TECHNOLOGY MANAGEMENT Awaluddin Mohamed Shaharoun Email : awaludin@ic.utm.my

1. TECHNOLOGY MANAGEMENT Awaluddin Mohamed Shaharoun Email : awaludin@ic.utm.my prof.awaluddin@gmail.com

2. Technology Management Awaluddin MS Razak School of Engineering and Advanced Technology

3. What is Management? • A set of activities • planning and decision making, organizing, leading, and controlling directed at an organization’s resources • human, financial, physical, and information with the aim of achieving organizational goals in an efficient and effective manner.

4. Planning Organizing and decision making Inputs from the environment • Human resources Goals attained • Financial resources • Efficiently • Physical resources • Effectively • Information resources Controlling Leading Management in Organizations Figure 1.1

5. The Management Process • Planning and Decision Making • Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them. • Organizing • Determining how activities and resources are to be grouped. • Leading • The set of processes used to get members of the organization to work together to advance the interests of the organization. • Controlling • Monitoring the organization’s progress towards its goals.

6. Planning and Organizing Decision Making Determining how Setting the organiza- best to group tion ’ s goals and activities and deciding how best resources to achieve them Controlling Leading Monitoring Motivating members and correcting of the organization ongoing activities to work in the best to facilitate goal interests of the attainment organization The Management Process (cont’d) Figure 1.2

7. What is a Manager? • Someone whose primary responsibility is to carry out the management process. • Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

8. Kinds of Managers by Level • Top Managers • The relatively small group of executives who manage the overall organization. They create the organization’s goals, overall strategy, and operating policies. • Middle Managers • Largest group of managers in organizations who are primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers. • First-Line Managers • Managers who supervise and coordinate the activities of operating employees.

9. Kinds of Managers by Area • Marketing Managers • Work in areas related to getting consumers and clients to buy the organization’s products or services—new product development, promotion, and distribution. • Financial Managers • Deal primarily with an organization’s financial resources—accounting, cash management, and investments. • Operations Managers • Concerned with creating and managing the systems that create organization’s products and services—production control, inventory, quality control, plant layout, site selection.

10. Kinds of Managers by Area (cont’d) • Human Resource Managers • Involved in human resource planning, recruiting and selecting employees, training and development, designing compensation and benefit systems, formulating performance appraisal systems, and discharging low-performing employees. • Administrative Managers • Generalists who are familiar with all functional areas of management and who are not associated with any particular management specialty. • Other Kinds of Managers • Organizations have developed specialized managerial positions (e.g., public relations managers) directly related to the needs of the organization.

11. Levels of Management Top managers Middle managers First-line managers Other Finance Marketing Operations Administration Human resources Areas of Management Kinds of Managers by Level and Area Figure 1.3

12. Managerial Roles (Mintzberg) • Interpersonal Roles • Figurehead, leader, and liaison roles involve dealing with other people. • Informational Roles • Monitor, disseminator, and spokesperson roles involve the processing of information. • Decisional Roles • Entrepreneur, disturbance handler, resource allocator, and negotiator are managerial roles primarily related to making decisions.

13. Ten Basic Managerial Roles Table 1.2

14. Managerial Skills • Technical • Skills necessary to accomplish or understand the specific kind of work being done in an organization. • Interpersonal • The ability to communicate with, understand, and motivate both individuals and groups. • Conceptual • The manager’s ability to think in the abstract. • Diagnostic • The manager’s ability to visualize the most appropriate response to a situation.

15. Managerial Skills (cont’d) • Communication • The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others. • Decision-Making • The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities. • Time-Management • The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.

16. Desk Work 22% Scheduled Unscheduled Meetings Meetings 59% 10% Telephone 6% Touring Facilities 3% The Nature of Managerial Work • How CEOs spend a typical day—

17. Management: Science or Art? • Science of Management • Assumes that problems can be approached using rational, logical, objective, and systematic ways. • Requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems. • Art of Management • Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. • Requires the use of conceptual, communication, interpersonal, and time-management skills to successfully accomplish the tasks associated with managerial activities.

