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However, errors and biases decision making such as overconfidence and sink costs might
cause corporate crisis and scandal (Robbins et al, 2009 p.232). Port Klang Free Zone project
(PKFZ) in Malaysia, has bring on a failure planning. Advisory firm Pricewaterhousecoopers
(2009 p.11) has revealed PKFZ project actual cost had rose up from RM1,957 billion, predict
to reach RM12,453 billion cumulative deficits in over time. Report further indicated that
failure planning included weak governance and project management, lands purchased exceed
market value, low project actual occupancy and so on. It is apparent that the management
team are holding unrealistically positive view, tend to obtain reward and to avoid immediate
costs. PKFZ project also failure to adjust adequately for subsequent information. Thereby,
decision-makers ought to not be heuristics thus simplify.
For this example, Malaysia former Prime Minister Tun Dr. Mahathir Mohamad has a great
effort on coordinated civil servants. He initiated civil service reform in his governance time,
suggested paradigm shift needed from the civil servants in their attitude and approach
towards their duties. Hereby in Mahathir theory, stated that "civil service should more
customers focused, responsive, results and performance oriented, accountable and
innovative, with the capacity and capability of providing quality services" (Ho and Chin, 2001
p.22). As a result, reform has increased the efficiency and effectiveness in the civil service
administration and management.
Besides, Malaysia Airlines (MAS) was another example to demonstrate the important of
coordinating. Reformation MAS adopt to join global airline alliance to cut short their deficit
flight lines and feed to alliance airline (Sia, 2007). Simultaneously, collaborate airlines would
also allocate the regional flights to MAS. Therefore, both have equal advantages, despite
MAS flights reduced but made more money.
However, Milne and Mauzy (1999 p.3) argued that the most important leadership traits are
not discernible by looking at the leader alone but by looking at interactive leader-follower
relations. It makes clear that leader should also be sensitive to what followers think. For
instance, Asia leading low-cost carrier, Air Asia, has an extraordinary leading style. The
management prefers casual and team-work approach, with less authority symbolises and
allows employees to share opinion (AFP, 2004). The crew members clean the plane without
regard for rank, and the top manager frequent get down operations with subordinates. CEO
Tony Fernandes has further explained this is a way to motivate his staff (Kang, 2003).
The forth Fayol's functions are controlling. Controlling means "restricting organizational
activities to same targeted element of performance remain within acceptable limits"
(Davidson et al, 2009 p.318). Controlling is an indicator and it helps to ensure the process of
implementing goal was in right direction, with comparing and evaluating its performance. In
reality, due to goal perform is an ongoing process, contingency are often surround and occur
during process, therefore, controlling provide the critical link back to planning. Well
controlling will make productivity efficiency and achieve effectiveness goal.
Air Asia as a low-cost airline has to constant looking of their cost and expenses. For
example, Air Asia decides buying single type aircraft, which is Airbus A320. CEO Tony
Fernandes (2007) make clear that Airbus A320 is cost economics than others aircraft,
superior reliability and fuel efficient. Due to this, keeping single aircraft type reduces
maintenance fees and staff training expenses. It is apparent that Air Asia has made
effective control through cost-efficient.
On the other hand, organisation without control managing ignoring of the target and what
future happens to take, lastly cause failure management. Port Klang Free Zone project
(PKFZ) as stated above, was also result in weak finance controlling. The report (2009 p.40)
has illustrated PKFZ purchased land with exceeds market value, and twice to accept higher
interest rates loan than originally contracted without reason, despite management team
discovered financial statement facing deficit.
In sum, overwhelming evidences make clear that Fayol's functions involve great influence to
contemporary organisational management practice. Planning, coordinating, leading and
controlling are incurred reciprocal condition, interdependent and interaction. Managers have
to engage in different activities and different management process well simultaneously.
Without Fayol's functions nowadays, Malaysia Airlines might be termination, dissolution or
take over by others. Also, entirely low-cost airlines organisations even many low-cost
industries cannot survive. PKFZ project is not without planning, but a weakness planning and
controlling. If plans and controls in satisfactory, it might be a flourish regional trade,
distribution and procurement centres. Hence, it could therefore be concluded with practice
well of Fayol's functions, although goal cannot assure be success but can minimise the
challenges and drawbacks among the approach.
Henri Fayol
Henri Fayol (born 1841 in Istanbul; died 1925 in Paris) was a French management theorist.
