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Tma1 bmg501-031100165

  1. 1. BMG 501Management in OrganizationsTMA 1: Semester 1 - January 2011Maizatul Nazwa SahimanStudent Id No: 031100165
  2. 2. Table of ContentsQuestion 1Roles and Responsibilities of Groups and Individuals.......................................................................................................3-4Question 2Roles and Responsibilities modified/emphasized in 21st CenturyOrganizations.......................................................................................................4-6Question 3Decision Making and the Organizations.......................................................................................................6-8Question 4How clear decision roles enhance Organizational Performance; Whohas the D?......................................................................................................8-10References.........................................................................................................11BMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 2
  3. 3. Question 1:What are the roles and responsibilities of group and individuals?Group is a collectivity of two or more individual, communicating and relies on one to anotherwith same goals and momentum. Formal Groups formed by the organization with high standardof tasks and fixed assignments that will ensure the organization in achieving targets andobjectives. Informal Groups is the social identity type and natural formations, which tend tobuild friendships and sharing the same interests. The principle of roles and responsibilitiesapplies to all employees in organizations and also to their routine life as well. Benne and Sheats(1948) defined three broad types of roles people play in small groups: task roles, building andmaintenance roles, and self-centered roles. 1. Task Roles : Focus on achieving group’s objective  Initiator/Contributor: Proposed new plans.  Information-seeker: Clarification and verification.  Opinion-seeker: Required information from the group about its values.  Information-giver: Provide relevant information.  Opinion-giver: Show opinions and beliefs.  Elaborator: Discuss clearly and brief ideas together with some examples.  Coordinator: Statement or ideas need to be connected and reliable.  Orienteer: Review groups discussion and summarize.  Evaluator-critic: Monitor groups performance against higher standard.  Energizer/Be Positive: Motivate group to better a level of activity.  Procedural-technician: In-charge of the responsibility.  Recorder: Keeps the minutes and proper notes related to the meeting. 2. Group-Building : Focus on building interpersonal relationships, maintaining harmony  Motivator : Recognized and encouraged good ideas  Harmonizer: Avoids conflict and tension.  Compromiser/Negotiator: Solutions that is satisfied by everyone.  Gatekeeper/expediter: Good and effective communication channels.  Standard Setter: Suggest criteria or target for the group to achieve.  Group observer: Proper and accurate records to evaluate group progress.  Follower: Agree with suggestions given. 3. Self-centered Roles: Focus is to prevent group from reaching goals; to disrupt  Aggressor: Insulting comments and negative feedback to group members.  Blocker: Do not fully involved and not being cooperative.  Recognition seeker: Prefers to be centre of attention.  Self-confessor: Interested only on topics that benefited to self.  Dominator: Monopolize and interrupt group speaking time.  Help seeker: Unhelpful and not sharing tasks.  Loafer : Refused to do any work  Special interest pleader: Share own viewpoint and needs.The most important units of any organization are individual. The Belbin model is highly effectiveconcept introduced by Dr Meredith Belbin. The 9 roles cover the types of individual behavior atwork in a team and categorized into Action, People and Thought Oriented Roles.BMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 3
  4. 4. 1. Doing and Acting 1. Implementer – Expected and well structured. Use concepts and ideas into working procedures with systematically and efficient strategy. 2. Shaper - Needs energy and action as to encourage to move forward and to be more focus on objective. 3. Completer/Finisher - Ensure task ends efficiently and achieved results well to highest standards of quality control. 2. Thinking/Problem Solving 4. Plant - Creative and effective in solving crucial issues in unconditional ways. Poor communicator and do not focus on details. 5. Monitor Evaluator – Have logical eyes, think deeply, and make accurate and careful judgments. Lack of energy or not motivators. 6. Specialist – Knowledgeable and skillful in key area which managed to find solution for many problems but disinterested in other areas. 3. People/Feelings 7. Coordinator - Respected leader and able to assist team to focus on objective, delegate work appropriately and controlling. 8. Team Worker - Assist team using versatility to do work. Caring, good listener but facing problem in settling difficult issues. 