18. Sound educational base; continued life-long educational experiences Successful acquisition and utilization of basic management skills Initial job experiences; continued experiences through a variety of job assignments Becoming a Manager • Sources of Management Skills Figure 1.4

19. Managerial Function: Planning

20. The Environmental Context The organization’s mission • Purpose • Premises • Values • Directions Strategic goals Strategic plans Tactical goals Tactical plans Operational goals Operational plans Decision Making and the Planning Process Figure 7.1

21. Organizational Goals • Purposes of Goals • Provide guidance and a unified direction for people in the organization. • Have a strong affect on the quality of other aspects of planning. • Serve as a source of motivation for employees of the organization. • Provide an effective mechanism for evaluation and control of the organization.

22. Kinds of Goals • By Level • Mission statement is a statement of an organization’s fundamental purpose. • Strategic goals are goals set by and for top management of the organization that address broad, general issues. • Tactical goals are set by and for middle managers; their focus is on how to operationalize actions to strategic goals. • Operational goals are set by and for lower-level managers to address issues associated with tactical goals. • By Area • Goals set for the different functional areas of the organization. • By Time Frame • Goals may be set for long-term, intermediate-term, or short-term time frames and for explicit time frames or open-ended.

23. Mission: Our mission is to operate a chain of restaurants that will prepare and serve high-quality food on a timely basis and at reasonable prices. Strategic Goals President and CEO ï Provide 14 percent return to investors for at least ten years ï Start or purchase new restaurant chain within five years ï Negotiate new labor contract this year Tactical Goals Vice president ñ operations Vice president ñ marketing Vice president ñ finance ï Keep corporate debt to no more ï Open 150 new restaurants ï Increase per store sales 5 percent than 20 percent of liquid assets during next ten years per year for ten years for next ten years ï Decrease food-container costs by ï Target and attract two new market ï Revise computerized accounting 15 percent during next five years segments during next five years system within five years ï Decrease average customer wait ï Develop new promotional ï Earn 9 percent on excess cash this by thirty seconds this year strategy for next year year Operational Goals Restaurant manager Advertising director Accounting manager ï Implement employee incentive ï Develop regional advertising ï Split accounts receivable/payable system within one year campaigns within one year functions from other areas within ï Decrease waste by 5 percent this ï Negotiate 5 percent lower two years year advertising rates next year ï Computerize payroll system ï Hire and train new assistant ï Implement this year í s for each restaurant this year manager promotional strategy ï Pay all invoices within thirty days Organizational Goals(cont’d) • Kinds of Goals for a Regional Fast-Food Chain Figure 7.2

24. Responsibilities of Setting Goals • Who Sets Goals? • All managers should be involved in the goal-setting process. • Managerial responsibility for goal setting should correspond to the manager’s level in the organization. • Managing Multiple Goals • Optimizing allows managers to balance and reconcile inconsistent or conflicting goals. • Managers can choose to pursue one goal and exclude all others or to seek a mid-range goal.

25. Kinds of Organizational Plans • Strategic Plans • A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals. The plans are set by and for top management. • Tactical Plans • A plan aimed at achieving the tactical goals set by and for middle management. • Operational Plans • Plans that have a short-term focus.These plans are set by and for lower-level managers.

26. Time Frames for Planning • The Time Dimension of Planning • is based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved. • Long-range Plans • cover present and future strategic issues; normally extend beyond five years in the future. • Intermediate Plans • usually cover from 1 to 5 years and parallel tactical plans. • are the principal focus of organizational planning efforts. • Short-range Plans • have a time frame of one year or less. • include action plans and reaction (contingency) plans.

27. Responsibilities for Planning • Planning Staff • Planning staff personnel gather information, coordinate planning activities, and take a broader view than individual managers. • Planning Task Force • Created when the organization wants a special circumstance addressed. • Board of Directors • Establishes corporate mission and strategy. May engage in strategic planning • Chief Executive Officer • Usually serves as president or chair of the board of directors. Has a major role in the planning process and implements the strategy.

28. Responsibilities for Planning (cont’d) Executive Committee • Composed of top executives within the organization. Meet regularly for input to the CEO and review strategic plans. Line Management • Persons with formal authority and responsibility for management of the organization. Help to formulate strategy by providing information. Responsible for executing the plans developed by top management.

