TMA 2 BBM103 Principles and Practice of Management Assignment

This assignment solution addresses key concepts in management, including planning, organizational structure, and communication. It begins by examining the importance of planning in achieving organizational goals, contrasting the views of a manager who views planning as a waste of time with the perspective of his boss. The solution then delves into the principles of planning, organizational communication types, and communication barriers. A significant portion of the assignment focuses on organizational structure, recommending the use of a matrix structure and outlining its advantages and disadvantages. Finally, the assignment explores how businesses can prepare for and manage contingencies, providing practical measures for organizations to implement in challenging situations. The assignment offers a comprehensive overview of core management principles and their practical applications.

Running head: Principle and practice of management
Principle and practice of management

Principle and practice of management
Table of Contents
Introduction.................................................................................................................................................3
Answer 1.....................................................................................................................................................3
A. Planning..................................................................................................................................................3
B.Four principles of planning......................................................................................................................4
Answer 2.....................................................................................................................................................4
A. Organizational communication...............................................................................................................4
B.Barriers in effective communication........................................................................................................5
Answer 3.....................................................................................................................................................6
A. Organizational structure..........................................................................................................................6
B.Advantages and disadvantages of matrix organizational structure...........................................................8
Answer 4......................................................................................................................................................9
A. Businesses had any plans to face the situation.......................................................................................9
B. Measures that can be taken by an organization to manage contingencies...........................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Principle and practice of management
Introduction
The paper discusses that how planning, organizational structure and communication help
in maximizing profitability with reducing challenges and risks. Beside this, it depicts how
various steps can be taken to deal with contingencies while initiating the business.
Answer 1
A. Planning
Yes, it is true that planning is needed to attain desired goals and objectives. Without
planning, it is quite complex to attain these objectives and goals. Planning is one of the
significant functions of management that helps to grow and survive the business internationally.
With effective planning, the work can be assigned in different departments in the organization. In
the case study, the boss is justifying true to implement the planning process in the organization.
Strategic planning forces the managers or leaders to look at innovative and creative ways of
attaining objectives and goals (Steiner, 2010). Planning is essential to identify and analyze the
strengths and weaknesses of the organization as it is significant to determine and measure the
challenges and risks of the market. Along with this, strategic planning could also be used to
create a financial model or framework in the organization. A business planning is a platform and
guidance to reach at the top level in the competitive market. A plan is a set of intended steps or
actions for attaining significant objectives and goals. Good and effective planning improves and
enhances performance and productivity by better flexibility, focus, control, coordination and
time management. In the given case study, if the manager focuses on the effective planning
process then they can take ample of benefits while initiating the business actions globally.
Planning can thus help the organization build and improve the right and appropriate goals and
targets and help everyone monitor their efforts into meeting them (Khakee, 2008).
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Principle and practice of management
B.Four principles of planning
There are enormous fundamental principles that have been categorized to assist the
managers or leaders when they are occupied in the procedure of planning. Some of the principles
are discussed below.
Principle of alternatives: It is the process of planning and significant principle of planning that
include the expansion and development of various alternatives and then the managers select the
best alternative that is most effective and unique for attaining the company’s objectives and goals
(Mbaofficial, 2018).
Principle of timing: If the plans are not adequately and properly timed then planning could be
failed. It is unique principle of planning which helps in focusing on the small processes and
activities effectively. The planning process is not much effective and helpful if the plans are not
dynamically timed (Child, 2015).
Principle of commitment: This principle states that a time frame must be rendered by the plan
during which the commitments and assurance made in the plan have to be attained. This
commitment or assurance permits the leaders to accomplish the targets in the given time frame.
Principle of comparative strategies: This principle is essential while making the plans, the
managers or leaders need to consider and focus on the competitors to gain competitive benefits
in the global market. In this way, the managers or leaders must formulate their plans, procedure
and policies by considering the competition which is existed in the global market (Mbaofficial,
2018).
Answer 2
A. Organizational communication
There are various types of organizational communication; some of the types explain the
following:
Upward communication: This communication may be defined as a process of information
flowing from lower level to the top management. The upward communication is becoming more
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Principle and practice of management
famous in the companies to maintain good and reciprocal relationship at the workplace. The
upward communication further helps the workers to express their ideas, opinion, requirements
and feelings. By using this communication, top management and leaders can take effective
decisions to uplift profitability (Cheney, Christensen, Zorn Jr & Ganesh, 2010).
