PROGRAMME : AP226 - BACH. OF CONSTRUCTION MANAGEMENT (HONS)

Transcription

1 PROGRAMME : AP226 - BACH. OF CONSTRUCTION MANAGEMENT (HONS) FACULTY: FACULTY ARCHITECTURE, PLANNING & SURVEYING COURSE : MGT415 INDIVIDUAL ASSIGNMENT TITLE : [B1] As a General Manager for a construction company, explain the steps that you would take to successfully implement MBO in your company. How would you convince the employees of your construction company that the implementation of MBO will not only benefit the company but also its employees? PREPARED FOR : EN. MOHD RIZAL BIN AB RAHMAN PREPARED BY : AZMI BIN CHE LEH a

2 TABLE OF CONTENTS INTRODUCTION 1 WHAT IS MANAGEMENT BY OBJECTIVE (MBO) 1 COMPANY QUALITY POLICY 2 COMPANY QUALITY OBJECTIVES 3 COMPANY ORGANIZATION 4 MANAGEMENT BY OBJECTIVE PRINCIPLE 5 CASCADING OF ORGANIZATIONAL GOALS AND OBJECTIVES 5 SPECIFIC OBJECTIVES FOR EACH MEMBER 5 PARTICIPATIVE DECISION MAKING. 5 EXPLICIT PERIOD. 6 PERFORMANCE EVALUATION AND FEEDBACK. 6 SMART METHOD 6 SPECIFIC 6 MEASURABLE 6 ACHIEVABLE / APPROPRIATE? 6 REALISTIC 6 TIME-RELATED. 6 IMPLEMENTATION 7 MANAGEMENT BY OBJECTIVE PROCESS 8 MANAGEMENT IMPLEMENTATION STEP 9 STEP 1: 9 STEP 2: 9 STEP 3: 9 i

3 STEP 4: 9 STEP 5: 9 IMPLEMENT THE SMART METHOD 10 SPECIFIC 10 MEASURABLE 10 ACHIEVABLE / APPROPRIATE? 10 REALISTIC 10 TIME-RELATED. 10 ADVANTAGE 10 THE COMPANY 10 EMPLOYEE 11 CONCLUSION 11 REFERENCE 12 APPENDIX 13 ii

4 INTRODUCTION Alhamdulillah, thanks to Allah for his prosperity and guidance. A big thank is to the project supervisor, MOHD RIZAL BIN AB RAHMAN, for his passionate assistance, and concern with his valuable advices and superb directions. The topic of this assignment is As a General Manager for a construction company, explain the steps that you would take to successfully implement MBO in your company. How would you convince the employees of your construction company that the implementation of MBO will not only benefit the company but also its employees? In this assignment I address it according to my knowledge about what its Management By Objective and my strategy and my opinion how to implement it in the company organization. I hope it will fulfill the topic above. WHAT IS MANAGEMENT BY OBJECTIVE (MBO) Planning and managing the strategy to achieve the company target or objective witch it must have a contribution or cooperation from bottom to top, meaning that junior staff to top management. The each employee must know their objectives that have been set by top management and management must do their part to directing employee performance again the objective. The main reason is we can upgrade or improve the organization performance and also motivate employee to achieved their target that have been set and it also a strategy of planning and getting results of the employee performance and achievement. MBO definition, Structural approach to organization-wide participative goal setting that aims to serve as a basis for (A) greater efficiency through systematic procedures, (B) greater employee motivation and commitment through participation in the planning process, and (C) planning for results instead of planning just for work. In MBO practice, specific objectives are determined jointly by managers and their subordinates, progress toward agreed-upon objectives is periodically reviewed, end results are evaluated, and rewards are allocated on the basis of the progress. The objectives must meet five criteria: they must be (1) arranged in order of their importance, (2) expressed quantitatively, wherever possible, (3) realistic, (4) consistent with the organization's policies, and (5) compatible with one another. Suggested by the management guru 1