Henri Fayol was one of the most influential contributors to modern concepts of
management, having proposed that there are five primary functions of management:
1. Planning,
2. Organizing,
3. Commanding,
4. Coordinating, and
5. Controlling (Fayol, 1949, 1987).
Controlling is described in the sense that a manager must receive feedback on a process in
order to make necessary adjustments. Fayol's work has stood the test of time and has been
shown to be relevant and appropriate to contemporary management. Many of today's
management texts including Daft (2005) have reduced the five functions to four: (1)
planning, (2) organizing, (3) leading, and (4) controlling. Daft's text is organized around
Fayol's four functions.
Fayol believed management theories could be developed, then taught. His theories were
published in a monograph titled General and Industrial Management (1916). This is an
extraordinary little book that offers the first theory of general management and
statement of management principles.
Fayol suggested that it is important to have unity of command: a concept that suggests
there should be only one supervisor for each person in an organization. Like Socrates, Fayol
suggested that management is a universal human activity that applies equally well to the
family as it does to the corporation.
Fayol has been described as the father of modern operational management theory (George,
p. 146). Although his ideas have become a universal part of the modern management
concepts, some writers continue to associate him with Frederick Winslow Taylor. Taylor's
scientific management deals with the efficient organisation of production in the context of
a competitive enterprise that has to control its production costs. That was only one of the
many areas that Fayol addressed. Perhaps the connection with Taylor is more one of time,
than of perspective. According to Claude George (1968), a primary difference between
Fayol and Taylor was that Taylor viewed management processes from the bottom up, while
Fayol viewed it from the top down. George's comment may have originated from Fayol
himself. In the classic General and Industrial Management Fayol wrote that "Taylor's
approach differs from the one we have outlined in that he examines the firm from the
"bottom up." He starts with the most elemental units of activity the workers' actions
then studies the effects of their actions on productivity, devises new methods for making
them more efficient, and applies what he learns at lower levels to the hierarchy(Fayol,
1987, p. 43)." He suggests that Taylor has staff analysts and advisors working with
individuals at lower levels of the organization to identify the ways to improve efficiency.
According to Fayol, the approach results in a "negation of the principle of unity of command
(p. 44)." Fayol criticized Taylor's functional management in this way. The most marked
outward characteristics of functional management lies in the fact that each workman,
instead of coming in direct contact with the management at one point only, receives his daily
orders and help from eight different bosses(Fayol, 1949, p. 68.) Those eight, Fayol said,
were (1) route clerks, (2) instruction card men, (3) cost and time clerks, (4) gang bosses, (5)
speed bosses, (6) inspectors, (7) repair bosses, and the (8) shop disciplinarian (p. 68). This,
he said, was an unworkable situation, and that Taylor must have somehow reconciled the
dichotomy in some way not described in Taylor's works.
Fayol graduated from the mining academy of St. Etienne (Ecole des Mines de SaintEtienne) in 1860. The nineteen-year old engineer started at the mining company Compagnie
de Commentry-Fourchambeau-Decazeville, ultimately acting as its managing director from
1888 to 1918. Based largely on his own management experience, Fayol developed his concept
of administration. The 14 principles of management were discussed in detail in his book
published in 1917, Administration industrielle et gerale. It was first published in English as
General and Industrial Management in 1949 and is widely considered a foundational work in
classical management theory. In 1987 Irwin Gray edited and published a revised version of
Fayol's classic that was intended to free the reader from the difficulties of sifting through
language and thought that are limited to the time and place of composition (Fayol, 1987, p.
ix). Gray retained the 14 points shown below.
References
http://www.bola.biz/competence/fayol.html
http://www.analytictech.com/mb021/fayol.htm
http://en.wikipedia.org/wiki/Henri_Fayol
Management is the process of working with other and capital to achieve organizational goals.
Also management is defining as creative problem solving. This creative problem solving is
accomplished through the four functions of management: planning, organizing, leading and
controlling. The intended result is the use of an organization's resources in a way that finish
its mission and objectives. Every good manager, supervisor or leader does those tings both
effectively and efficiently.
At the present time in MEDDAC-Japan the organization in which I am employ, is working to
reorganize some the way they offers services to the military community. Very interesting
it is to see as the four functions of management in action.
In the business world today, the great executives not only adapt to changing conditions but
also apply fanatically, rigorously, consistently and with discipline the fundamental
management principles. These fundamentals include the four traditional functions of
management. They remain as relevant as ever, and they still provide the fundamentals that
are needed in star ups as much as in established corporations.
