Chapter 8

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Chapter 8

  1. 1.
  2. 2. CHAPTER 8 EFFECTIVE MANAGEMENT AND ORGANIZATION STRUCTURE
  3. 3. LEARNING OBJECTIVES <ul><ul><ul><li>Understand the Tauhid relationship with management </li></ul></ul></ul><ul><ul><ul><li>Understand the principle of management from the Islamic perspective </li></ul></ul></ul><ul><ul><ul><li>Explain the levels of management and identify the key functions of managers </li></ul></ul></ul><ul><ul><ul><li>Explain the various type or organizational structure </li></ul></ul></ul><ul><ul><ul><li>Explain how accountability could be achieved through organizational structure </li></ul></ul></ul><ul><ul><ul><li>Describe the distributing authority among the job positions </li></ul></ul></ul><ul><ul><ul><li>Explain how to achieve good communication in the organization </li></ul></ul></ul>
  4. 4. INTRODUCTION <ul><li>MANAGEMENT IN ISLAM </li></ul><ul><li>Management in Islam is referring to how the social, economic and political side of a man’s life being manages with the Islamic values. </li></ul><ul><li>The management in Islam starts from the Muslim’s believes of the five pillars of Islam which are faith, prayer, alms, fasting, and pilgrimage which will give a direct impact on the behavior of a truthful Muslim’s. </li></ul>
  5. 5. INTRODUCTION <ul><li>DEFINITION OF MANAGEMENT </li></ul><ul><li>covers the process of getting activities completed efficiently and effectively with and through other people through p lanning, organizing, staffing, directing, coordinating, reporting and budgeting (Gulick & Urwick 1937). </li></ul>
  6. 6. MANAGING BUSINESS CONCEPT IN ISLAM <ul><li>covers a wide area of muamalah such as buying and selling, employment, paying and receiving wages. According to Surah An-nisa’ (4:29). </li></ul><ul><li>“ O believers, don’t you take wealth among you in a bad way, except on the basis of business of dealings that was agreed among you” </li></ul>
  7. 7. MANAGING BUSINESS CONCEPT IN ISLAM <ul><li>According to Dr Hassan Hj Mohd Ali, management objective can be accomplish through relationship of three main elements which are: </li></ul><ul><ul><li>Philosophy and value which content policy, principle, motive and ethics. </li></ul></ul><ul><ul><li>Management and workers which have a combination of quality, skills and character. </li></ul></ul><ul><ul><li>System and practice through procedures, structure and working environment and customs. </li></ul></ul>
  8. 8. ISLAMIC PRINCIPLE IN MANAGING ORGANIZATION <ul><li>Division of work </li></ul><ul><li>Authority </li></ul><ul><li>Discipline. </li></ul><ul><li>Unity of command . </li></ul><ul><li>Unity of direction. </li></ul><ul><li>Subordination of individual interests to the general interest. </li></ul>
  9. 9. ISLAMIC PRINCIPLE IN MANAGING ORGANIZATION <ul><li>Remuneration </li></ul><ul><li>Centralisation </li></ul><ul><li>Scalar chain </li></ul><ul><li>Order </li></ul><ul><li>EquityStability of tenure of personnel </li></ul><ul><li>Initiative </li></ul><ul><li>Esprit de corps </li></ul>
  10. 10. LEVEL OF MANAGEMENT <ul><li>Top /High Level Management </li></ul><ul><ul><li>Set new plans to expend </li></ul></ul><ul><ul><li>Communicate those plans to all managers </li></ul></ul><ul><ul><li>Example: CEO, GM, President </li></ul></ul><ul><li>Middle Management </li></ul><ul><ul><li>Determine how many new employee to hire </li></ul></ul><ul><ul><li>Determine how to obtain funds to finance the expansion </li></ul></ul><ul><li>Supervisory Management </li></ul><ul><ul><li>Directly deals with employee </li></ul></ul><ul><ul><li>Example: branch manager </li></ul></ul>
  11. 11. FUNCTION OF MANAGER Functions Planning Organizing Leading Controlling
  12. 12. MANAGERIAL SKILLS Technical Conceptual Interpersonal Decision Making
  13. 13. ORGANIZATIONAL STRUCTURE <ul><li>Span of Control </li></ul><ul><li>The number of employees managed by each manager, which is determined by top management. </li></ul><ul><li>For example, a narrow span of control may consist of a president supervising a vice president, who supervises a sales manager, who in turn supervises salespeople. </li></ul>
  14. 14. ORGANIZATIONAL STRUCTURE <ul><li>Organizational Height </li></ul><ul><li>An organization can also be described by its height – that is the number of management layers from the bottom to the top. </li></ul><ul><li>A tall organization would have many layers, while a short (or flat) organization would have very few layers of management. </li></ul><ul><li>For example, many companies that use a wide span of control will also have a short organizational height, while companies with a tall organizational height have a narrow span of control </li></ul>
  15. 15. DISTRIBUTING AUTHORITY AMONG THE JOB POSITION Centralized A structure where Most authority is held by the high-level managers. <ul><li>Decentralized </li></ul><ul><li>A structure where authority </li></ul><ul><li>is spread among several </li></ul><ul><li>divisions or managers. </li></ul><ul><li>Each unit can make </li></ul><ul><li>quick decisions in response </li></ul><ul><li>to local market conditions. </li></ul>
  16. 16. STRUCTURE THAT ALLOW MORE EMPLOYEE INPUT <ul><li>Matrix Organization </li></ul><ul><li>An organizational structure that enables various parts of the firm to interact to focus on specific projects. </li></ul><ul><li>Intrapreneurship </li></ul><ul><li>The assignment of particular employees of a firm to generate ideas, as if they were entrepreneurs running their own firms. </li></ul>
  17. 17. DEPARTMENTALIZATION <ul><li>Departmentalize </li></ul><ul><li>Assign tasks and responsibilities to different departments. </li></ul><ul><li>Departmentalize by function </li></ul><ul><li>Allocate their tasks and responsibilities according to employee functions </li></ul><ul><li>Departmentalize by product </li></ul><ul><li>Tasks and responsibilities are separated according to the type of product produced. </li></ul>
  18. 18. DEPARTMENTALIZATION <ul><li>Departmentalize by location . </li></ul><ul><li>Establishing regional offices to cover specific geographic regions. </li></ul><ul><li>Departmentalize by customer </li></ul><ul><li>Specialize on individuals, and others on large corporate customers. </li></ul>
  19. 19. <ul><ul><li>Tutorial Questions </li></ul></ul><ul><ul><ul><li>How do you think the general management functions vary at each level of management within the firm? </li></ul></ul></ul><ul><ul><ul><li>Assume that you are thinking of becoming a manager. Define management. What are the most important skills you should have to become an effective manager? </li></ul></ul></ul><ul><ul><ul><li>Discuss how global competition is changing our thinking about managing firms and subsidiaries in foreign countries. </li></ul></ul></ul><ul><ul><ul><li>Assume that you are a high-level manager and are revising the organizational structure of your firm. Identify and explain the main methods for departmentalizing the tasks and responsibilities to the different departments. </li></ul></ul></ul><ul><ul><ul><li>For what kinds of businesses might a narrow span of control work best? When might a wide span of control work best? </li></ul></ul></ul>

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