5 Peter Drucker ( ) in early 1950s, MBO enjoyed huge popularity for some time but soon fell out of favor due to its rigidity and administrative burden. Its emphasis on setting clear goals, however, has been vindicated and remains valid. (management by objectives (MBO) definition) Management by Objectives was first outlined by Peter Drucker in 1954 in his book 'The practice of Management'. According to Drucker managers should avoid 'the activity trap', getting so involved in their day to day activities that they forget their main purpose or objective. One of the concepts of MBO was that instead of just a few top-managers, all managers of a firm should participate in the strategic planning process, in order to improve the implementability of the plan. Another concept of MBO was that managers should implement a range of performance systems, designed to help the organization stay on the right track. Clearly, Management by Objectives can thus be seen as a predecessor of Value Based Management! (Management by Objectives - SMART) COMPANY QUALITY POLICY Vision A successful and firm contractor in Malaysia for civil works and interior design contractor in 5 (Five) years. Mission To establish SS Industries Sdn Bhd as a preferred contractor for interior design and civil works construction in Malaysia. Emphasis on quality services and quality product. Policy SS Industries Sdn Bhd is committed to provide quality services and product to meet client/contractual requirements. We are also committed to continually implementing our quality management system that meet the requirements of ISO Continuous improvement to our Business and Operation procedures. 2. Continuous upgrading skill and capabilities of employee through training. 3. Continuous optimization of humans, financial and material resource of the company. 2

6 COMPANY QUALITY OBJECTIVES No Quality Objective Department Method Improvement Action 1. To achieve 80% customer satisfaction within 1 year 2. Ensure Reducing nonconformity works to 1 per month 3. 70% of supplier / subcontractor under good performance category. 4. Provide Training to employees at least 2 training a year per employee, related to quality issue where necessary. Project / Trading Customer Survey Form & Analysis 1. Maintain good relationship with customer and ensure prompt reply on all enquiries. Project / No of NCR 1. Obtain customer Trading approval before installation works begins. 2. To conduct inspection on the completed work before handover. 3. To ensure all installation according to customer agreed design. Purchasing Sub Contractor 1. To ensure quality service / products is provided by approved supplier / sub contractor HR Attendance List 1. To ensure competency of employee through effective training or refreshing session for skilled employee. 3

7 COMPANY ORGANIZATION BOARD OF DIRECTORS WAN ABDUL HAKIM WAN MOKHTAR (MANAGING DIRECTOR) RAJA HALILUDDIN RAJA HALID (BUSINESS DEVELOPMENT DIRECTOR) WAN AMAL WAN MOKHTAR (ACCOUNT DIRECTOR) SHAMSUL EZAN ZAIRI (GENERAL MANAGER) FARIDAH HUSSEN (HR MANAGER) RANIDAH MOHD UDIN (ACCOUNT MANAGER) JULIANA (ACCOUNT EXECUTIVE) PROJECT DEPARTMENT TRADING DEPATRMENT (FURNITURE) CONSTRUCTION (PROPERTY) WAN MOHAMAD NASRI (OPERATION MANAGER) SITE MANAGER (TEE MIN HOE) DESIGN & BUILT (INTERIOR DESIGN) AZMI CHE LEH (OPERATION MANAGER) AHMAD HUSZAINI (INTERIOR DESIGNER) MIOR ZAHID ZAWBER (BUSINESS DEVELOPMENT MANAGER) HASMAWIK (BUSINESS DEVELOPMENT EXECUTIVE) SITE MANAGER (TEE MIN HOE) ZURIANA ENDUT (PURCHASING EXECUTIVE) ROKIAH ABU BAKAR (PURCHASING CLARK) 4

8 MANAGEMENT BY OBJECTIVE PRINCIPLE Cascading of organizational goals and objectives The top management discusses what the vision of the company, in this case the company vision is set by top management. The vision was A successful and firm contractor in Malaysia for civil works and interior design contractor in 5 (Five) years. To achieve the goal all the employee must take part and each department have to set their object and the manager of every department have to discuss among themselves or make a brainstorming session and find what is the best objective of their department and staff to fulfill the company vision above. It means that in the organization they have their own goals, start from top to bottom. Specific objectives for each member The manager of the department now have to set objective for each member of department to fulfill the department objective at the same time can achieve the company vision. For example, Project Department staff must visit the customer and make a good relationship with them, they also must solve all the enquires as soon as possible and must visit customer 3 or 4 days a weeks, also they have to fill the Customer Survey Form & Analysis so they can put it in record and analyze them. Staff who involved at site must follow the rules that have been set. Make a report to the site manager if there have a problem at site. Any changes that happen at site must have approval or initial from person in charge. Participative decision making. The manager or top management must allow all staff to give their idea or create brainstorming session within all staff to get some idea in problem solving. If we allowed them to speak or give some ideas they will feel appreciate and also can motivate themselves. The reason is, normally the deal with customer, they also familiar with work at and some of them know the real problem and may be they have some idea how to solve the problem. This is the opportunities for them to give their idea or comments to upgrade the company organization. 5