9. Resource/Investigator - Furnish inside knowledge and ensure team’s ideas would carry to outside world. Good network, optimistic and may lose energy after the initial flush.Communication, interaction, behavior and accomplishes certain task is normally influence bythe shared values and beliefs among people in any organization. Basically these distinguish oneorganization with other organization.“Do you want a collection of brilliant minds or a brilliant collection of minds?” - R. MeredithBelbin (1926), British Psychologist.Question 2:How are roles and responsibilities modified/emphasized in 21st Century Organizations?"The 21st Century Organization" [August, 2005] term “knowledge worker” for 21st century workers or professional employees who areknowledge generators created by Peter Drunker. Potential people were involved in sharing ideageneration, innovation and willing to share the responsibility of producing a large company’scompetitiveness where traditional vertical design was no longer practice. New organizationaldesign recognizes the value of people and believes that they are able to communicate internallyand externally without limits and protocols. Organization is willing to get involved with newjoint venture, investing in new projects at different industries and looking for betteropportunity to enhance the business market local and international.The roles of organizational design in contemporary 21st century corporation are as follows; 1. Streamline and simplify vertical and linear structure as to improve ineffective workflow and system. Practicing a better communication, systematic procedures and leads to theBMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 4
  5. 5. creation of current earnings. E.g.: Country Insurances and Financial Services use Siebel Insurance and Universal Application Network (UAN) to streamline claims processing and simplify the business integration and as a result higher productivity by 40% gained in handling claims process. 2. Managing and operating dynamically leads to strategic, flexible and responsive organization. E.g.: Sprint (1901), a rural Kansas telephone company involved in manufacturing and distributing telecommunications equipment. In 1976 to mid 90’s, major diversified telecom player developer, built nationwide fiber-optic network, long- distance business creator, involved in the digital wireless business, took a minority stake in an Internet service provider, invested in broadband and moving forward to Latin American, Western European, and Asian markets. Taking risk by investing to new business with different technologies, markets, competitive contexts and succeed. 3. Intangibles of knowledge generation need to be upgraded as to form; to develop and to exchange business acknowledges talent markets and formal networks. Hence business leaders must build an intellectual property and talented people must be included. E.g.: British Petroleum stressed on transfer of tacit knowledge is better rather than accumulation and transmission of raw data. Communication network being introduced with high technology facilities; video-conferencing, multi-media and email. 4. Employees are having networks among other knowledge markets that allow free exchange of information and collaboration among professionals. This is called letting operational overlays within organizational knowledge markets which normally do not exist naturally but the organizations need to take in-charge to put them accordingly. 5. Leaders have a responsibility toward knowledge networks by letting them to generate general skills, incentives for membership, as well as standard and protocol for sharing information. It motivates the employees; self direct and support the group interest. 6. Attracting talent marketplaces in organization by being clear about the job open minded, responsive, and flexible and show them you care. Retaining and keeping them loyal by orient to your culture, follow up, recognize and meet their needs, train management and let them know you care. 7. Expanding the physical infrastructures to knowledge based network and trained more professional workers who capable to use high technology that facilitates working without an office. 8. Formal network is a modern structure in organization is better and more cheaply. Coordinating and controlling business by electronic. E.g.: H&M is distributing its clothing to a network of 700 suppliers where two-thirds located in low-cost Asian countries. Even without any factories, H&M can still broaden their market by being more flexible as it is a low cost strategy by lowering its costs. 9. Measuring performance using tool performance management by providing financial incentive to reward the employees as motivation. Currently, Balance Score Card (BSC) is one of the popular tools where company sets their targets or goals using Key Performance Indicator (KPI). This will assist the organization to monitor and measure performance guided by standard management system. E.g.: KFC Holdings Malaysia Berhad implemented BSC in 2004 for field people; restaurants managers, area managers and operations managers. Incentive paid on quarterly performance of 4 sections;BMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 5
