MANAGEMENT

MANAGEMENT

SCOPE OF MANAGEMENT

SCOPE OF MANAGEMENT

CHARACTERISTICS of MANAGEMENT

IMPORTANCE of MANAGEMENT

IMPORTANCE of MANAGEMENT

MANAGERIAL ROLES

EVOLUTION OF MANAGEMENT THOUGHT CLASSICAL PERSPECTIVE:

BUREAUCRATIC ORGANISATIONS ( Max Weber): HIERARCHY DIVISION OF WORK; specialised jobs RULES & PROCEDURE RECORDS IMPERSONAL RELATIONSHIPS ADMINISTRATIVE CLASS; beaurocrats

EVOLUTION OF MANAGEMENT THOUGHT SCIENTIFIC MANAGEMENT (Taylor):

Scientific task planning Time & motion studies Standardisation Differential Piece rate Functional Foremanship

EVOLUTION OF MANAGEMENT THOUGHT

ADMINISTRATIVE THEORY (HENRY FAYOL):

Division of Work; Specialisation of labour & productivity Authority; must accompany responsibility Discipline; systemmatic functioning Unity of Command; each subordinate having one Boss Unity of Direction; all efforts focussed to Orgns Goal Subordination of individual interests to organisations interest

EVOLUTION OF MANAGEMENT THOUGHT ADMINISTRATIVE THEORY (HENRY FAYOL): Balance between centralisation & decentralisation concentration vs. distribution of power Scalar chain; observe Formal chain of Command, Top to Bottom Order; orderly arrangement of men & material Equity; fair treatment Initiative; opportunity to initiate & implement Plans

EVOLUTION OF MANAGEMENT THOUGHT

NEO-CLASSICAL / HUMAN RELATIONS PERSPECTIVE: Hawthorne experiments Illumination Experiments Financial Incentives Experiments

Conclusion:
Special Attention, feeling of Belongingness & sympathetic Supervision are the motivating factors rather than physical working conditions / financial incentives

HUMAN RELATIONS AS A REFINEMENT

CLASSICAL THEORY IMPERSONAL ORGNS O.B. PRODUCT OF RULES FOCUS IS ECO NEEDS OF WORKERS AUTHORITARIAN PRACTICES RESULT: WORK ALIENATION DISSATISFACTION NEO CLASSICAL THEORY ORGNS A SOCIAL SYSTEM O.B. PRODUCT OF FEELINGS FOCUS IS EMOTIONS DEMOCRATIC PRACTICES RESULT: HAPPY EMPLOYEES &HIGHER PRODUCTIVITY

EVOLUTION OF MANAGEMENT THOUGHT

BEHAVIOURAL SCIENCES THEORY:

Elton Mayo, Abraham Maslow, Douglas Mcgregor People inherently love work People are more self-driven & creative than opportunities given Create Positive Work Environment
Clearly defined Goals Incentives designed to Improve Performance Participative decisions Conflicts confronted openly

BEHAVIOURAL SCIENCES; A REFINEMENT

HUMAN RELATIONS People want to Belong Seek participation on Routine matters Subordinates involvement will increase belongingness BEHAVIOURAL SCIENCES People want to Belong & Contribute Participation in Routine plus Important Matters Subordinates involvement will increase productivity, quality of decision making, self-direction & motivation

EVOLUTION OF MANAGEMENT THOUGHT QUANTITATIVE APPROACH:

Use of maths & stats for managerial decision making Criteria such as costs, revenues,return on investment etc determine decision making Focus: Computer based MIS

EVOLUTION OF MANAGEMENT THOUGHT

MODERN MANAGEMENT THOUGHT:
Mary Parker Follet Constructive Conflict Law of the Situation; Market conditions Group Ethics over Individualism Authority & Responsibilty

EVOLUTION OF MANAGEMENT THOUGHT Peter Drucker:

MBO; Joint Goal Setting Decentralisation; criticised functional specialisations & favoured self contained independent Product divisions Structure; reduction of Layers Executive Development

MANAGEMENT IN THE NEW WORKPLACE (CHARACTERISTICS)

OLD WORK PLACE RESOURCES:PHYSIC AL ASSETS WORK: STRUCTURED WORKERS: LOYAL EMPLOYEES NEW WORK PLACE BITS; INFO, IDEAS FLEXIBLE, VIRTUAL EMPOWERED EMPLOYEES, FREE AGENTS, RESPOD TO CHANGING MARKETS,COMPETIT ION, SEIZE OPPORTUNITIES & SOLVE RECURRING PROBLEMS

MANAGEMENT IN THE NEW WORKPLACE (CHARACTERISTICS)

OLD WORK PLACE STRUCTURE: TALL HIERARCHY DECISION MAKING: CENTRALISED WORK: REAL NEW WORK PLACE FLAT DECENTRALISED VIRTUAL TEAMS,FLEXI TIME EX: IBM needs to staff a
Project; Team raised consisting of suppliers, customers, interim Managers (skill; risk takers, quick learners,