9 Explicit period. Time to achieve the target, for example 5 years to achieve the goals or vision that have been set by the management or to achieve the department goals and individual goals. All the staff must take their responsibility and works hard to fulfill the individual objective at the same time fulfill the company vision by implement all the system that have been given. Performance evaluation and feedback. The managers have to monitor their staffs accordantly to know the staff performance and to make sure they follow the guide line that have been set. Every 1 year the company evaluates the staff to know their level of achievement. At this level the Top Management will give them rewards for those who improve and get the high marks of achievement. SMART METHOD Specific Does it clearly talk about one thing, and both the staff member and the supervisor know exactly what output they are talking about? Measurable Can the output be quantified? Achievable / appropriate? Does the staff member have the power to accomplish the task? Will it work? Realistic Based upon experience & data, can the output be achieved in the allotted time with a given amount of resources? Time-related. Is a specific, reasonable amount of time specified to accomplish each objective. 6

10 IMPLEMENTATION Department objective and individual objective must fulfill the company Vision. VISION GENERAL MANAGER PROJECT DEPT. 1. Achieve 80% customer satisfaction within 1 year. 2. Reducing non-conformity works to 1 per month TRADING DEPT. 1. Achieve 80% customer satisfaction within 1 year. 2. Reducing non-conformity works to 1 per month PROPERTY DEPT. Project finish within date line with not more then 5% defect. OPERATION MANAGER 1. Ensure all the document recordable. 2. Supplier payment not more then 30 days. PROJECT MANAGER 1. On time report. 2. Less Non Conformity Report (NCR) at site. DESIGN & BUILT DEPT. Project finish within date line with 0% defect. OPERATION MANAGER 1. All the documnet recordable. 2. Ensure the quality of the product. 3. Supplier payment not more then 30 days. INTERIOR DESIGNER Finish the drawing witin dateline and must have an approved. BUSINESS DEV. MANAGER Maintain good relationship customer at the same time sourcing for a new customer. BUSINESS DEV. EXE. 1 million sale within a year. 7

11 MANAGEMENT BY OBJECTIVE PROCESS ORGANIZATIONL OBJECTIVE REVIEWED Step 1: Manager set the objective for department. Manager discuss with staff to set the goal for department to fulfill the company mission. EMPLOYEE OBJECTIVE SET Step 2: Manager discuss with all staff to set their goal for each staff ( Individual objective) PROGRESS MONITOR Step 3: Manager or Top management monitor the progress of the staff to ensure they fulfill the goals and achieve it. PERFORMANCE VALUATED Step 4: Top Management and manager will evaluate the staff performance according to their goal that has been set. ACHIEVES REWARDED Step 5: Staffs that achieve their goal will get reward from the company. 8

