Chapter 1

1. Organisation - A deliberate arrangement of people assembled to

accomplish some specific purpose (that individuals independently could
not accomplish alone).
Common Characteristics of Organisations
Have a distinct purpose (goal)
Are composed of people
Have a deliberate structure
2. Management involves coordinating and overseeing the work activities of
others so that their activities are completed efficiently and effectively.
Efficiency
Doing things right
Getting the most output for the least inputs
Efficiently utilizing the scarce resources and not wasting resources.
Concerned with the means of getting things done

Effectiveness
Doing the right things
Attaining organisational goals
Doing those activities that can help achieve organisational goals
Concerned with the ends of attaining organisational goals

3. There are three specific categorization schemes to describe what

managers do:
1.Functions what do they perform?
2.Roles what do they play?
3.Skills what do they need?

Chapter 3
Omnipotent or Symbolic?
Omnipotent
The quality of the organisation is
determined by the quality of its managers
Organisations performance is due to the
decisions and actions of its manager
Managers are held accountable for an
organisations performance regardless of
the reasons

Symbolic
The ability of managers to affect outcomes
is beyond their control.
The outcomes are influenced and
constrained by external factors.
Managers symbolise control and influence
creating meaning out of randomness,
confusion and ambiguity

Environmental Uncertainty - the degree of change and complexity in an

organisations environment.

Environmental Complexity - the number of components in an organisations

environment and the extent of the organisations knowledge about those
components

Figure 3.4: Organisational stakeholders

Organisational Culture - The shared values, principles, traditions, and ways

of doing things that influence the way organisational members act.
Strong Cultures - Organisational cultures in which key values are intensely
held and widely shared.

Figure 3.5: Dimensions of Organisational Culture

Where does Culture come from?

Organisation founder
Vision and mission
Past practices
Top management behavior
Socialisation - The process that helps employees adapt to the organisations
culture.

How do Employees learn Culture?

Stories
Rituals
Material artifacts and symbols
Language

Global Perspectives

Parochialism - own perspectives

Ethnocentric Home country
Polycentric Host country

Geocentric - World

CHAPTER 5

What is social responsibility?

The Classical View
Managements only social responsibility is to maximise profits (create a
financial return) by operating the business in the best interests of the
stockholders (owners of the corporation).

The Socioeconomic View

Managements social responsibility goes beyond making profits to include
protecting and improving societys welfare.
Social Obligation - the obligation of a business to meet its economic and legal
responsibilities and nothing more.
Social Responsiveness - when a firm engages in social actions in response to
some popular social need.
Social Responsibility - a businesss intention, beyond its legal and economic
obligations, to do the right things and act in ways that are good for society.
Ethics - principles, values, and beliefs that define right and wrong behavior.

Moral Development
A measure of independence from outside influences
Levels of Individual Moral Development
Preconventional level
Conventional level
Principled level
Stage of moral development interact with:
Individual characteristics
The organisations structural design
The organisations culture
The intensity of the ethical issue

Chapter 6

What Is Change?
Organisational Change
Any alterations in the people, structure, or technology of an organisation

Unfreezing the status quo

Changing to a new state
Refreezing to make the change permanent

Types of Change
Structure
Changing an organisations structural components or its structural design
Technology
Adopting new equipment, tools, or operating methods that displace old skills
and require new ones

Automation - replacing certain tasks done by people with

machines
Computerisation

People
Changing attitudes, expectations, perceptions, and behaviors of the workforce

Why People Resist Change?

