presence of rules and regulations
governing how people in the organization interact

Coordination by plan
 Establishing goals and schedules for interdependent units.
 Interdependent units are required to meet deadlines and
objectives that contribute to a common goal
  It does not require a high degree of stability and routinization.
 Interdependent units are free to modify and as long as they to
meet deadlines and targets required for working with others
Coordination by mutual adjustment
 This involves feedback and discussion to determine how to
approach problems and solutions.
 This allows for flexible coordination to deal with novel problems.

Coordination and communication

 There are substantial (huge) information flows
 Organizations need to develop structures for processing
information
Two general strategies for this:
 To reduce the need for information
 To increase its capacity to handle more information.
Reducing the need for information
1. Creating slack resources
 Slack resources are extra resources that can be used in a pinch.
2. Creating self-contained tasks
 This allows organizations to reduce the need for some
information. Creating project team where information is shared
by all members, without having to go through the various
functional departments
Increasing information processing capability
 Invest in information systems
  create horizontal relationships which can foster coordination
across different units
Horizontal processes include:
 direct contact among managers who share a problem
 liaison roles, handle communications between two departments
 task forces, or groups of representative from different
department , brought together temporarily to solve a common
problem
 teams
 product, program, or project managers
 matrix organization
Direct contact – it involves mutual adjustment among managers who
share a problem.
Liaison roles – it is a specialised jobs to handle communications
between two departments.

LECTURE 9
A Simple Model of Motivation
  NEED – Creates desire to fulfill needs (food, friendship,
recognition, achievement)
 BEHAVIOUR – Results in actions to fulfill needs
 REWARD – Satisfy needs, intrinsic & extrinsic rewards
 FEEDBACK – Reward inform person whether behaviour was
appropriate and should be used again
People have basic needs such as for food, achievement, or money.
Needs motivate specific behavior designed to fulfill those needs.
Feedback tells people whether they were successful in fulfilling their
needs. If so, they feel rewarded by their success.
 Intrinsic rewards are the satisfactions a person receives in the
process of performing a particular action.
 Extrinsic rewards are given by another person, typically a
manager, and include promotions, pay increases, and extra time
off.
 The importance of motivation is that it can lead to behaviors
that reflect high performance within organizations.
 Managers have to find the right combination of motivational
techniques and rewards to keep workers satisfied and
productive in a variety of organizational situations.

Motivation Theories (4 Content Perspectives on Motivation)

  Content theories emphasize the needs that motivate people;
people have basic needs such as food, achievement, or
monetary reward.
 These needs translate into an internal drive that motivates
specific behaviors in an attempt to satisfy the needs.
 To the extent that managers understand employees’ needs, they
can design reward systems that meet them direct employees’
energies and priorities toward attaining organizational goals.

1) Maslow’s Hierarchy of Needs Theory

 Abraham Maslow’s hierarchy of needs theory proposes that
humans are motivated by multiple needs, existing in a
hierarchical order.
 There are five basic human needs which are physiological needs,
safety needs, belongingness needs, esteem needs and self-
actualization needs.
 The lower-order needs take priority in that they must be
satisfied before higher-order needs are activated.
 The needs are satisfied in sequence; once a need is satisfied, it
declines in importance and the next higher need is activated.
 If a lower-level need ceases to be satisfied, however, it will take
precedence over higher order needs until it is once again
satisfied.
Low order needs:
 Physiological needs: These most basic human physical needs
include food, water, and oxygen.
 Safety needs: These are needs for a safe and secure physical and
emotional environment and freedom from threats.
Higher-order needs:
 Belongingness needs: These are desire to be accepted by peers,
have friendships, be part of a group, and be loved.
 Esteem needs: These are desire for a positive self-image and to
receive attention, recognition, and appreciation from others.
 Self-actualisation needs: These needs include the need for self-
fulfillment, which is the highest need category.

Alderfer’s ERG Theory

  ERG theory was developed by Clayton Alderfer
 A modification of Maslow’s theory in an effort to simplify it and
respond to criticisms of its lack of empirical verification.
ERG theory identified three categories of needs:
 Existence needs. These are the needs for physical well-being.
 Relatedness needs. These pertain to the need for satisfactory
relationships with others.
 Growth needs. The needs that focus on the development of
human potential and the desire for personal growth and
increased competence.
 The ERG model and Maslow’s need hierarchy are similar as both
are hierarchical and presume individuals move up the hierarchy
one need at a time.
 The ERG model contains a frustration-regression principle,
suggesting that failure to meet a higher-order need may trigger
regression to an already fulfilled lower-order need.
 For example, a worker who cannot fulfill a need for personal
growth may revert to a lower-order social need and redirect his
or her efforts toward making a lot of money.
 The ERG model suggests that individuals may move down as well
as up the hierarchy depending on their ability to satisfy needs.