  6. 6. customer, people, sales and profit. It is proven effective with the bottom line results, as the team work harder to achieve break thru results.“In this century, organizations still operate by creating and sharing vision, having a missionand set goals by using mental energy, physical energy, and spiritual energy” - LaFasto andLarson, (2001)The Paradox of Design in the 21st century is a huge organization containing operations with thesmall subunit agile, but not just like one model of buildings or rows or furniture with employeesacting upon only one part of a product. The new task for organizational design incorporatesskilled worker, furnish information on products and information exchanged on open fields. Itrecognizes the value of employees, individual plants, animals, the environment, small subunitfrom each other, give the largest organization and greater global good.Organizations need to change the traditional design roles for the new design-type roles to keeptheir workers generate new professional workers in the information age. Knowledge intoproducts that flows freely through the network silos work unhindered. The role oforganizational design in the 21st Century affords to lose the reins of control of workers to shareprofessional knowledge in order to create space and networks over time. In this century, aworker enjoys the sun in Kuala Lumpur may have a work partner in London. Time globalcommunication means that they integrate seamlessly, together, a world apart.Question 3:“Decision Making and the organization” … how does it work in your unit or department ororganization?Decision making is an art which need to be done scientifically and made wisely from smaller tolarger scale which related to both strategic and managerial planning. This process is importantto assist organization to be more effective, excellent and responsible in solving to any issuearises by looking and choosing the appropriate solution which forming a value fororganizational stakeholders. The traditional and modern participative techniques are combinedand known as behaviorally oriented decision techniques and it is connected with the otherfunctions; Planning, Coordinating, and Controlling.Applying the creative decision making by individuals or groups is classified as eitherprogrammed or non-programmed. Assists in finding best solution and alternative to clear-cutmechanical procedures as it may be repetitive scenario is known as programmed decisionswhich up to 90 percent of management decisions are programmed. Normally, the non-programmed decisions are exceptional as it made under crisis conditions and always facing somuch ambiguity that specific procedures unavailable.Managers can be taught and trained to be better decision makers with the positiveenvironment and support from their colleagues and superiors as to avoid from being unfairlycriticized for making wrong decisions. This will discourage the managers ‘playing it safe’ in orderto minimize the risk of criticism which reducing the business effectiveness in responding tomarket changes or prefer in blaming other people rather than getting on with the focus to runthe business. It drives business to huge success is the quality of decisions and with their goodimplementation. Good decisions mean good business.BMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 6
  7. 7. “Making good decisions is a crucial skill at every level” - Peter Drucker (1909), BusinessStrategist.Decision-making is a norm situation at all levels of a business. Grand strategic business plan oninvestment may be decided by the Board of Directors together with sharing a direction offuture growth. Managers must able to make tactical decisions about how their own departmentthat may contribute most effectively to the overall business objectives. But quite small group ofemployees are increasingly expected to make decisions about the conduct of their own actions,responses to customers and showing improvements to business practice. A systematic, carefulrecruitment, proper selection, good training, and enlightened management are obviouslyneeded. The responsibility shared by all the Head of Departments with their team or unit in acompany. Here I will share some scenarios or issues in my company, KFC Holdings MalaysiaBerhad where decision making need to be made and discussed which involved KFC Operations,KFC Marketing, KFC QA, KFC Project & Technical, KFC Finance and finally approved by themanagement.In Year 2008 the world is facing global financial crisis and Malaysia shows a lower GDP growthof 4.6% from 6.3% in 2007 but KFC Holdings Malaysia Berhad was announced as the bestperformer on the nation’s benchmark stock index, said it will sustain the fastest sales growth inat least 10 years as demand for deep-fried chicken defies an economic slowdown. A slowingeconomy isn’t stopping some of Malaysia’s 27 million populations from eating at KFC outlets,even as the chain’s prices aren’t cheaper compared with other meals such as a bowl of friednoodles. This success may due to the following strategic initiatives; 1. Strong expansion in of KFC network; 37 new stores in Malaysia 2. Introduction of KFC Breakfast Menu and 24 hours operating extension for 139 stores 3. Successful product launches; Colonel Chicken Rice which coincided with 35th anniversary celebrations. 