The ambiguity and uncertainty that change introduces
The comfort of old habits
A concern over personal loss of status, money, authority, friendships, and
personal convenience
The perception that change is incompatible with the goals and interest of
the organisation

Techniques for reducing Resistance to Change

Chapter 7

Decision-Making Process

Rational Decision-Making (ngaga keputusan ngena logic) describes choices that are logical, consistent and value maximising within
specified constraints.
Intuitive decision- making ( ngaga keputusan ngena naluri)
A subconscious process of making decisions on the basis of experience,
feelings, and accumulated judgment

Types of Problems
Structured Problems - straightforward, familiar, and easily defined
problems. (Programmed decision - repetitive decision)
Unstructured Problems - problems that are new or unusual and for
which information is ambiguous or incomplete. (Non-Programmed
Decisions unique require custom made solution cth MH370)

Types of Programmed Decisions

Procedure - a series of interrelated sequential steps
Rule - what a manager or employee can or cannot do.
Policy - guideline untuk a structured problem.

Decision-Making Styles
Linear Thinking Style - using external data and facts; a method of
processing information through rational, logical thinking.

Non-linear Thinking Style - internal insights, feelings, and

hunches.

Decision-Making Biases and Errors (cont.)

Anchoring Effect - fixating
subsequent information.

on

initial

information

and

ignoring

Confirmation Bias - seeking out information that reaffirms past choices

while discounting contradictory information.
Availability Bias - focusing on the most recent events.
Representation Bias - drawing analogies and seeing identical
situations when none exist.
Randomness Bias - creating unfounded meaning out of random events.

Sunk Costs Errors - forgetting that current actions cannot influence

past events
Self-Serving Bias - taking quick credit for successes
Hindsight Bias - mistakenly believing that an event could have been
predicted

Chapter 8

What Is Planning?
Planning - a primary managerial activity and an on-going
process that involves:
Defining the organisations goals
Establishing an overall strategy for achieving those goals
Developing plans to integrate and coordinate organisational work
activities

Types of Goals (F and S)

Financial Goals pasal duit jak2
Strategic Goals - related to the performance of the firm relative to
factors in its external environment (e.g., competitors).

Types of Plans
Strategic Plans
Establish the organisations overall goals

Operational Plans
Specify the details of how the overall goals are to be achieved

Long-Term Plans
beyond three years.
Short-Term Plans
one year or less.

Specific Plans
clearly defined and leave no room for interpretation.
Directional Plans
Flexible plans

Chapter 9
Strategic management - what managers do to develop the
organizations strategies.

TOE (EXTERNAL)

WIS (INTERNAL)

Managers at the top level of organisation typically are responsible for

corporate strategies.
Mangers at the middle level typically are responsible for the competitive
strategies.
Managers at the lower levels are typically responsible for the functional
strategies.

Competitive Strategies
Competitive strategy - an organizational strategy for how an
organization will compete in its business(es).
The purpose is to gain competitive advantage against its competitors

Five Competitive Forces (BRESS)

Threat of New Entrants
new competitors can enter an industry
Threat of Substitutes
switching costs and brand loyalty
Bargaining Power of Buyers
buyers have the market strength to hold sway over and influence
competitors in an industry
Bargaining Power of Suppliers
The relative number of buyers to suppliers and threats from substitutes
and new entrants affect the buyer-supplier relationship.
Current Rivalry
Intensity among rivals increases when industry growth rates slow,
demand falls, and product prices descend.

Chapter 10

A process involving decisions about six key elements:

Work specialization

(dividing work activities into separate job tasks)

Departmentalization

The basis by which jobs are grouped together

Chain of command

The continuous line of authority that extends from upper levels

of an organisation to the lowest levels of the organisation
clarifies who reports to whom.
Span of control

Span of Control - the number of employees who can be

effectively and efficiently supervised by a manager .
Centralization and decentralization

Centralization (Top managers jak ngaga keputusan) - the

degree to which decision making is concentrated at upper
levels in the organisation.
Decentralization (employess ulih bersuara provide
keputusan)- when an organisation relegates decision making
to managers who are closest to the action.