Herzberg’s Two-Factor Theory

  This prompted the idea that two different factors influenced
work motivation and an employee’s behavior at work

Hygiene factors relate to lower-order needs and include things such as

working conditions, pay and security, company policies, supervisors,
and interpersonal relationships.
 When hygiene factors are poor, work is dissatisfying.
 Good hygiene factors remove the dissatisfaction, but do not
cause satisfaction or motivation. Instead, employees are neutral
toward work.
Motivators relate to higher-order needs and include things such as
achievement, recognition, responsibility, the work itself, and the
opportunity for personal growth.
 When motivating factors are present, workers are highly
motivated and satisfied.
 The absence of motivating factors removes satisfaction, but does
not cause dissatisfaction. Instead, employees are neutral toward
work.
The manager’s role is to provide hygiene factors to meet basic needs
and use motivators to meet higher-level needs to propel employees
toward achievement and satisfaction.
McClelland’s Acquired Needs Theory
 David McClelland developed acquired needs theory, which
proposes that certain types of needs are acquired or learned
during an individual’s lifetime.
 People are not born with these needs, but may learn them
through life experiences.
McClelland addressed three categories of needs:
 Need for Achievement. The desire to accomplish something
difficult, master complex tasks, and surpass others.
( entrepreneur)
 Need for Affiliation. The desire to form close personal
relationships, avoid conflict, and establish warm friendships.
( project manager- need excellent human skills)
 Need for Power. The desire to influence or control others, be
responsible for others, and have authority over others. ( top
level in the organizational hierarchy)
LECTURE 11
The Meaning of Control
 Control, including quality control, also involves office
productivity, such as improved customer service, elimination of
bottlenecks, and reduction in paperwork mistakes.
 Control is to ensure conformance to plan.( make sure that
activities are going as planned )
 Lack of effective control can seriously damage an organization’s
health and threaten its future. ( impacts )
 Organizational control is the systematic process through which
managers regulate organizational activities to make them
consistent with expectations established in plans, targets, and
standards of performance
 To effectively control an organization, managers (or workers)
require information about performance standards, actual
performance, and actions to correct deviations
Strategies for achieving organizational control
William Ouchi states that managers can apply three broad strategies
for achieving organizational control:
 Bureaucratic control
 Market control
 Clan control

Bureaucratic control
  It involves the uses of formal rules, standards, hierarchy,
legitimate authority. ( includes such items as budget, statical
report , performance appraisals to regulate behavior and
results )
 It works best where tasks are certain and workers are
independent.

Market control
 It involves the uses of prices and competition.
 It works best where tangible output can be identified and
market can be established between parties.
Clan control (or cultural control)
 It involves culture, shared values, beliefs, expectations, and
trust.
 It works best where there is “no one best way” to do a job and
where employees are empowered to make decisions.

