MGT4005EF Business

Organization and

Management

Orientation

Contact Hours:

63 hours (60 teaching hours plus a 3-hour exam)

Medium:

English supplemented with Cantonese as appropriate (

Teaching notes and assessments are in English.)

To introduce the basic principles of management,

business structures, and the operation of various

functional units within organizations.

Aim

Learning Outcomes

Upon completion of the course, students should be able to:

a. Explain how an organization is structured, governed and managed by – and on behalf of – its stakeholders;

b. Identify and describe the key environmental influences and constraints on how the business operates;

c. Demonstrate knowledge of the characteristics of effective control systems in organizations;

d. Explain the basic concepts of marketing and marketing mix;

e. Identify and explain how major business functions are orchestrated to achieve business goals effectively

and efficiently in domestic and international operations;

f. Explain and compare the key elements of production and operations management in a manufacturing

business versus service organization;

g. Explain the role of financial management in organizations;

h. Recognize the principles of authority and leadership and how teams and individuals behave and are

managed, disciplined and motivated in pursuit of wider departmental and organizational aims and

objectives; and

i. Explain the role of the human resource management function in an organization.

Assessment

Weighting

Continuous Assessment 30%

- Written assignment 10% - Test 10%

- Group project 10% Examination (3 hours) 70%

Total: 100%

Students must pass BOTH the continuous assessment and the examination in order to obtain a passing grade in this course. The passing mark is 50.

Attendance

6

Attendance requirement: at least 80%

Attendance is calculated as follows:

a) Lateness or early departure not more than 15 minutes will be counted

as absence for 15 minutes.

b) 4 times of 15-minute absence will be treated as 1-hour absence.

c) Lateness or early departure more than 15 minutes will be taken as

absence from relevant class

(See Student Handbook for more details)

Basic Class Rules

The Instructor

Background

Roles at OUHK: Programme Leader / Lecturer

Academic qualifications

Doctor of Hotel and Tourism Mgt (candidate)

Master of Science in International Hospitality Mgt

Contact info

Office: Staff room on the 10/F

Tel: 3120-9866

E-mail: ychen@ouhk.edu.hk

Reflection

Briefly introduce yourself

Short reflection on your learning experience in the

Semester A, including:

Overall feelings

Any difficulties that you encountered

Any new/improvement plans for the new semester

…anything you would like share!

Effective organizational management

The various levels of management and the

function and inter-relationship of each

Supervision

Organizational Structure and Design

Purpose of Organizing

Organizational design – Work Specialization

Departmentalization by Type

Organizational Structure

Organizational Structure

Centralization vs Decentralization

Common Organizational Design

Strengths and Weaknesses of Traditional Organization Design

Organizational Design Challenges

Common Quality Management Techniques – Cost of Quality

1. Prevention costs

2. Appraisal costs

3. Internal failure costs

4. External failure costs

5. Opportunity costs

What is quality management all about?

Try to manage all aspects of the

organization in order to excel in all

dimensions that are important to

“customers”

Two aspects of quality:

• features: more features that meet customer needs =

higher quality

• freedom from trouble: fewer defects = higher

quality

The Quality Gurus – Edward Deming

1900-1993

1986

Quality is

“uniformity and

dependability”

Focus on SPC and

statistical tools

“14 Points” for

management

PDCA method

The Quality Gurus – Joseph Juran

1904 - 2008

1951

Quality is “fitness

for use”

Pareto Principle

Cost of Quality

General

management

approach as well as

statistics

History: how did we get here…

• Deming and Juran outlined the principles of Quality

Management.

• Tai-ichi Ohno applies them in Toyota Motors Corp.

• Japan has its National Quality Award (1951).

• U.S. and European firms begin to implement Quality

Management programs (1980’s).

• U.S. establishes the Malcolm Baldridge National

Quality Award (1987).

• Today, quality is an imperative for any business.

What does Total Quality Management

encompass?

TQM is a management philosophy:

• continuous improvement

• leadership development

• partnership development

Cultural

Alignment

Technical

Tools

(Process Analysis,

SPC, QFD)

Customer

Developing quality specifications

Input Process Output

Design Design quality

Dimensions of quality

Conformance quality

Six Sigma Quality

A philosophy and set of methods companies use

to eliminate defects in their products and

processes

Seeks to reduce variation in the processes that

lead to product defects

The name “six sigma” refers to the variation

that exists within plus or minus six standard

deviations of the process outputs

6

Six Sigma Roadmap (DMAIC)

Next Project Define Customers, Value, Problem Statement

Scope, Timeline, Team

Primary/Secondary & OpEx Metrics

Current Value Stream Map

Voice Of Customer (QFD) Measure

Assess specification / Demand

Measurement Capability (Gage R&R)

Correct the measurement system

Process map, Spaghetti, Time obs.

Measure OVs & IVs / Queues

Analyze (and fix the obvious) Root Cause (Pareto, C&E, brainstorm)

Find all KPOVs & KPIVs

FMEA, DOE, critical Xs, VA/NVA

Graphical Analysis, ANOVA

Future Value Stream Map

Improve Optimize KPOVs & test the KPIVs

Redesign process, set pacemaker

5S, Cell design, MRS

Visual controls

Value Stream Plan

Control Document process (WIs, Std Work)

Mistake proof, TT sheet, CI List

Analyze change in metrics

Value Stream Review

Prepare final report

Validate

Project $

Validate

Project $

Validate

Project $

Validate

Project $

Celebrate

Project $

Continuous improvement philosophy

1. Kaizen: Japanese term for continuous improvement.

A step-by-step improvement of business processes.

2. PDCA: Plan-do-check-act as defined by Deming.

Plan Do

Act Check

3. Benchmarking : what do top performers do?

Tools used for continuous improvement

1. Process flowchart

Tools used for continuous improvement

2. Run Chart

Performance

Time

Tools used for continuous improvement

3. Control Charts

Performance Metric

Time

Tools used for continuous improvement

4. Cause and effect diagram (fishbone)

Environmen

t

Machine Man

Method Material

The current process

Custome

r B

Operator Custome

r A

Receiving

Party

How can we reduce waiting

time?

Makes

custom

er wait

Absent receiving

party

Working system of

operators

Customer Operator

Fishbone diagram analysis

Absent

Out of office

Not at desk

Lunchtime

Too many phone

calls

Absent

Not giving

receiving party’s

coordinates

Complaining

Leaving a

message

Lengthy talk

Does not know

organization

well Takes too much time

to explain

Does not

understand

customer

Daily

average

Total

number

A One operator (partner out of office) 14.3 172

B Receiving party not present 6.1 73

C No one present in the section receiving call 5.1 61

D Section and name of the party not given 1.6 19

E Inquiry about branch office locations 1.3 16

F Other reasons 0.8 10

29.2 351

Reasons why customers have to wait

(12-day analysis with check sheet)

Ideas for improvement

1. Taking lunches on three different shifts

2. Ask all employees to leave messages when leaving desks

3. Compiling a directory where next to personnel’s name

appears her/his title