Faculty of Business & Management

SEM 1/2011 PRINCIPLES OF MANAGEMENT BBPP1103

Name

Ahmad Shafiq Bin Othaman

MATRICULATION NO IDENTITY CARD NO. TELEPHONE NO. E-MAIL LEARNING CENTRE

: : : :

880913015513 012-7295049 shafiqothaman@oum.edu.my

Bangi Learning Centre Open University Malaysia Jalan 7/7B, Seksyen 7 43650 Bandar Baru Bangi,Selangor.

PRINCIPLES OF MANAGEMENT BBPP1103

Contents
1 INTRODUCTION ........................................................................................................................................ 3 1.1 Overview ............................................................................................................................................. 3 1.2 Company Background ......................................................................................................................... 3 2.0 2.1 Customer Service Objectives ........................................................................................................ 4 Commitments Towards Objective................................................................................................ 5 Specific Objectives ................................................................................................................ 5 Measurable Objectives......................................................................................................... 5 Attainable Objectives ............................................................................................................. 5 Realistic Objectives .............................................................................................................. 5 Timely Objectives ................................................................................................................. 5

2.1..1 2.1..2 2.1..3 2.1..4 2.1..5 3.0

Building Individual Commitment ...................................................................................................... 6 Meeting or Discussion ............................................................................................................... 6 Reasonable Objective................................................................................................................ 7 Announcement Of Objectives ................................................................................................... 7 Support From Upper Management .......................................................................................... 7

3.0.1 3.0.2 3.0.3 3.0.4

4.0 Forming Action Plan ................................................................................................................................ 8 4.0.1 4.0.2 4.0.3 4.0.4 Training ..................................................................................................................................... 8 Company Leave Policy............................................................................................................... 8 Staff Uniform ............................................................................................................................. 9 Time management ................................................................................................................... 9

5.0 Monitoring Progress ............................................................................................................................... 9 5.1 5.2 Determines Long term and Short term Objectives ..................................................................... 10 Obtaining Performance Feedback from Participating Parties .................................................... 10

6.0 Maintaining Flexibility ........................................................................................................................... 10 6.1 6.2 6.3 6.4 7.0 Always look for a way to be innovative- ..................................................................................... 11 Listen to all ideas that circulate in your company. ..................................................................... 11 Never become complacent. ........................................................................................................ 11 Investment in another sector ..................................................................................................... 11 Conclusion ....................................................................................................................................... 12

REFERENCES ................................................................................................................................................ 13 2

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1 INTRODUCTION
1.1 Overview
Planning is a basic requirement and important input of a management process. According to Robbins, 1996 planning involves the definition of objectives, the formation of strategies and action plans to coordinate the organization activities. There are 5 main processes involves in effective planning (William, 2000).The 5 main process are shown below: Determining the objectives that need to be achieved Building individual commitment towards achieving the goals Forming action plans Monitoring progress Maintaining Flexibility

The characteristics of planning are based on objectives and policies, concern on future activity and it is decision making process. The importance of planning function is provides direction, reduces crisis management, allows focus and personal energy direction, provides the framework for informed decision making and reduces crisis management.

1.2 Company Background

KLIA transit is a rail service linking Kuala Lumpur,the capital of Malaysia and KL International Airport(KLIA) as well as three other stops in between. It is operated by Express Rail Link Sdn Bhd (ERL) and shares the same tracks as the KLIA Express but KLIA Express only provides direct nonstop services between Kuala Lumpur and KLIA.

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Express Rail Station (ERL) Vision: To be premier and preferred surface transportation mode providing international standards of service and recognized internationally as the top services provider in air rail connection. Express Rail Link (ERL) Mission: To provide premium high speed rail link services between KL CAT and KLIA To meet the expectation of airliner traveler To promote Kuala Lumpur as a business and tourist destination To provide a comfortable, reliable and safe services

2.0

Customer Service Objectives

The first process of effective planning is determining the objectives to be achieves. Setting objectives is a specific management tool that creates a target for a company to achieve. Objectives are basically goals that are set by organizations so that the whole organization can work towards its fulfillment. Objectives are very important to the organization. Objectives provide a clear understanding of what is to be achieved by the organization. To achieve ERL Vision and Mission, Customer services department have set Customer Service Objectives. Express Rail Link (ERL) Customer Service Objectives are: To increase customer service staff delivery services in knowledgeable, professional and timely manner by 80 percent in a year. To increase the number of customer service staff attendance by 60 percent in a year. To increase customer service staff satisfaction and self actualization by 80 percent in one year.