Formalization

Formalization (pekerjaan disama standard nggau

diguide ulih rules and procedures) - jobs within the
organisation are standardized and the extent to which
employee behavior is guided by rules and procedures

Organisational Designs (contd)

Contemporary Organisational Designs (contd)
Boundaryless Organisation
An flexible and unstructured organisational design that is intended to
break down external barriers between the organisation and its customers
and suppliers.
Removes internal (horizontal & vertical) boundaries:
Horizontal Boundaries: imposed by work specialization &
departmentalization.
Vertical Boundaries: separates employees into organisational level &
hierarchies
Eliminates the chain of command
Has limitless spans of control
Uses empowered teams rather than departments

Boundary less Organisation (contd)

Eliminates external boundaries:
External boundaries separate the organisation from its customers,
suppliers & other stakeholders.
Uses virtual or network organisational structures to get closer to
stakeholders (customers & suppliers).

Virtual Organisation
An organisation that consists of a small core of full-time employees and
that temporarily hires specialists to work on opportunities that arise. E.g.
Freelance draftsman for consulting company, University Part time lecturer.

Network Organisation

A small core organisation that outsources its major business functions

(e.g., manufacturing) in order to concentrate what it does best. E.g. Honda
outsources its car body manufacturing and concentrates on engine
design.

The Learning Organisation

An organisation that has developed the capacity to continuously learn,
adapt, and change through the practice of knowledge management by
employees.

Chapter 11
Communication - the transfer and understanding of meaning.

Functions of Communication (CMEI)

Control
Formal and informal communications act to control individuals behaviors
in organizations.
Motivation
Communications clarify for employees what is to be done, how well they
have done it, and what can be done to improve performance.
Emotional Expression
Social interaction in the form of work group communications provides a
way for employees to express themselves.
Information
Individuals and work groups need information to make decisions or to do
their work.

Barriers to Communication (FEDI)

Filtering - the deliberate manipulation of information to make it appear
more favorable to the receiver.
Emotion - disregard rational and objective thinking processes and
substitute emotional judgments
Information overload - occurs when information exceeds our
processing capacity.
Defensiveness - When threatened, reacting in a way that reduces the
ability to achieve mutual understanding.
Language - The different meanings of and specialized ways (jargon) in
which senders use words can cause receivers to misinterpret their
messages.
Jargon - specialized terminology or technical language that members of
a group use to communicate among themselves.
National Culture - Culture influences the form, formality, openness,
patterns and use of information in communications.

Overcoming the Barriers to Effective Interpersonal

Communications
Use Feedback
To eliminate misunderstanding and inaccuracies
Simplify Language
Using jargon only with those who know what it means
Listen Active
Constrain Emotions
Watch Nonverbal Cues

Chapter 12
Human Resource Management Process - activities necessary for
staffing the organisation and sustaining high employee performance

Consists of eight activities first three activities ensure that competent persons are identified and
selected
Next two activities are to provide the selected employees with necessary
orientation and training
Last three activities ensure that the high-performing employees are
retained

Identifying and Selecting Competent Employees

Human resource planning - ensuring that the organisation has the
right number and kinds of capable people in the right places and at the
right times
Involves two step - Assessing current human resources; and Meeting
future HR needs

Recruitment - locating, identifying, and attracting capable

applicants
Selection - screening job applicants to ensure that the most
appropriate candidates are hired
Realistic Job Preview (RJP) - a preview of a job that provides
both positive and negative information about the job and the
company
Orientation - introducing a new employee to his or her job and
the organisation
Training - to update the skills and knowledge of the employees
for better performance

CHAPTER 13
Focus of Organisational Behaviour
Individual behaviour - the actions of people.
contributions from psychologists
Attitudes, personality, perception, learning and motivation
Organisational behaviour (group behaviour)- the study of
the actions of people at work.
contributions from sociologists and social psychologists
Norms, roles, team building, leadership and conflict

Goals of Organisational Behaviour

To explain, predict and influence behaviour
Employee productivity - a performance measure of both efficiency and
effectiveness.

Absenteeism - the failure to show up for work.

Turnover - the voluntary and involuntary permanent withdrawal from an

organisation.