Management success is expanding through accomplishment of mission and objectives of the
organization. Managers and leaders fail when they do not achieve mission and objectives
established. Success and failure are attached in a straight line to the reasons for being in
business, mission and objectives. On the other hand, accomplishing mission and objectives is
not enough. Success requires equally effectiveness and efficiency. Managers, leaders and
supervisor who achieve their mission and objectives are believed to be effective. Efficiency
describes the connection between the amount of resources used (the input) and the amount
to which objectives were accomplished (the output). However, management is complete only
if the manager or team leader has become familiar with the specific situation in which he...
[continues]
Abstract
The four functions of management, planning, organizing, leading, and controlling, are very
essential in building strong organizations and even stronger more effective teams. Planning,
organizing, leading, and controlling are the functions of management. These function
activities must be preformed my all managers regardless of their industry level, title, or the
task they have at hand. These four management skill are used when ever a project or a task
is at hand. Even in the field we are working in, many of us may have been using the four
management functions and not noticed what they were, or we may have been a part of a
team that was lead by the functions of management and not noticed what was going on.
Functions of Management
The functions of management are defining the roles and responsibility of each and ever
team member. I will define the functions and explain how each function is used at my work
place. My role in the functions of management in the work place is a team member where I
have a Business Department Chair and my team member and I are the business instructors
where we take care of the student who are enrolled in Business Office Applications, Web
Design, Business Diploma Programs, and Technical Support and Networking.
Planning
Planning is defined as setting goals and deciding the course of actions we need to take to be
successful, putting together the rules and procedures on reaching our goal, putting together
the plans on how we must proceed with our process, and deciding where you want the work
place to be in the future. The planning stage is where all the other pats of management
begin from and it is important at all levels of management.
The way planning is used at the college where I work, is after each semester or during the
break in-between each semester we have a departmental meeting where we sit and discuss
what happened during the... [continues]
"Henri Fayol was the 1st to describe the Four Functions of Management when he was Chief
Executive Officer of a large mining company in the late 1800's. He noted that managers at
all levels operating in a for profit or not for profit organization must perform each of the
functions of management." (Miller, 2005, pg. 5-9) These four functions of management
consist of planning, organizing, leading and controlling. These four functions will be
addressed as well as how they relate to the company in which I am employed and the role in
which I play within that company.
Planning in management is the process used to identify and select appropriate goals and
courses of actions for an organization. "Planning is the thinking that precedes the doing."
(Maddux, 1998, p 4) During the process of planning, to ensure that it will be effective, a
determination needs to be made on the goals to be pursued, how to attain the goals and how
resources will be allocated. This first function of management determines how effective
and efficient the organization is and helps to determine the agency's strategy. The agency
in which I work has been effective for many years in establishing goals and allocating
resources. They are one of the frontrunners in the space industry and very often are able
to strategize more effectively than other agency counterparts. In my organization, my
managers require that we have weekly planning meetings that allow us to establish goals for
the week and determinations on how those weekly goals will be met. It is my responsibility,
along with the other logistics specialists to work to meet the weekly goals established and
make reports of the progress or the lack thereof.
In the organizing function of management, managers create the structure of working
relationships between company employees that best allows them to work together and
achieve goals. This allows for the setting up of departments according to... [continues]
UNIVERSALITY OF MANAGEMENT
he universality of management is an important concept to consider in modern management
thought. When describing management as universal, we refer to the widespread practice of
management in all types of organizations. As noted before, one cannot bring a group of
people together, regardless of the nature of the endeavor, and expect them to accomplish
objectives unless their efforts are coordinated. Among other things, plans must be outlined,
task identified, authority relationship specified, lines of communication established, and
leadership excercised. Management, therefore, is required before any organization can
expect to be effective.
Although management is universal, we should not assume that all managers are the same; if,
for no other reason, diffrences exist because no two individuals are alike. However, all
managers perform broad groups of duties that are smiliar. These groups of duties are the
functions of planning, organizing, actuating, and controlling. Although the responsibilities
associated with performing the functions vary among levels of authority, managers at all
material resouces. Since the management functions must be performed to some degree in
order to achieve dsdired goals, we can say that there is, indeed, a universality of
management.
The universal nature of management also implies that managerial skills are transferable
from one type of organization to another. If this is the case, a manager should expect to
exverience few problems in moving from one industry to another, from the military to
business, from business to government, from education to business, or from one department
to another within the same organization. There are certainly persons who have been
succesful in making such moves. Other, however, have failed. For example. Laurence J.Peter
cites numerous cases that show promotions in an organization often accompliesh little
beyond pointing out the incompetencies of those persons who have been promoted.
but a person who must plan, organize, actuate, and control. Again, this does not overlook the
need for technical information in the decision-making process. Technological, social,
political, and economic factors must be considered in most decisions. At the same time,
managers must recognize the importance of balancing the needs and goals various
organizational members. This, in turn, requires an ability to understand the overall nature of
an organization's operations.
