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Assignment of Fundamentals of Management MGT 162/160

Group: EAMP3C Lecturer: Pn. Farah Murni Merican

Question No:Examination April 2011(Part C & D) Answer all questions.

Group Members: Siti Sabarina bt Ithnin (2010325989) Bibi Rufeeza Zaira bt Sayed

Part C Question 1:

Briefly explain the three management levels found in an organization


FirstLine Managers/Lower Level Manager

They are responsible for putting into operation the plans of higher and middle management. The lowest level in the organization is that which individuals and responsible for the work of others. First-line or first level managers direct operating employees only; they do not supervise other managers. Examples as the foreman or production supervisor in a manufacturing plant, the technical supervisor in a research department, and the chief-clerk in a large office. 2. Middle Managers

Middle managers can include more than one level in a organization. Middle managers direct the activities of lower-level managers and sometimes also those of operating employees. Middle manager's principle responsibilities are to direct the activities that implement their organization's policy and to balance they demands of their superiors with the capacity of their subordinates. Examples are the marketing manager, the production manager and the human resource managers. 3. Top Managers

A comparative small group of executives, the top management is responsible of the overall management of the organization. They establish operating policy and guide the organization's interaction with its environment. Typical titles or top managers are Chief Executive Officer, President, and Senior VicePresident. Actual titles vary from one organization to others.

Question 2: Explain any three types of control with appropriate examples 1. Pre-Action Control (Feed-Forward)

Controlling is done at the input level of production. It is initiated before the start of production or service activity. For example, the specifications of output / input factors such as finance (capital), human resource and material resources. The purpose is to anticipate potential problems and prevent them from occurring. This type of control is sometimes called preventive control because its objective is to prevent problems at the input levels before going through the transformation process.


Steering Control (Concurrent Control)

Focus on what occurs during the work processor the transformation process. The primary goal in steering control is to spot problems as they develop and take corrective action before final result are achieved. An example if the zero inflation campaign by the Malaysian Government to prevent inflation. 3. Screening control (Yes of No Control)

Specify check points that must be successfully passed before and activity proceeds further. Before proceeding to the next sequence, an activity, product or service must be approved or meet specific conditions. An example is a bank procedure in the approval of a large cheque amount. The approval of the cheques has to go through several stages, because it involves a large amount of money.

Question 3: Identify and explain three conditions in decision-making. Give examples. 1. Conditions Under Certainty

This condition is present if the decision maker knows exactly what will happen. Thus, he will be able to predict the outcome precisely. It because the individual is fully informed in terms of the nature of the problems, possible alternatives and results of alternatives. Example if RM 1000/- is put in a bank in a fixed deposit for a year at 5% interest. Then interest earned will be RM50 on the money. When a decision is made under certainty a manager knows exactly what the outcome will be because he knows his resources time available and other things. 2. Conditions Under Risk

Conditions under risk refer to the future conditions that are not always known in advance. In reality, most of the management decisions are made under risk conditions that is, some information is available but it is not enough to answer all questions about the outcomes. Conditions under risks occur in the situation in which an individual can define the nature of the problem, possible alternatives and the probability of each alternative leading to the desired results. 3. Conditions Under Uncertainty

This is the situation in which the individual cannot even assign subjective probabilities to each of the possible states of nature and assumption is made that the individual as no information or intuitive judgment to use as a basis for assigning the probabilities to each state of nature.

Question 4: Explain the two-factor theory introduced by Frederick Hertzberg Hygiene Factor (Dissatisfier) Hygiene factor is also known as dissatisfier factor. It is associated with the work setting of an individual, often called job context. Hygiene factor causes feelings of job dissatisfaction. The determinants of job dissatisfaction were found to be company policy administrative policies, supervision, salary, interpersonal
relations and working conditions this all are called as job context (the environment). Satisfier Factor (Motivating) Satisfier factor is also known as motivating factor. Where hygiene factor associated with job context, satisfier factor, on the other hand, is related to the job content of individuals. Satisfier factor cause feelings of satisfaction. Five factors stood out as strong determiners of job satisfaction are achievement, recognition, work itself, responsibility and advancement those are called job context (What you experienced)

