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Transcript of Chapter 8
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CHAPTER 8
EFFECTIVE MANAGEMENT AND ORGANIZATION STRUCTURE
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LEARNING OBJECTIVES1. Understand the Tauhid relationship
with management2. Understand the principle of
management from the Islamic perspective
3. Explain the levels of management and identify the key functions of managers
4. Explain the various type or organizational structure
5. Explain how accountability could be achieved through organizational structure
6. Describe the distributing authority among the job positions
7. Explain how to achieve good communication in the organization
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INTRODUCTION
MANAGEMENT IN ISLAM
Management in Islam is referring to how the social, economic and political side of a man’s life being manages with the Islamic values.
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.
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INTRODUCTION
DEFINITION OF MANAGEMENT
covers the process of getting activities completed efficiently and effectively with and through other people through planning, organizing, staffing, directing, coordinating, reporting and budgeting (Gulick & Urwick 1937).
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MANAGING BUSINESS CONCEPT IN ISLAM
covers a wide area of muamalah such as buying and selling, employment, paying and receiving wages. According to Surah An-nisa’ (4:29).
“ 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”
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MANAGING BUSINESS CONCEPT IN ISLAM
According to Dr Hassan Hj Mohd Ali, management objective can be accomplish through relationship of three main elements which are:
Philosophy and value which content policy, principle, motive and ethics.
Management and workers which have a combination of quality, skills and character.
System and practice through procedures, structure and working environment and customs.
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ISLAMIC PRINCIPLE IN MANAGING
ORGANIZATION Division of work Authority Discipline. Unity of command. Unity of direction. Subordination of individual
interests to the general interest.
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ISLAMIC PRINCIPLE IN MANAGING
ORGANIZATION Remuneration Centralisation Scalar chain Order EquityStability of tenure of
personnel Initiative Esprit de corps
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LEVEL OF MANAGEMENT
Top /High Level Management Set new plans to expend Communicate those plans to all managers Example: CEO, GM, President
Middle Management Determine how many new employee to
hire Determine how to obtain funds to finance
the expansion Supervisory Management
Directly deals with employee Example: branch manager
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FUNCTION OF MANAGER
Functions
Planning
Organizing
Leading
Controlling
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MANAGERIAL SKILLS
Technical
Conceptual
Interpersonal
Decision Making
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ORGANIZATIONAL STRUCTURE
Span of Control
The number of employees managed by each manager, which is determined by top management.
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.
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ORGANIZATIONAL STRUCTURE
Organizational Height
An organization can also be described by its height – that is the number of management layers from the bottom to the top.
A tall organization would have many layers, while a short (or flat) organization would have very few layers of management.
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
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DISTRIBUTING AUTHORITY AMONG THE JOB POSITION
Centralized
A structure where Most authority is held by the
high-level managers.
Decentralized
• A structure where authority is spread among several divisions or managers. • Each unit can make
quick decisions in response to local market conditions.
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STRUCTURE THAT ALLOW MORE EMPLOYEE INPUT
Matrix Organization
An organizational structure that enables various parts of the firm to interact to focus on specific projects.
Intrapreneurship
The assignment of particular employees of a firm to generate ideas, as if they were entrepreneurs running their own firms.
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DEPARTMENTALIZATION
Departmentalize
Assign tasks and responsibilities to different departments.
Departmentalize by function
Allocate their tasks and responsibilities according to employee functions
Departmentalize by product
Tasks and responsibilities are separated according to the type of product produced.
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DEPARTMENTALIZATION
Departmentalize by location.
Establishing regional offices to cover specific geographic regions.
Departmentalize by customer
Specialize on individuals, and others on large corporate customers.
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Tutorial Questions
How do you think the general management functions vary at each level of management within the firm?
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?
Discuss how global competition is changing our thinking about managing firms and subsidiaries in foreign countries.
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.
For what kinds of businesses might a narrow span of control work best? When might a wide span of control work best?