A second factor to consider conserns to need for flexibility when adjusting to a new
organizational environment. All organizations have uniqe differences. Thus, for managers to
be successful in moving from one organization to another, they must be capable of adapting
to change. In addition, initiative, motivation to achieve, and the courage to accept and
overcome setbacks are important personal characteristics. When moving from large to
smaller organizations, these latter characteristics appear to be especially critical. Perhaps
this is due to the fact that smaller organizations do not have the technical specialists and
staff support groups found in their large counterparts. In any event, career movements
from small organizations to larger ones seem to present fewer problems.
Saturday
UNIVERSALITY OF MANAGEMENT
Although management is universal, we should not assume that all managers are the same; if,
for no other reason, diffrences exist because no two individuals are alike. However, all
managers perform broad groups of duties that are smiliar. These groups of duties are the
functions of planning, organizing, actuating, and controlling. Although the responsibilities
associated with performing the functions vary among levels of authority, managers at all
material resouces. Since the management functions must be performed to some degree in
order to achieve dsdired goals, we can say that there is, indeed, a universality of
management.
The universal nature of management also implies that managerial skills are transferable
from one type of organization to another. If this is the case, a manager should expect to
exverience few problems in moving from one industry to another, from the military to
business, from business to government, from education to business, or from one department
to another within the same organization. There are certainly persons who have been
successful in making such moves. Other, however, have failed. For example. Laurence
J.Peter cites numerous cases that show promotions in an organization often accompliesh
little beyond pointing out the incompetencies of those persons who have been promoted.
A second factor to consider conserns to need for flexibility when adjusting to a new
organizational environment. All organizations have uniqe differences. Thus, for managers to
be successful in moving from one organization to another, they must be capable of adapting
to change. In addition, initiative, motivation to achieve, and the courage to accept and
overcome setbacks are important personal characteristics. When moving from large to
smaller organizations, these latter characteristics appear to be especially critical. Perhaps
this is due to the fact that smaller organizations do not have the technical specialists and
staff support groups found in their large counterparts. In any event, career movements
from small organizations to larger ones seem to present fewer problems.
HUMAN SKILLS:
Human skills are skill that build cooperation with the team being led. They involve working
with attitudes and communication, individual and group interests in short, working with
people.
CONCEPTUAL SKILLS:
Conceptual Skills involve the ability to see the organization as a whole. A manager with
conceptual skills is able to understand how various functions of the organization complement
one another, how the organization relates to its environment, and how changes in one part of
the organization affect the rest of the organization.
As a manager grows, the need for conceptual skills increases.
Human skills are required at all levels.
MANAGEMENT SKILL: A contemporary View:
The major activities that the modern managers typically perform are of 3 basic types:
1.
2.
3.
Clarifying Roles
Monitoring Operations
Consulting
Supporting
Recognizing
Dveloping
Empowering
Envisioning Change
External Monitoring
the factors that have contibuted to the universal application of management in every level
of organisation and at every level of organisation.
Arguments for Universality
1.
Same functions. Quite often it is erroneously thought that management exists only
in a business and not in other enterprises. The fact is, however, that when acting in their
respective managerial capacities not only the company president but also the office
supervisor perform the fundamental functions of management. The difference lies in such
things as the breadth of the objectives, the magnitude of the decisions taken, the
organisation relationships affected, and so on. Managers perform essentially the same
functions irrespective of their level in the organisation, industry or country.
2.
Universal principles. Classical writers (Fayol, Urwick and others) believed that there
are certain principles in management which are universally applicablee. These are the
principles of departmentation, principles of division of labour, principle of span of control,
the scalar principle, principle of unity of command, etc. Such principles as one man one boss,
division of work to improve speed and efficiency, limiting the number of persons to be
supervised so that managers can concentrate on exceptional problems, the principles
governing motivation theory have certainly proved their worth up to a point, and these
principles have been translated into practice for a long time. These principles have found
universal expression of the nature and level of management in organisations.
3.