12 MANAGEMENT IMPLEMENTATION STEP Step 1: To fulfill the vision of the company the manager has to design the plan and discuss among the staff to set the department objective. In this case one of MBO Principle will be implements, Participative decision making. Manager lead a brainstorming session among the staff to set the best objective for department that can fulfill the company vision. The best idea among the staff will be choose as the department objective, when the idea from the staff be use for the department objective they feel appreciated and automatically it will motivate them to achieve the objective. In this step the fourth MBO principle also get involved, explicit period. To achieve 70% customer satisfaction within a year for Project and Trading Department, meaning that the manager have to ensure that the objective have to be fulfill within 1 year. Step 2: Specific objective each member, individual objective will set to all staff, each member have their goals to fulfill. They have to meet the objectives that have been set for them. Their performance will be valued according to their objective ether they achieve it or not. For example: If the department target was to achieve 70% customer satisfaction, they have to set the individual goal that each member must visiting customer 3 day a week to get input or discuss with the customer if there any problem with the project. We have to ask them if there a problem in the project not just wait for our client to call us to discuss the problem. Step 3: In this step, the staff will be monitor by their manager or leaders. They have to ensure that the employee do their task that have been set. Example: The top level has to monitor either employee do their work accordantly or not. The drawing must approve by client before start the construction, submit the report every week, material check list have been approve before ordered and others requirement that they have to fulfill. Step 4: Their performance will be evaluates, normally once a year. The employee will be evaluates according to their performance to fulfill the goal that have been set. The performance evaluation and feedback. In this level the top management will know the staff performance and the staff that their performance meet the top management level requirement will be reward. Step 5: Employees that achieve the goal that have been set will get their reward. For example, will be promoted to manager level, upgrade their salary, vacation and others depend on the top management term and conditions. 9

13 IMPLEMENT THE SMART METHOD Specific This method will be implements in the Step 1 and Step 2. The objective must be clear and every staff member and the supervisor know exactly what they are talking about. For the individual employee they have to know who, what, when and where the work is to be done. Meaning is everyone knows who is doing what, where they are and when they should be doing the work and discover the goals that fit the vision statement. Measurable The out-put of the objective can be measure. For example, Ensure Reducing nonconformity works to 1 per month. Then the employees know what to do to achieve it. Achievable / appropriate? The objectives that have been set can be done. The objectives that cannot be fulfill by employee. Meaning that the top management has to study or get the full information and whither the employee can fulfill it before set the objective. It not the company will not achieve their vision. Realistic The top management also have to study either the objective can be fulfill within the time that they have been set. They have to get all the information and data before set the objective and the time required to achieve the target. If the objective needs 5 year to succeed then they have to make it 5 year not 3 year. Time-related. Is a specific, reasonable amount of time specified to accomplish each objective? (Same as realistic) ADVANTAGE The Company 1. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job. Satisfactions and commitment. 2. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period. 3. Clarity of goals The Top Management knows each employee objective and knows how to evaluate them. 10

14 4. The performance evaluation of the individual employees can be written around the work to be accomplished rather than more subjective items. 5. The employee understands better where he/she stands with the boss since the work and the evaluation of the work is known and discussed. 6. The company will achieve the target and employee will commit and motivated to bring the company to a high level. Meaning that the company will achieved the target and at the same time get the committed and knowledgeable employee. Employee 1. The work of the individual is clearly defined by the objectives in writing to prevent misunderstanding at a future date. 2. The employee knows their performance and how to up grate to achieve the target. 3. The objective will set depend on the employee level and scope of works and if they don t have knowledge regarding that objective, they can request from the management to have a training. This can upgrade employee knowledge and motivation. 4. The employee can learn new things and can get a new experience and knowledge. 5. Can motivate themselves to target for a high salary and to be as a management level by achieve the target that have been set. 6. The employee that achieves the target will be rewarded and this can motivate themselves and others staff to achieve their target. CONCLUSION To be successful with the management by objective, all the staff have to committed with their goals and the top management have to give their support to the employee to achieve their target. COMMUNICATION FROM TOP, DOWN AND HORIZONTAL IS THE KEY TO SUCCESS. 11

15 REFERENCE 1. Management by Objectives - SMART 2. MANAGEMENT by OBJECTIVES ( MBO) - focus on achievable goal MANAGEMENT BY OBJECTIVES (MBO): Six Stages (By Peter Dru management by objectives (MBO) definition 5. Management by Objectives (MBO) - Motivating people by aligning thei MBO - Management By Objectives 7. MBO Management By Objectives Performance Appraisal Employee Ev PERFORMANCE MEASUREMENT - Manager's Diagnostic Toolkit (f Use S.M.A.R.T. goals to launch management by objectives plan Management by objectives: Definition from Answers.com What Is Management By Objectives And Its Advantages And Disadvant Management by objectives - Wikipedia, the free encyclopedia 12

16 APPENDIX Customers survey form. 13

17 Customer complent from 14

18 Approved drawing 15