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2.1

Commitments Towards Objective

A simple acronym used to set objectives is called SMART objectives. SMART stands for Specific, Measurable, Attainable, Realistic and Timely.

2.1..1 Specific Objectives

There are several key factors which should be present in the objectives that are set in order for them to be effective. They should be specific. In other words, they should describe specifically the result that is desired. Instead of "provided best customer services" the objective should be "improve customer services level to the highest level time by times"
2.1..2 Measurable Objectives

The second example is much more specific and also addresses the second factor measurable. In order to be able to use the objectives as a part of a review process it should be very clear whether the person met the objective or not. Lets say to improve customer service officers individually to achievable customer satisfaction
2.1..3 Attainable Objectives

The next important factor to setting objectives is that they be achievable. For instance, an objective which states "100 percent customer satisfaction" isn't realistically achievable. It's not possible to expect that everyone must be 100 percent satisfied with their service. A goal of "12 percent improvement in customer satisfaction" is better but may still not be achievable if it's assigned to the database developer. They aren't likely to have enough influence over the customer interaction process to improve satisfaction by 12 percent.
2.1..4 Realistic Objectives

This leads into the next factor realistic. Realistic objectives are objectives that recognize factors which cannot be controlled. Said another way, realistic goals are potentially challenging but not so challenging that the chance of success is small. They can be accomplished with the tools that the person has at their disposal.
2.1..5 Timely Objectives

Timely objectives mean setting deadlines for the achievement of the objectives. A deadline creates the necessary focus, helps set priority and prompts action. Objectives should provide a
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time frame indicating when the objectives will be measured or a time by which the objective will be meet. Including a time frame in the objectives helps in planning and evaluating programs. (http://www.techrepublic.com/article/use-smart-goals-to-launch-management-by-objectivesplan/5683094)

3.0

Building Individual Commitment

Building Individual Commitment is the second and the most important step to achieve company objectives. Employees who are engaged in their work and committed to their organizations give companies crucial competitive advantages including higher productivity and lower turnover. There is four ways that can be used to establish commitment in the members of an organization to achieve the objectives. Not all employees will be motivated to complete a work task or assume individual responsibility for agreed outcomes. It is important to distinguish between the three levels of 'motivation' or resistance to work.

Figure 1 Motivation and levels of resistance

(http://www.marcbowles.com/courses/adv_dip/module5/chapter3/amc5_ch3_one.htm)

3.0.1 Meeting or Discussion

The first methods that can be used to establish commitment in the members of an organization to achieve the goals is determine the objectives by cooperating with all members of the organization. Conduct meeting or discussion with the employees and discuss with them about the company objectives The Objectives can be even more successful if the employees are involves in

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determines the objectives. This is because employees feel valued and trusted. When company ask for employees opinion, employees feel appreciated and they know company trust them.

3.0.2 Reasonable Objective

The second method that we can do to motivated employees to achieve objectives. Reasonable objectives can helps employees to achieve their target. This make the employees feel more motivated and engaged to take action. Pay for performance is one of the ways to build individual commitment. Pay for performance programs are variable compensation plans that pay employees on the basic of some performance measure. Specifically, individuals should perceive a strong relationship between their performance and their rewards they receive for motivation to be maximized. If rewards are allocated only on non performance factors such as seniority, job title or across the board pay raise then employees are likely to reduce their efforts.

