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MGT4005EF Business

Organization and
Management

Orientation

Contact Hours:
63 hours (60 teaching hours plus a 3-hour exam)

Medium:
English supplemented with Cantonese as appropriate (

Teaching notes and assessments are in English.)

Aim

To introduce the basic principles of management,


business structures, and the operation of various

functional units within organizations.

Learning Outcomes
Upon completion of the course, students should be able to:
a.

Explain how an organization is structured, governed and managed by and on behalf of its stakeholders;

b.

Identify and describe the key environmental influences and constraints on how the business operates;

c.

Demonstrate knowledge of the characteristics of effective control systems in organizations;

d.

Explain the basic concepts of marketing and marketing mix;

e.

Identify and explain how major business functions are orchestrated to achieve business goals effectively
and efficiently in domestic and international operations;

f.

Explain and compare the key elements of production and operations management in a manufacturing
business versus service organization;

g.

Explain the role of financial management in organizations;

h.

Recognize the principles of authority and leadership and how teams and individuals behave and are
managed, disciplined and motivated in pursuit of wider departmental and organizational aims and
objectives; and

i.

Explain the role of the human resource management function in an organization.

Assessment
Weighting

Continuous Assessment
- Written assignment
- Test
- Group project
Examination (3 hours)

30%
10%
10%
10%
70%

Total:
100%
Students must pass BOTH the continuous assessment and the
examination in order to obtain a passing grade in this course. The
passing mark is 50.

Attendance

Attendance requirement: at least 80%

Attendance is calculated as follows:


a)

Lateness or early departure not more than 15 minutes will be counted


as absence for 15 minutes.

b)

4 times of 15-minute absence will be treated as 1-hour absence.

c)

Lateness or early departure more than 15 minutes will be taken as


absence from relevant class

(See Student Handbook for more details)


6

Basic Class Rules

The Instructor

Background

Roles at OUHK: Programme Leader / Lecturer

Academic qualifications
Doctor of Hotel and Tourism Mgt (candidate)
Master of Science in International Hospitality Mgt

Contact info
Office: Staff room on the 10/F

Tel: 3120-9866
E-mail: ychen@ouhk.edu.hk

Reflection

Briefly introduce yourself

Short reflection on your learning experience in the


Semester A, including:

Overall feelings

Any difficulties that you encountered

Any new/improvement plans for the new semester

anything you would like share!

Effective organizational management

The various levels of management and the


function and inter-relationship of each

Supervision

Organizational Structure and Design

Purpose of Organizing

Organizational design Work


Specialization

Departmentalization by Type

Organizational Structure

Organizational Structure

Centralization vs Decentralization

Common Organizational Design

Strengths and Weaknesses of


Traditional Organization Design

Organizational Design Challenges

Common Quality Management


Techniques Cost of Quality
1. Prevention costs
2. Appraisal costs

3. Internal failure costs


4. External failure costs
5. Opportunity costs

What is quality management all about?


Try to manage all aspects of the
organization in order to excel in all
dimensions that are important to
customers
Two aspects of quality:

features: more features that meet customer needs


higher quality

freedom from trouble: fewer defects = higher


quality

The Quality Gurus Edward Deming

Quality is
uniformity and
dependability
Focus on SPC and
statistical tools
14 Points for
management
PDCA method
1900-1993

1986

The Quality Gurus Joseph Juran


Quality is fitness
for use
Pareto Principle
Cost of Quality
General
management
approach as well as
statistics
1904 - 2008
1951

History: how did we get here


Deming and Juran outlined the principles of Quality
Management.
Tai-ichi Ohno applies them in Toyota Motors Corp.

Japan has its National Quality Award (1951).


U.S. and European firms begin to implement Quality
Management programs (1980s).
U.S. establishes the Malcolm Baldridge National
Quality Award (1987).
Today, quality is an imperative for any business.

What does Total Quality Management


encompass?
TQM is a management philosophy:
continuous improvement
leadership development
partnership development

Cultural
Alignment

Customer

Technical
Tools
(Process Analysis,
SPC, QFD)

Developing quality specifications

Input

Design

Design quality

Process

Output

Dimensions of quality
Conformance quality

Six Sigma Quality


6

A philosophy and set of methods companies use


to eliminate defects in their products and
processes

Seeks to reduce variation in the processes that


lead to product defects

The name six sigma refers to the variation


that exists within plus or minus six standard
deviations of the process outputs

Six Sigma Roadmap (DMAIC)


Next Project

Define
Customers, Value, Problem Statement
Scope, Timeline, Team

Celebrate
Project $

Control

Primary/Secondary & OpEx Metrics


Current Value Stream Map
Voice Of Customer (QFD)

Document process (WIs, Std Work)


Mistake proof, TT sheet, CI List
Analyze change in metrics
Value Stream Review
Prepare final report

Validate
Project $

Measure
Assess specification / Demand
Measurement Capability (Gage R&R)
Correct the measurement system
Process map, Spaghetti, Time obs.
Measure OVs & IVs / Queues

Validate
Project $

Validate
Project $

Improve
Optimize KPOVs & test the KPIVs
Redesign process, set pacemaker
5S, Cell design, MRS
Visual controls
Value Stream Plan

Analyze (and fix the obvious)


Validate
Project $

Root Cause (Pareto, C&E, brainstorm)


Find all KPOVs & KPIVs
FMEA, DOE, critical Xs, VA/NVA
Graphical Analysis, ANOVA
Future Value Stream Map

Continuous improvement philosophy


1. Kaizen: Japanese term for continuous improvement.
A step-by-step improvement of business processes.
2. PDCA: Plan-do-check-act as defined by Deming.
Plan

Do

Act

Check

3. Benchmarking : what do top performers do?

Tools used for continuous improvement

1. Process flowchart

Tools used for continuous improvement

2. Run Chart

Performance

Time

Tools used for continuous improvement


3. Control Charts

Performance Metric

Time

Tools used for continuous improvement

4. Cause and effect diagram (fishbone)

Machine

Man

Environmen
t

Method

Material

The current process

Custome
rA

Custome
rB

Operator

Receiving
Party

How can we reduce waiting


time?

Fishbone diagram analysis


Absent receiving
party

Working system of
operators
Absent
Lunchtime

Out of office

Not at desk
Not giving
receiving partys
coordinates

Absent

Lengthy talk
Does not know
organization
well

Complaining
Leaving a
message

Customer

Too many phone


calls

Operator

Does not
understand
customer
Takes too much time
to explain

Makes
custom
er wait

Reasons why customers have to wait


(12-day analysis with check sheet)
Daily
average

Total
number

One operator (partner out of office)

14.3

172

Receiving party not present

6.1

73

No one present in the section receiving call

5.1

61

Section and name of the party not given

1.6

19

Inquiry about branch office locations

1.3

16

Other reasons

0.8

10

29.2

351

Ideas for improvement

1. Taking lunches on three different shifts

2. Ask all employees to leave messages when leaving desks


3. Compiling a directory where next to personnels name
appears her/his title