Downward communication: It is stated that downward communication is effective and unique
to enhance and boost profitability of the firm. The downward communication refers to a flow of
information, facts and messages from a top management to a lower level. With the help of
downward communication, the top management can easily collaborate and communicate goals
and allocate responsibilities and roles regarding attaining goals and objectives (Study, 2018).
Horizontal communication: This communication is a transmission of information and facts
between divisions, people, units and departments within the same level of hierarchy in the
organization. This type of communication helps in reducing and eliminating the
misunderstanding and among the workers who are functioning and working in the firm (Study,
2018).
Grapevine communication: It is an informal system or channel of business communication.
Despite presence of various formal channels in the company, the informal channels tend to build
and improve when individual interacts with other people in the firm. This communication system
helps further in generating a sense of unity and moral among the workers who exchange their
ideas, opinion and discuss their feedback with each other (Managementstudyguide, 2018).
B.Barriers in effective communication
Most of the common barriers in effective communication have been elaborated below.
Physical barriers: Poor lighting, background noise, and temperatures are included in the
physical barriers. These barriers may affect the success and targets of the organization to a large
extent.
Attitudes: Emotions or feelings such as sadness, and anger can taint objectivity. Negative
attitudes also affect the communication in the organization (Griffin, 2013).
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Principle and practice of management
Gender barriers: It is one of the significant barriers in communication that may impact on the
growth and targets of organization adversely. Ample of gender issues are raised at the workplace
which are not good for the employees and employers as well.
Interpersonal barriers: Inability and poor self esteem also affect the communication and
collaboration in the organization. This issue further led various issues related to production,
culture and values in the workplace (Griffin, 2013).
Language barriers: Due to language issue, the employee is unable to connect with top
management and managers at the workplace. Language barriers also affect the moral, loyalty and
self satisfaction of the workers.
Cultural barriers: Modern business is carried out in a global market thus, various cultural
issues are being faced by organization. The cultural differences may affect the effective and
strong communication at the workplace (Thecoachingroom, 2018).
Answer 3
A. Organizational structure
Currently, the company is using functional based structure which is not working properly.
It is recommended that Meranti construction Bhd can use matrix organizational structure to run
the business functions effectively and successfully. A matrix organizational structure is a firm
structure in which the reporting relationship is established as a matrix or grid instead of
traditional hierarchy. In other words, the workers have dual reporting relationships commonly to
both a product manager and functional manager. By using matrix organizational structure, the
firm is able to achieve ultimate objectives and goals. The workers are allocated an employment
or a project outside their own department for a relatively temporary period. It is a combination of
two or more type of organizational structures like the functional organizational structure and
projectized organizational structure as well. This combination may further help the company
attain higher effectiveness, readiness and flexibility. If the company uses this structure then it can
reduce the extra costs in the competitive market (Usmani, 2012). The recommended matrix
organizational structure has been drawn below.
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Principle and practice of management
7
Top management
Manufacturin
g manager
Sales manager Finance
manager
Human
resources
Manufacturin
g Unit
Sales unit Finance unit Human
resources unit
Manufacturing
Unit
Sales unit Finance unit Human
resources unit
Manager
project A
Manager
Project B
Manager
project C
Manufacturin
g Unit
Sales unit Finance unit Human
resources unit

Principle and practice of management
B.Advantages and disadvantages of matrix organizational structure
The advantages and disadvantages of matrix organizational structure have been discussed
below.
Advantages
 Resources could be used effectively and efficiently, since equipments and experts could
be shared across projects.
 Projects and products are formally and effectively coordinated and communicated around
functional departments.
 Information flows both up and across through the company.
 Effective and optimum use of resources can be possible with the help of matrix
organizational structure.
 Clear and effective articulation of project goals and objectives.
 Retention of professionals and experts teams through the matrix structure.
 The project managers can become trainers in the organization by performing tasks and
duties effectively and efficiently.
 The matrix structure builds and improves team spirit and high confidence and morale in
the organization.
 A matrix organizational structure permits for greater communication and further it also
boosts team concepts and spirit among the employees globally.
 Empowers workers by rendering greater authority and responsibility. It also increases
motivation and confidence level of the workers (Quain, 2018).
Disadvantages
 This organizational structure increases and enhances complexities at the workplace.
 Increases conflicts and issues in the organization.
 This organizational structure also increases management overhead costs.
 Although, matrix organization is dynamic and unique in terms of both function and form
but it also leads various psychological stress amongst the employees (Study, 2018).
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Principle and practice of management
 A matrix organizational structure does not exhibit clear and unique lines of responsibility
or authority in that the managers-employees relationship might not be clear. As a result,
many of the employees become disturbed by the uncertainty.