Question 5: Briefly explain the group decision making techniques. There are various techniques that managers can utilize in making quality group decision making. They are as such: 1. Brainstorming the technique used to enhance creativity that encourages group members to generate as many novel ideas as possible on given topic without evaluating them. 2. Nominal group technique is a structured process designed to stimulate creative group decision making where agreement is lacking or where the members have incomplete knowledge concerning the nature of the problem. 3. 4. Delphi Technique is uses experts to make predictions and forecasts about Devil's Advocacy Approach is an individual or subgroup is appointed to future without meeting face to face. critique a propose course of action and identify problems to consider before the decisions is final. 5. Dialectical inquiry is approaches a decision from two opposite points and structure are debate between conflicting views.

Question 6: Briefly explain three problems in implementing Total Quality Management (TQM) 1. Following what other people are doing. There are no goals of their own.

Other companies problems may not similar to another company. So they just follow what the other company goals but they dont realize they are not the same business. 2. No viable communication system is set up between top management and

lower management informing individuals on goals of quality, the process etc. 3. Failure to lead by top executives leadership through exhortations or

inspiration speeches generally does not generate changes or results. Therefore, leaders must adopt a leadership style that may improve the planning, incentives and training of employees.

Part D

Question 1 Briefly explain any five principles that Islamic leaders should follow to be an effective leader. To be effective, Islamic leaders follow the principles. They are: Syura (Mutual Consultation) Syura emphasizes on the importance of managing through teamwork. This is the principle. The Al-Quran has made clear that Muslim leaders are obligated to consult those with knowledge and those who would provide good advice. This practice is seen in our Prophet Muhammads s.a.w leadership. The practice of Syura will enable members of an organization to participate in the decision making process. Syura also monitors the leaders conduct of behavior so that will not deviate from the collective goals of his followers. Syura allows group members to express opinion and grievances freely without the feeling of embarrassment. Justice This is the second hallmark of Islamic leadership. The leader should deal with people justly and fairly regardless of race, color, national origin or religion. The Al-Quran commands Muslim to be fair even when dealing with people who oppose them. Masruiah This is the concept of legality whereby the management has to ensure that any action taken must be within the legal boundary of the common /man-made laws and the Syariah laws.


This principles looks at the importance of selecting the right management personnel. It should be based on the main elements i.e. quwwah (strength) and amanah (trustworthty). The selection of new personnel should not be based on self-interest or favouratism. It should be based on the person ability, expertise, experience and other suitable criteria that fits the job. Reward Managers must be fair in any action and reward people accordingly. Employees who performed their tasks or responsibilities well should be given reward. However, the Islamic Management views reward as the compensation / benefit earned not only today but till one dies. This is known as Pembalasan Dunia dan Akhirat.

Question 2 Managers communicate in a variety of ways. Discuss with example the primary categories of interpersonal communication. The primary categories of interpersonal communication are: Verbal/Oral Communication A verbal communication is a way of transmitting message by means of spoken words, writing letters, memo, newsletter, bulletin boards etc. In organizational communication, verbal communication is the normal and formal form communicating. It consists of all forms of spoken communication and is the most preferred type of communication used by managers. Oral communication provides means for managers and employees to communicate face to face, provide opinion, raise questions and voice grievances or complaints. Communication through a face-to-face meeting does not only speed up the exchanges of ideas and information, but it is also fast in getting direct feedback. Written Communication This include example like letters, memos, policy manuals, reports, forms and other documents used to share information in the organizations. Managers send information either by letters, memos, newsletters, phone calls, faxes or e-mails. Some managers, send letters through the mails, fax a copy and call the receiver to make sure the message is received. The main advantage for this type of communication is it provides records and evidences. If the message needs to be referred to in the future, the information that is well-kept can be easily retrieved.