3.0.3 Announcement Of Objectives

Announcement of objectives to members in the organization is also of the method used to establish commitment in the members of organizations to achieve objectives. Sharing company objectives allows employees feel valued and respected. Open book management is the strategy that ERL Company can use to inform employees about the company objectives. Open book management is growing as a means of motivating employees by sharing with them company information. Employees who know the bigger picture feel more involved and part of the company. Announce the objectives to member also make the employees feel more responsible to come up with ideas and suggestions of how to improve their works or resolve the problem.

3.0.4 Support From Upper Management

Another element to consider that contributes to success is upper level management support. This support needs to take not only the form of verbal support but also through participation in the same performance management process for evaluations. In addition consider the current culture of organization when it comes to performance appraisals and performance management. The atmosphere in the organizations must be able for the employees honestly discuss performance and consider how to make improvement in order to move forward. ERL can get upper level management support where they can create events to give awards to employees who have been
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nominated by the company for the extraordinary efforts on the job. With all of the organization members involves in this events can motivate the workers. Employees recognition programs consists of personal attention and expressing interest, approval and appreciation for a job well done.

4.0 Forming Action Plan

The third steps are to forming action plan. The action plan that ERL take to achieve goals is:

4.0.1 Training
Training is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Training is crucial for organization to achieve their goals. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if employees are trained well. Training helps the employees to get job security and job satisfaction. Training can helps ERL to achieve all the customer objective which is to increase customer service staff delivery services in knowledgeable, professional and timely manner, to increase customer service staff satisfaction and self actualization and to increase the number of customer service staff attendance .The more satisfied the employees is and the greater is his morale, the more he will contribute to organizational success and the lesser will be employees absenteeism and turnover well trained employees will be well acquainted with the job and will need less of supervision. Thus, there will be less wastage of time and efforts. Error can be happen if the employees are lack of knowledge and skill required for the task. The trained employee has advantages where changes of committing accidents in job and the employees also become more proficient. In addition, training also improves efficiency and productivity of employees. Well trained employees show both quantity and quality performance.

4.0.2 Company Leave Policy

Leave policy is to encourage and to motivate employees to come work. Rewards the employees who have 100% full attendance in three months is one of the ways to motivate and encourages

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employees to come work. This policy can helps to achieve ERL customer service objectives to increase the number of customer service attendance.

4.0.3 Staff Uniform

All employees are required to wear staff uniform. This new rules is to make the employees feel motivated and more professional in work place. This action plan is to achieve customer Service objective to delivery services in professional and to increase customer service staff satisfaction and self actualization. One of the purpose wearing uniform is because uniform is representation of a company which it is also can promote the company. Uniform can able to encourage employees in a company to cooperate and work hard together because they feel that they belong to the same group of people and not left out. This is also can helps to achieve customer services objectives to increase the number of customer service staff attendance because they feel motivate to work in team.

4.0.4 Time management

Time has become an important aspect of a company competitive advantage. Fast delivery of products and services creates customer value. Time management refers to techniques that enable people to get more done in less time with better results. Working long hours is often a sign of poor time management. To achieve customer service which is to delivery services in timely manner ERL can use time log. Time log system is a daily dairy that tracks customer service staff activities. Time log can identify areas that employees spend too much time and areas that they do not spend enough time.

5.0 Monitoring Progress

The forth step in effective planning is to monitor progress. Monitoring is important because it is to make sure the company achieve their objective. There are two ways to monitor the objectives progress:

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5.1

Determines Long term and Short term Objectives

Test

Conduct test to employees is one of the ways to monitor the employees progress. This is because test can help the company to know employees understanding towards company product. One of the ERL long term objectives is to increase customer service staff delivery services in knowledgeable, professional and timely manner by 80 percent in a year. To achieve this long term objectives, Company have to make sure employees are always up to date and know all the service that is provided in ERL.

5.2

Obtaining Performance Feedback from Participating Parties

Balance Scorecard

Balance scorecard is the best tool to monitor employees progress towards achieve the goals. Employees Scorecard is a measurement tool to evaluate employees performance. ERL has their own standards on what needs and to be achieved to align an employees goals to organizational goals. With Performance Scorecard, employees can know their strength and weaknesses. This feedback can helps employees to improve in on the areas they needs to improve on. Balance Scorecard can helps ERL to achieve their customer service objectives by monitoring and improving employees performances.