 Multiple manager, process, procedures, and conflicting policies may lead to ineffective
and poor management (Nordmeyer, 2018).
Answer 4
A. Businesses had any plans to face the situation
Yes, it is true that businesses had various plans to face the situations in the global market.
When people face stressful and wrong situations whether in business or in personal life it is very
significant and easy to worry, be fearful, panic and get stressed. Managing tough and complex
situations in businesses is a turning point for many and failure for others. Tough circumstances
are different in every business (Sharma, 2015). Firstly, the company had consulted with experts
or professionals such as business consultants, business adviser and business analyst. Look
forward is one of the significant ways which is being used by the organization to handle bad
situations as it also reduces the possibility of accidents. It is noted that the organization focuses
on the communication and collaboration to face and manage the various worst situations.
Communication is a significant plan that helps in estimating and analyzing the situation in a
hassle free manner. Apart from this, the business invests huge amount to carry out the activities
and operations successfully. In this way, it can be said that businesses had plans to face the
situation effectively and efficiently (Berler, 2015).
B. Measures that can be taken by an organization to manage
contingencies
There are ample of measures that could be taken by the company to handle and tackle the
contingencies at the workplace. Some of the measures are elaborated below.
 The organization needs to figure out and analyze that how to react on the bad situations
or circumstances while implementing the business.
 The excellent way to handle with adverse situations is to stay positive and happy at the
workplace while tackling these situations.
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Principle and practice of management
 Innovative and unique strategies, policies and approaches could be used to run the
business operations and functions effectively. Along with this, the top management helps
the problematic worker to get back on track in the workplace .
 A marketing research and survey can be done to manage the bad situations. Aside this,
the firm needs to keep motivated the workers to encourage and improve their moral and
self satisfaction.
 A contingency plan needs to be implemented to tackle the situation globally. It will
further help to gain competitive benefits in the competitive market.
All these measures or actions can be taken or implemented by an organization to handle
contingencies (Javitch, 2009).
Conclusion
It is concluded from the above study that planning, communication and organization
structure are needed to compete and strive with rivals in the market. Along with this, effective
steps are taken to face the bad situation or circumstances at the workplace.
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Principle and practice of management
References
Berler.C.,(2015). 6 ways you can make bad situations better [Online], Retrieved from
https://www.entrepreneur.com/article/248070
Cheney, G., Christensen, L. T., Zorn Jr, T. E., & Ganesh, S. (2010). Organizational
communication in an age of globalization: Issues, reflections, practices. Waveland Press.
Child, J. (2015). Organization: contemporary principles and practice. John Wiley & Sons.
Griffin, R. W. (2013). Fundamentals of management. Cengage Learning.
Javitch.D.G.,(2009). 5 Steps to deal with difficult employees [Online], Retrieved from
https://www.entrepreneur.com/article/201950
Khakee, A. (Ed.). (2008). New principles in planning evaluation. Ashgate Publishing, Ltd..
Managementstudyguide.,(2018). Grapevine communication(Informal business communication)
[Online], Retrieved from
https://www.managementstudyguide.com/grapevine_communication.htm
Mbaofficial.,(2018). Briefly explain the principles of planning [Online], Retrieved from
https://www.mbaofficial.com/mba-courses/principles-of-management/briefly-explain-
the-principles-of-planning/
Nordmeyer.B.,(2018). Disadvantages of organizations with the matrix approach [Online],
Retrieved from https://smallbusiness.chron.com/disadvantages-organizations-matrix-
approach-22115.html
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Principle and practice of management
Quain.S.,(2018). The advantages of matrix organizational structure [Online], Retrieved from
https://smallbusiness.chron.com/advantages-matrix-organizational-structure-286.html
Sharma.V.,(2015). How to handle tough situations in business [Online], Retrieved from
http://www.klientsolutech.com/how-to-handle-tough-situations-in-business/
Steiner, G.A. (2010). Strategic planning. Simon and Schuster.
Study.,(2018). Downward communication: definition, advantages & disadvantages [Online],
Retrieved from https://study.com/academy/lesson/downward-communication-definition-
advantages-disadvantages.html
Thecoachingroom.,(2018). 7 Barriers to effective communication killing your relationships
[Online], Retrieved from https://www.thecoachingroom.com.au/blog/7-barriers-to-
effective-communication-killing-your-relationships
Usmani.F.,(2012). What is matrix organizational structure [Online], Retrieved from
https://pmstudycircle.com/2012/08/what-is-a-matrix-organization-structure/
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