Non-verbal communication

It is the exchange of information or transmission of messages by means of gestures and to express feelings and emotions of individuals. Examples of the type of non verbal communication are facial expression and movement (kinesic behavior), voice tone (paralanguage), posture (physical characteristics), hand gesture that is includes movement of the hand, Body placement, clothing and appearance also environment. Question 3 List and explain French and Ravens sources of power. Provide an example of each power. Power is defined as the ability to influence the behavior of others. It can also be defined as the ability to marshal human, informational or material resources to get something done. Power is important for leaders to led. According to French and Raven, there are five bases or sources of powers to managers/leaders. They are: Legitimate power that is influence based on leaders formal position in the organizations hierarchy. It is also access to resources, information, and key decision makers that gives some leaders legitimate power. The benefits of legitimate power are get a good job for a talented employee, obtain approval for expenditures beyond budget, provide easy access to top people in the company and ensure knowing early about important decisions and policy. Example of it is Managing Director can use his position to ask the employees to follow his instructions. Reward power that power of leaders ability to satisfy followers needs, employees act on a supervisors requests because they believe that their behaviors will be rewarded. Example like when the employee done their work effectively they will get their reward.

Coercive power is ability of leader to obtain compliance through fear or punishment. The punishment may take the form of official reprimands, less desirable work assignments, pay cuts and demotions also suspensions and termination. It is usually less effective than reward power because for the same reasons that punishment has limited effect as a motivator and some employees respond to coercion by falsifying performance reports, stealing company property and exhibiting similar negative behavior. Example of it is when employees do not have a good discipline they will be a punishment for him from his leader. Referent power is power that based on followers personal identification with the leader. This type of power is like followers are apt to like, admire and want to emulate the leader and usually is possessed by leaders who have admirable personal characteristics, charisma and excellent reputations. Example like Anwar Ibrahim that had his own a charisma to make a lot people follow him as a leader. Expert power is the power that is based on a leaders specialized knowledge when subordinates act on the leaders recommendations because of the leaders knowledge. Example like when a doctor that had knowledge about healthy lifestyle asking people to follow his advice people will follow it.

Question 4 Discuss the life cycle theory which is developed by Hersey and Blanchard.

Life cycle theory or situational Approach is model that developed by Paul Hersey and Kenneth Blanchard. According to this model, a leader should change his styles of leadership according to the level of maturity of his employee and the demands of the situation. The model further emphasized that there is no single best way to lead. Hersey and Blanchard focus on the situational contingency of maturity, or readiness of followers, in particular.

The theory states that instead of using just one style, successful leaders should change their leadership styles based on the maturity of the people they're leading and the details of the task. Using this theory, leaders should be able to place more or less emphasis on the task, and more or less emphasis on the relationships with the people they're leading, depending on what's needed to get the job done successfully.
This style varies in three ways: The amount of direction directive behavior (Task behavior) The amount of support supportive behavior (Relationship behavior) The amount of involvement in decision making by the follower (maturity)

Maturity Levels According to Hersey and Blanchard, knowing when to use each style is largely dependent on the maturity of the person or group you're leading. They break maturity down into four different levels:

M1 People at this level of maturity are at the bottom level of the

scale. They lack the knowledge, skills, or confidence to work on their own, and they often need to be pushed to take the task on.

M2 At this level, followers might be willing to work on the task, but

they still don't have the skills to do it successfully.

M3 Here, followers are ready and willing to help with the task. They

have more skills than the M2 group, but they're still not confident in their abilities.

M4 These followers are able to work on their own. They have high

confidence and strong skills, and they're committed to the task. The Hersey-Blanchard model maps each leadership style to each maturity level, as shown below. Maturity Level M1: Low maturity skills M3: Medium maturity, higher S3: Participating/supporting skills but lacking confidence M4: High maturity S4: Delegating Most Appropriate

Leadership Style S1: Telling/directing M2: Medium maturity, limited S2: Selling/coaching

To use this model, reflect on the maturity of individuals within your team. The table above then shows which leadership style Hersey and Blanchard consider the most effective for people with that level of maturity. Leadership Style Examples You're about to leave for an extended holiday, and your tasks will be handled by an experienced colleague. He's very familiar with your responsibilities, and he's excited to do the job. Instead of trusting his knowledge and skills to do the work, you spend hours creating a detailed list of tasks for which he'll be responsible, and instructions on how to do them.

The result? Your work gets done, but you've damaged the relationship with your colleague by your lack of trust. He was an M4 in maturity, and yet you used an S1 leadership style instead of an S4, which would have been more appropriate

Thank You Very Much Pn. Farah.