Fundamentals are same, the techniques employed and practices followed are
different. Managing occurs in parks, ranches, hospitals, farms, universities, cities, police,
agencies, churches, airports and community organisations, industries, and so on. The
fundamentals governing the management of a business, a church or a university are same:
the difference lies in the techniques employed and practices followed. All managers arc
accountable for performance of other people: they plan, make decisions, organise work,
motivate people and implement controls and so forth. In order to accomplish things, the
techniques employed might differ depending on situational factors like : culture, tradition,
attitude, etc. Same is the case with management practices. An automobile designed for use
in deserts or jungles will be markedly different from the one that is designed for city
traffic. The design principles governing both models are the same. The generic content of
management fundamentals is such that they can be applied universally : practices and
techniques employed may differ depending on the nature of industry, the organisational
level where these are applied, etc.
4.
Practical evidence. Managing is found in all types, functions, levels and sizes of
organisations. The fact that managers regularly move from public to private sector
organisations bears ample testimony to the fact that management concepts are universal
across organisational types. For example, D. D. Ensenhower went from a general in the U.S.
Army to President of Columbia University and to President of the United States. Again Sri
P.L. Tandon. the former Chairman of Hindustan Lever Ltd, has managed the PNB, STC and
the NCAER successfully during his tenure as the Chairman in these organisations. The basic
concepts of management propagated by American writers have found expression even in
communist countries. According to Drucker. the rapid development of Brazil, the rapid
development of non-communist countries, that is, of Hong Kong, Singapore, and Taiwan, the
rapid development of so poor and backward a peasant country as Iran are all traceable to
the impact of management.
Arguments Against Universality
1.
most universal in content at the upper echelons of organisations. The higher one moves in an
organisation the more he or she performs the generic functions of management planning,
organising, leading and controlling and the less he or she is involved in day-to-day technical
matters. The relationship between performance and functions entrusted becomes more
intense as one moves lower down the order. For example, the success of a drilling supervisor
of an oil rig depends to a large extent on his technical knowledge of drilling. On the other
hand, the president of an oil company does not need to have much of the technical
intricacies of drilling for oil or how to refine it. Before tossing the universality argument,
we must apply brakes and qualify the statement. Generic in content does not imply complete
substitutability.
2.
were written by practitioners in management and were based on personal experience and
limited observation only. They have only tried to pass on their ideas as universal truths. In
the absence of a rigorous scientific basis, no wonder, Simon dubbed the principles as
proverbs, comparable to folklore and folk-wisdom. Moreover, these principles are vague and
too general and , as a result, are very difficult to apply to a specific organisation. They
often overlap and are sometimes incompatible with one another. The terminology universal
principles, universal truths is quite unfortunate.
4.
Management is a product of the culture. Managers have to operate within the broad
Brazil are the same. and they are applicable and adaptable in various cultures. Otherwise, it
would not have been possible for Indian Managers doing successful business in Great Britain.
Chinese management thinkers teaching in America, and Japanese managers working
successfully in Brazil and Hong kong. The universality of management thesis is well
supported by several research studies by Hair, Porter, Negandhi and Richman etc.
According to these researchers, cultural and situational factors may influence the way in
which a manager discharges his functions but the fundamentals of management remain
unchanged..
The principles and concepts of management have universal application. It means that
managerial knowledge may be transferred from one country to another and from one
organization to another within the same country. The concept of universality of management
is, therefore, subject to the following two connotations.
(1) Management principles can be successfully applied to different kinds of enterprises such
as business enterprises, clubs, hospitals and so on.
(2) Management principles are applicable to different economic systems of the world. They
have world wide utility.
Although objectives differ, all organizations require certain common principles, concepts
and skills of management for allocating scarce resources such as time, human resources,
capital and so on. Managers shift from one company to another and from one industry to
another. Such shifts indicate that there are general skills and principles of management at
work.
3. Management as a Process:
1. Differences in Philosophies:
Philosophy means an attitude towards various activities. Differences in philosophies of
various enterprises may not allow a person to be an effective manager in all types of
enterprises. Differences in philosophy of various organizations require different kinds of
managerial techniques. This philosophy will exert different kinds of influence on
productivity.
2. Differences in Objectives:
The objective of an organization determines the type of management required. Because of
difference in objectives, the competence, the skills and the experience in management can
not as such be transferred and applied from one organization to another. It therefore,
implies that a person cannot demonstrate equal effectiveness in different types of
organizations.
3. Differences in Culture:
Culture means attitudes, beliefs and values of society. Identifiable cultural differences
bring variations in managerial behaviour patterns. Management philosophy is culture-bound
and hence it is not universally applicable. If a country has a strong traditional, religious and
cultural bias towards non-scientific behaviour, it will be difficult to introduce modem
methods of management