4. Increased customers from 2pm to 6pm due to Jom Jimat or Snacking Promotion.The above initiatives involved few departments to come out with good business decision andmay take a long process due to meeting, brainstorming and comparing ideas to history results.Business decisions taken for initiatives No.1 & No. 2 are as follow;  Expansion of new stores; i) Location suggested by the Project & Technical supported with potential growth report of the area ii) Operations will review and decide after the site visitation and using ROI analysis based on population, strategic, visibility, sales and profit target using pacesetter report. iii) Finance will verify and summarize the ROI analysis by Operations. iv) Final decision to proceed with the proposal by the Board of Directors after deep discussion with the Vice President of Finance, Fast Food Division and Corporate Planning.  Breakfast Menu & 24 hours operating extension; i) Operations suggested the idea in order to increase sales growth and increase menu mix growth layer ii) Marketing and Operations will work together in deciding on the breakfast menu and also menu for extension hours where some stores may only served limited menu. iii) QA will do the testing products since the breakfast menu is new by ensuring the ingredients are HALAL and to come out with the cost price. iv) Operations and Marketing will work out the costing, deciding on the suitable selling price, the target margin and marketing plan. v) Finance will review the costing, preparing the menu mix analysis and supportingBMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 7
  8. 8. document vii) Presented to Board of Directors and will give the approval if satisfied with the top and bottom line.Level of decision making in my organization; Operational Decisions Tactical Decisions Strategic Decisions (locations / products) (marketing plan / (Final Decision on Executives/Managers no of additional staff the Proposal) to recruit) Board of Directors / Vice PresidentsThe decision making process (Vroom and Yetton’s Normative Model) in my organization;  Identify goals or momentum – {New locations or products}  Collect information & ideas – {Information relevant and up to date} Select Course of Action / Making Decision – (Several possible courses need to be measured and good solution)  Communicate and execute plan – {Communication is essentials and everyone in the team needs to be aware with what happening around and understand about their own part. Feel involved and motivated}  Outcome Result – {The analysis on ROI, costing, supporting document}  Measure Report – {Final stage where clear decision made and have to be effective}Fast Food Industries are highly relying on each other, their suppliers, their vendors and theircustomers. Decisions are taken during neutral or suitable situation as it may affect the respondsof other groups in the market. These is a very important steps, hence more implications needsto be review as far as possible and taken into account before decisions are made. As for KFCFast Food Division, we have proven “How We Worked Together” leads to “Break Thru”achievement."In large organizations the dilution of information as it passes up and down the hierarchy,and horizontally across departments, can undermine the effort to focus on common goals." -Mihaly Csikszentmihalyi (1934), Hungarian Psychology Professor.Question 4:How clear decision roles enhance Organizational Performance?“Who has the D? How Clear Decision Roles Enhance Organizational Performance” {January2006}]?Who has the D? The crucial issue in the heart to any high performance organization because“Decisions” reflects to the success. Organizations with good business strategy must also able tohandle well serious matters with effective decision making, executed quickly and consistently.These will guarantee superior financial results and shows that the organization is committed inmotivating the employees and they become “a great place to work”. Decisions routinely stallinside the firm normally may affecting the entire company’s organization especially the big one.Surveys by Bain & Company on more than 350 on global organizations are showing that only15% of the company practice effective decision making. The characteristic of a high-profileBMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 8
  9. 9. organization is superior decision effectiveness where better quality decisions are made onmarket to join, places, allocations. Consistency and speed-driving product innovation, brandspositioning or handling channel partners are required.“Many company often struggle to make decisions because too many people feel accountable– or no one does” – Paul Rogers, Bain & Company Consultant.Respected and high profile companies may also face ambiguity during the decision-makingprocess at one of four common bottlenecks: global versus local, center versus business unit,function versus function or inside versus outside partners.  1st bottleneck - global versus local decision making, conflicts in decision making between the global and the regional and the local entities especially on brand building and product development. E.g.: KFC image is more to family and looks old, should they change their image to younger version as to attract the younger crowds. This has been crucial issue to be value and to decide by the Marketing team and the Management.  