Approaches to Bureaucratic control

Feed forward control
 Takes place before operations begin and includes policies,
procedures, and rules designed to ensure the planned activities
are carried out properly. It is sometimes called preliminary or
preventive control.(before) ( aim is to prevent problems before
they arise )
Examples: inspecting of raw materials and proper selection and
training of employees)
Concurrent control
 takes place while plans are being carried out (during)
 Is the heart of any control system (in factories, materials must
be available when and where needed, and breakdown in the
production process must be repaired immediately ) , in an airline
terminal, the baggage must get to the right airplane before flight
depart .
 directing, monitoring, and fine-tuning activities as they are occur
 advances in information technology have created powerful
concurrent controls
(for example , in production facilities , monitoring system that tract
errors per hour , machine speed , and other measures allow manager
to correct small production problems before they become disaster)
Feedback control
 focuses on use of information about results to correct deviations
from the acceptable standard after they arise. (after)
Other types of bureaucratic control
 Budgetary controls
 Financial controls
Management audit
 This involves the evaluation of the effectiveness and efficiency of
various systems within an organization.( from the social
responsibility programs to accounting system)
 external audit ( external audit of other organization) - evaluation
conducted by one organization, such as a CPA firm, on another
 may conduct external audit of a competitor for strategic
decision-making purposes
 internal audit - periodic assessment of a company’s own
planning, organizing, leading, and controlling processes
 assess what the company has done for itself and its customers
 reviews the company’s past, present, and future, including any
risks the organization should be prepared to face
Budgetary controls
 Budgets are reports that list planned and actual expenditures
 Budget reports highlight the variance between budgeted and
actual amounts
 Budgets are created for all departments and divisions in an
organization
 Types of Budgeting: Expense Budge, Revenue Budget, Cash
Budget, Capital Budget
(BC CONT,D) Activity-based costing (ABC)
 cost accounting method that identifies streams of activity and
then assigns expenses to those areas of activity
 employees break down what they do to define basic activities
 total expenses computed by traditional accounting
 total amounts spread over the activities according to time spent
on each
 provides an accurate picture of how costs should be charged
 highlights where wasted activities are occurring
Financial controls
 This involves reviewing performance and highlighting potential
problems
Most common financial statements
 Balance Sheet ( shows the financial picture of a company at a
given time . This statements itemize 3 elements 1) asset, 2 .
Liabilities , 3 stockholder’s equity . The relationship among these
3 elements is as follow : asset = liabilities + stockholder’s equity )
 Income Statement or Profit & Loss Statement (show the
company ‘s revenues & expenses during a particular period.)
 Managers need to be able to evaluate financial reports
 Comparisons allow managers to see improvement and focus on
competition
 Ratios and statistics highlight relationships
 Ratios are stated fractions or proportions.
Downside of bureaucratic control
 control system can lead to dysfunctional behavior
Rigid bureaucratic behavior - acting in ways that make one look good
on the control system’s measures
 may result in rigid, inflexible behavior geared toward doing only
what the system requires
 Help employee stay out of trouble by following the rules ( this
can make the entire organization slow to act , leading to poor
customer service )
 For e.g. complying to ISO9000 at the expense of fulfilling
customers’ demand
Tactical behavior - behavior aimed at “beating the system”
 A common type of behavior is to manipulate or falsify
performance data (e.g. change figures)
 falsify their predictions or requests for the future (budget)
 concern about individual rather than organizational
performance
Resistance to control – often people strongly resist control systems
because:
 control systems increase the accuracy of performance data and
make employees more accountable for their actions (threaten
people’s job security and status)
 control system can change expertise and power structures (MIS
can provide valuable for decision making) as a result, people can
lose decision making authority , power, expertise
 control system can change the social structure (competition is
created and disrupt social groups)
  control system may be perceived as an invasion of privacy (lead
to lawsuit)

Market control
Involves the use of economic forces - and the pricing mechanisms that
accompany them - to regulate performance
As a market for these transactions becomes established:
 price becomes an indicator of the value of the product or service
 price competition effectively controls performance
The basic principles underlying market control operate at the
corporate level, the business unit (or department) level, and the
individual level
Market controls at the corporate level ( large , diversified companies
use market control to regulate independent business units )
 used to regulate independent business units
 business units treated as competing profit centers
 Top executive may place very few bureaucratic controls on
business unit managers but use profit and loss data to evaluate
performance
Market controls at the business unit level
 regulates exchange among departments and functions
 transfer price - price charged by one unit in the organization for
a product or service that it supplies to another unit of the same
organization. Ideally, reflects the price that the receiving
 business unit would have to pay for that product or service in
the marketplace

 provide natural incentives to keep costs down when

organization has the option to outsource products and services
to external partners

Market controls at the individual level ( used at the individual level to

determine wage levels for the skills that employees possess )
 market rate is often the best indicator of an employee’s
potential worth
 provide a natural incentive for employees to enhance their skills
and offer them to potential firms
 boards of directors use market controls to manage CEOs
incentives on top of base salary include:
 bonus tied to short-term profit targets
 long-term incentives linked to the firm’s share price, usually
through stock options
Clan Control: The Role of Empowerment and Culture
Managers are discovering that control systems based solely on
bureaucratic and market mechanisms are insufficient for directing
today’s workforce because
 Employee’s jobs have changed (from standardised jobs to
problem solving & judgment)
 The nature of management has changed (employees have more
knowledge than management)
 The employment relationship has changed (from better welfare
to more engagement & challenge)
Because of this, empowerment has become a necessary aspect of a
manager’s repertoire of control
 ( managers empower employee to make decision and trust that
they will act in the best interest of the firm . )
 (creating a strong culture of high standard and integrity so that
employees will exercise effective control on their own )
Clan control involves creating relationships built on mutual respect
and encouraging each individual to take responsibility for his or her
actions
 Employees work within a guiding framework of values, and they
are expected to use good judgment
 The emphasis in an empowered organization is on satisfying
customers, not on pleasing the boss ( example : Starbuck relies
partly on clan control to shape and guide employee behavior . It
emphasizes satisfying customers more than pleasing the bosses )
 Clan control takes a long time to develop and an even longer
time to change