Organisational Citizenship Behaviour (OCB) - discretionary

behaviour that is not part of an employees formal job requirements, but
which promotes the effective functioning of the organisation

Job satisfaction - an employees general attitude toward his or her job.

Workplace misbehaviour - any intentional employee behaviour that is

potentially damaging to the organisation or to individuals within the
organisation.
deviance, aggression, antisocial behaviour and violence

CHAPTER 14

Group Structure
Role - behavior patterns expected of someone occupying a given
position in a social unit.
Roles oriented towards task accomplishment or maintaining group
member satisfaction
Norms - standards or expectations that are accepted and shared by a
groups members.
Norms related to levels of effort and performance, promptness,
socialising, dress and loyalty
Groupthink - when a group exerts extensive pressure on an individual
to align his or her opinion with that of others.

Work teams - groups whose members work intensely on a

specific, common goal using their positive synergy, individual
and mutual accountability, and complementary skills.

Advantages of Using Teams

Teams outperform individuals.
Teams provide a way to better use employee talents.
Teams are more flexible and responsive.
Teams can be quickly assembled, deployed, refocused, and disbanded.

Figure 14.9 Characteristics of Effective Team

CHAPTER 15

What Is Motivation?
Motivation - the process by which a persons efforts are energized,
directed, and sustained toward attaining a goal.

Early Theories of Motivation

Maslows Hierarchy of Needs (hierarchy of five needs physiological,
safety, social, esteem, and self-actualization)

McGregors Theories X and Y (X is negative view; Y is positive view)

Herzbergs Two-Factor Theory (the motivation theory that claims that

intrinsic factors are related to job satisfaction and motivation, whereas
extrinsic factors are associated with job dissatisfaction.)

McClellands Three Needs Theory (the motivation theory that sites three
acquired (non-innate) needs (achievement, power, and affiliation) as
major motives in work.)

Contemporary Theories of Motivation

Goal-setting theory - the proposition that specific goals increase
performance and that difficult goals, when accepted, result in higher
performance than do easy goals.
Three factors that influence goals-performance relationship: (1) goal
commitment, (2) adequate self-efficacy, and (3) national culture
Self-efficacy (seseorg yg yakin ulih ngaga keja nyak) - an
individuals belief that he or she is capable of performing a task.

CHAPTER 16

Who Are Leaders and What Is Leadership?

Leader - Someone who can influence others and who has
managerial authority.
Leadership - What leaders do; the process of influencing a group
to achieve goals.
Ideally, all managers should be leaders.

Trait Theories (1920s -1930s)

Later research on the leadership process identified seven traits
associated with successful leadership:
Drive,

the desire to lead,

honesty and integrity,
self-confidence,
intelligence,
job-relevant knowledge,
extraversion

Contemporary Views of Leadership

Transactional Leadership
Leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements.
Transformational Leadership
Leaders who inspire followers to transcend their own self-interests for the
good of the organization by clarifying role and task requirements.

Charismatic Leadership
An enthusiastic, self-confident leader whose personality and
actions influence people to behave in certain ways.
Characteristics of charismatic leaders:

Have a vision
Are able to articulate the vision
Are willing to take risks to achieve the vision
Are sensitive to the environment and follower needs
Exhibit behaviors that are out of the ordinary

Visionary Leadership
A leader who creates and articulates a realistic, credible, and attractive
vision of the future that improves upon the present situation.

Team Leaders Job

Includes coaching, facilitating, handling disciplinary problems,

reviewing team and individual performance, training, and
communication

Team Leadership Characteristics:

Having patience to share information
Managing Power
Legitimate power
The power a leader has as a result of his or her position.
Coercive power
The power a leader has to punish or control.
Reward power
The power to give positive benefits or rewards.
Expert power
The influence a leader can exert as a result of his or her expertise, skills,
or knowledge.
Referent power
The power of a leader that arises because of a persons desirable
resources or admired personal traits.