2nd bottleneck - center versus business unit decision making, occurred in a multi- business company, between the center and the business units or the parent company and the subsidiaries. Who is more powerful or to have the authority to make the decision, the centre that running the business or the headquarters. E.g.: KFC to sell only limited menu during extension hours instead of full menu. It was recommended by KFC Operations and KFC Marketing but this proposal can only be implement with approval from the management.  3rd bottleneck - function versus function decision making, within a business across function a very common bottleneck always happen. Faces a balancing act between product development and marketing during the design of a new product by all manufacturers is one of the common scenario. Need to get the right people to get involved from the beginning as to have effective decisions. E.g.: Each new product of KFC needs to be certified as halal for the ingredients, healthy, suitable for all ages and to deliver on time as to ensure the product available date in the market as what has been advertised.  4th bottleneck - cross-functional decisions, there always an issues with the decision making especially at the challenging world today, where with respect to activities that are still controlled within the company versus provided by outsource providers or franchisees. E.g.: KFC Holdings Malaysia is the franchisee for Malaysia and the Franchisor for KFC brand is called YUM. Certain things that our market plans to do need to follow the guidelines given by them.Unclogging the decision-making bottlenecks by practicing a clear roles and responsibilities is agood step and recognized by a talented decision maker. Paul Rogers and Marcia Blenko – twoBain & Company Consultants, introduced a simple tool RAPID® - recommend, agree, perform,input and decide - to help companies develop clear decision-making guidelines. Liberties increating may damaged good system by taking an indecisive decision; hence it is important tostart clearing bottleneck • Recommend; Sharing ideas on key issue, collect information, furnish data and analysis as to make appropriate choice. Discuss with information provider, listen and combined opinions in order to win them.BMG 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 9
  10. 10. • Agree; Negotiate and modified the proposals by the recommenders if they have concerns about the earlier proposals. Exercise veto power may need during unresolved differences and issues to the decider between A and R. • Perform; Execute quickly and monitoring the decision being implanted effectively. • Input; Provide reliable information given to the recommender on the plan and practical implications. • Decide; Veto power in closing and to resolve any impasse in the decision-making process and committing the organization to implementing the decision.Decision-Role Pitfalls; In assigning decision roles:Only one person "has the D." Conflicts may arise if two or more people thinking theyre incharge in making decision.Monitor proliferation of "As." Too many people with veto power can damaged a good plan butwith too many people must agree, shows that good proposal havent pushed down far enoughor being considered properly in your organization.Avoid assigning too many "Is." Receiving too many inputs from people, you may find somecontributions are meaningless.How effective RAPID Model, refer to case study of Wyeth Pharmaceutical (center versusbusiness unit) in establishing new drug called Enbrel in the market. Move forward andexpanding the product by building a plant, Grand Castle in Ireland as competitors are alsoworking on the same product. As the progression is very slow and overlapping on so manyissues, they turned to RAPID. Identify recommenders to get good proposal, ideas andknowledge to push their business strategy. The top executives had to agree in so importantproposal since retained veto power. With the relevant information, evaluations and leads toinvestment decision was made where to collaborate with Immunex which is paid off. Being aleading brands for rheumatoid arthritis since then, till new drug Tygacil came to the market,Wyeth decided to move ahead rapidly with the new drug and with a better business strategy.Though many decision about Enbrel, lay with Cavan Redmond the executive vice president andgeneral manager but after gathering input with his team, at the end of executing the planrested firmly with business union. The brilliant strategic but implemented poorly always getbeaten by people who have crucial role but able to execute a good decisions.Company that struggles to make and execute good decisions has proven that the company isalways on track. When the managers finding less time in meeting, why they are they and onlyone person has the “D”, bottleneck disappears.Findings from the article; Company that start to practice some good roles becomes moreeffective, beginning with its next decision, with following the principles improved in makingbetter decision and execution substantially will have the results to show off.References: 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 10
  11. 11.$FILE/Anewbalancedscorecard.pdf 501 – TMA1/Maizatul Nazwa/Student Id No: 031100165 Page 11