6.0 Maintaining Flexibility

Any business owner knows how important it is to stay flexible, especially in an economic downturn, and yet many organizations are plagued with a surprising lack of elasticity.
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Inflexibility is something that easily creeps into a business especially in industries that are static. But such rigidity can contribute to forced flexibility measures in the form of layoffs, pay cuts, rolling back of company perks, etc. After implementing such measures, it is hard to get employees to perform at a high level because of fear and insecurity about what the future may bring.(http://www.businessweek.com/smallbiz/tips/archives/2010/07/maintain_flexibility_in_your _organization.html) Four suggestions to help company flexible:

6.1

Always look for a way to be innovativePay attention to whats going on around you and continue to strive to think outside the box.In ERL we believe customers is the reason why we still can running until now, as our Vision to provided international standards of services every train station among KL Central to KLIA should been renovated. ERL also can provide free high speed internet connection broadband for all customers when they board in KLIA Transit either KLIA Express as well. All of this to make satisfaction for all customers who use ERL as their transportation

6.2

Listen to all ideas that circulate in your company.

Every month ERL must collected feedback and ideas from all staff in all department how to make ERL much better than tomorrow. Especially Customer Service Department ,all staff in this Department should give an idea due to they are front line for ERL and they bring image of ERL to all over the world.

6.3

Never become complacent.

Complacency is the easiest way to fall into the inflexibility trap. No matter what type of industry, ERL need to be ready to adapt to changes that will inevitably come. No industry stays stationary forever.

6.4

Investment in another sector

Besides rail connection between KL Central to KLIA, ERL also need to make investment, lets say if another country like Vietnam, Thailand, Myanmar planned to copy technology ERL for the rail connection for their country, ERL should bid the

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project due to they have technology, expert employees and experienced to controlling fast train in the city.

7.0

Conclusion

Planning is to be of real long-term value, it must be treated as an ongoing business process. It must be reflective of the owners mission and vision. It must evolve and change to reflect changing market and economic conditions. It must be proactive to competitive conditions. Effective Strategic Planning can institutionalize a culture of continuous improvement, effective decision making, and disciplined change. John F. Dix and H. Lee Buck Mathews (2002) The Strategic Plan is simply a tool to be thought of as a guide or map. It has a starting point, (todays conditions and environment). It has an ending point, where the company wants to be, (terms of success), in the future. And it has a middle or process. That is the hard work part. The middle part is coming to terms with all of the elements that may be either supportive of or in the way of getting from the start to the end. It is a process that answers the question of how is the best, most likely way to be successful as defined by the stakeholders and allowed by the customers and embraced by the employees. Think of Strategic Planning as a series of concentric circles. The vision, mission strategy and tactics are included in the circles moving from vision on the outside to tactics on the inner most circle. All are in alignment and consistent with each other. Now add two more circles. The first is the customer circle. If the company vision, mission, strategy and tactics are in alignment with that of the customer then this circle will also be aligned. To the extent it is misaligned there is conflict between the company and the companys customers. The third circle is represented by the competition. This circle, in the best situation, will be totally misaligned with the company and the customer meaning the company is uniquely positioned and valued by the customer. To the extent the competitive circle overlaps the company circle there is more head to head competition and more leverage for the customer to apply. ( http://www.bdiltd.net/Article_10.pdf)

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2853 words.

REFERENCES INDIVIDUALS
(William, 2000). John F. Dix and H. Lee Buck Mathews (2002)

Website
(http://www.marcbowles.com/courses/adv_dip/module5/chapter3/amc5_ch3_one.htm) Figure 1 .( http://www.bdi-ltd.net/Article_10.pdf) Planning Strategies

(http://www.kliaekspres.com/erlsb/default.aspx) KLIA Express Official Website .(http://www.businessweek.com/smallbiz/tips/archives/2010/07/maintain_flexibility_in_your_org anization.html) Flexibility in Organization

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