29. Ongoing planning process Action point 1 Action point 2 Action point 3 Action point 4 Successfully complete Develop plan, Implement plan and Specify indicators considering formally identify for the contingency plan or contingency plan contingency events contingency events events and develop contingency plans for each possible event Monitor contingency event indicators and implement contingency plan if necessary Contingency Planning • Contingency is the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. These plans help managers to cope with uncertainty and change. Figure 7.3

30. Developing tactical plans Executing tactical plans • Recognize and understand • Evaluate each course of action overarching strategic plans in light of its goal and tactical goals • Obtain and distribute • Specify relevant resource and information and resources time issues • Monitor horizontal and vertical • Recognize and identify human communication and integration resource commitments of activities • Monitor ongoing activities for goal achievement Tactical Planning • Developing and Executing Tactical Plans Figure 7.4

31. Types of Operational Plans Table 7.1

32. Barriers to Goal Setting and Planning As part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them. Managers must also know how to overcome them. Table 7.2

33. Starting Establishment Communicat- Collaborative the formal of organiza- ing organiza- Periodic Evaluation goal setting goal-setting tional goals tional goals review and planning program and plans and plans Meeting Verifiable goals and clear plans Counseling Resources Using Goals to Implement Plans • A formal goal-setting process such as management by objectives(MBO)is an effective technique for integrating goal setting and planning by giving subordinates a voice and clarifying what they are expected to accomplish. Figure 7.5

34. Strengths (Success) Improved employee motivation Enhances communication Fosters more objective performance appraisals Focuses attention on appropriate goals and plans Helps identify managerial talent Provides a systematic management philosophy Facilitates control of the organization Weaknesses (Failure) Poor implementation of the goal setting process Lack of top-management support for goal setting Delegation of the goal-setting process to lower levels Overemphasis on quantitative goals Too much paperwork and record keeping Managerial resistance to goal setting Using Goals to Implement Plans:The Effectiveness of Formal Goal Setting

35. Managerial Function: Organizing There are four basic management functions that make up the management process: Planning, Organizing, Influencing, and Controlling. Organising. Organising is concerned with assigning the tasks developed during planning to various individuals or groups within the organisation. Organising creates a mechanism to put plans into action.

36. Classical Organizing Theory The traditional organizing theory classifies the organizing efforts into four main components: • Structuring • Division of labour • Span of management • Scalar relationships

37. Structuring Structuring refers to designate relationships among resources of the management system. Organisation structure is represented by means of a graphic representation called an organisation chart.

38. Structuring • The most common method of instituting formal relationships is by establishing departments. • A department is a unique group of resources established by management to perform some organisational tasks. • The process of establishing departments within the management system is called departmentalisation.

39. Structuring • Organisation structure based on work functions (activities) is called functional departmentation. • The major categories into which the functions typically are divided are marketing, production, finance, etc.

40. (a) Primitive organization; (b) Functional departmentation.

41. Structuring Organisation structure based on product departmentation groups resources according to the products being manufactured.

42. Structuring Structure based primarily on territory departmentation groups according to the place where the work is being done or the geographic market area on which the management system is focusing.

43. Structuring • Structure based primarily on the customer departmentation is built in response to the organisation’s major customers. • Structure based primarily on manufacturing departmentalisation is built according to the major phases of the process used to manufacture products.

44. Structuring • An enterprise may combine several or all these methods in designing its organization. • In the following example, we see • functional subdivision at the top level, • product and process subdivision in manufacturing, • geographic and customer departmentation in marketing.

46. Division of labour • The second consideration of an organising effort is how to divide labour. • The division of labour is the assignment of various portions of a particular task to a number of organisation members. • Because of division, workers can specialise in a particular job and their skill for performing that job tends to increase. • They typically have one job and one place in which to do it and do not waste time moving from one job to another.

47. Division of labour Advantage: Workers concentrate on performing only one job and they naturally try to make the job easier and more efficient. Disadvantage: • Division of labour focus solely on efficiency and economic benefit and overlook the human variable. • Work that is extremely specialised tends to be boring and therefore usually causes productivity to go down.

48. Span of Management • The third consideration of an organising effort is the definition of span of management • Span of management means the number of individuals a manager supervises. • The more individuals a manager supervises, the greater the span of management.

49. Span of Management Several situational factors influence the size of an individual’s span of management: • similarity of functions, • geographic contiguity, • complexity of functions, • co-ordination, and • planning.

50. Span of Management ------------------------------------------------------------------------------------------------------- Factor Factor tends to increase Factor tends to decrease span of management span of management ------------------------------------------------------------------------------------------------------- Similarity of functions similar functions different functions Geographic contiguity physically close physically distant Complexity of functions simple tasks complex tasks Coordination little much Planning little much -------------------------------------------------------------------------------------------------------