MANAGEMENT IN THE NEW WORKPLACE (FORCES)

Old Work Place TECHNOLOGY: MECHANICAL WORKFORCE: HOMOGENEOUS VALUES: STABILITY, EFFICIENCY EVENTS; CALM, PREDICTABLE New Work Place DIGITAL, EBUSINESS DIVERSE(GLOBALISA TION) CHANGE, SPEED TURBULENT, UNPREDICTABLE

MANAGEMENT IN THE NEW WORKPLACE (MANAGEMENT COMPETENCIES)

OLD WORK PLACE
Leadership : autocratic Focus: profits Doing work: individuals Relationships: conflicts Design: efficiency in performance

NEW WORK PLACE

EMPOWERING CONNECT WITH CUSTOMERS, EMPLOYEES TEAMS COLLABORATION BUILD LEARNING ORGANISATION; VALUES EXPERIMENTATION, RISK TAKING, TECHNOLOGY & KNOWLEDGE SHARING Ex:WIPRO;writes software, performs

PLANNING & GOAL SETTING

GOAL- DEFINES PURPOSE OF EXISTENCE OF THE ORGANISATION PLAN- BLUEPRINT FOR SPECIFYING RESOURCE ALLOCATIONS,SCHEDULES, & TASKS

 LEGITIMACY: PURPOSE OF EXISTENCE SOURCE OF MOTIVATION & COMMITMENT:identification with Co, reduces uncertainty & clarifies goals for accomplishment RESOURCE ALLOCATION:employees, equipment, Capital GUIDE TO ACTION:sense of direction

PURPOSE OF GOALS & PLANS

PURPOSE OF GOALS & PLANS

STANDARDS FOR PERFORMANCE:specifies desired outcomes & performance criteria

SINGLE USE PROGRAMS:

SINGLE USE & STANDING PLANS

STANDING PLANS POLICY:
BROAD RULES, GENERAL GUIDES TO ACTION EX: SEXUAL HARRASSMENT POLICY, EMAIL USAGE POLICY

PLANS TO ACHIEVE ONE-TIME GOALS LARGE IN SCOPE EX:BLDNG NEW HQ, CONVERTING ALL PAPER FILES INTO DIGITAL

PROJECT:
PLANS TO ACHIEVE ONE-TIME GOALS SMALLER IN SCOPE EX:RENOVATING OFFICE, SETTING UP

PROCEDURE: PRECISE STEPS TO ATTAIN GOALS

EX:EMPLOYEE GRIEVANCES, HANDLING

STRATEGIC MANAGEMENT
SET OF DECISIONS USED TO FORMULATE STRATEGIES TO PROVIDE A FIT BETWEEN ORGANISATION & ITS ENVIROMENT TO ACHIEVE ORGANISATIONAL GOALS

GRAND STRATEGY
GROWTH:
INTERNALLY: BY EXPANSION;NEW PRODUCTS, NEW MARKETS EXTERNALLY:ACQUISITIONS RELATED TO CURENT BUSINESSES EX: CITIBANK & TRAVELERS MERGE TO FORM CITICORP

GRAND STRATEGY
STABILITY:
AFTER RAPID GROWTH INTEGRATE BUSINESSES

RETRENCHMENT:
DECLINE IN DEMAND leads to FORCED LIQUIDATION OF BUSINESSES

SM PROCESS
EVALUATE EXISTING MISSION, GOALS &PLANS (SITUATIONAL ANALYSIS) SWOT: INTERNAL STRENGTHS & WEAKNESSES: P&L STATEMENTS, BUDGETS, EMPLOYEE MORALE SURVEYS MARKET SHARE CUSTOMER SATISFACTION DISTRIBUTION CHANNELS PROFIT-MARGINS RETURN ON INVESTMENT QUALITY CONTROL SYSTEM STATE OF TECHNOLOGY

SM PROCESS
EXTERNAL OPPORTUNITIES & THREATS:
COMPETITORS CUSTOMERS SUPPLIERS LABOUR SUPPLY TECHNOLOGICAL DEVELOPMENTS POTICAL & INTERNATIONAL EVENTS SOCIO CULTURAL CHANGES

SM PROCESS
FORMULATE STRATEGY:
CORPORATE STRATEGY:BOSTON CONSULTING GROUP (BCG) MATRIX
STAR; HIGH MKT SHARE, HIGH BUSN GROWTH RATE CASH COWS; HIGH MKT SHARE, LOW BUSN GROWTH RATE Q MARKS; LOW MKT SHARE, HIGH BUSN GROWTH RATE DOGS; LOW MKT SHARE, LOW BUSN GROWTH RATE

SM PROCESS
MICHAEL PORTERS BUSINESS STRATEGY:
DIFFERENTIATION
CREATIVE FLAIR STRONG MARKETING CAPABILITIES REWARDS EMPLOYEE INNOVATION CORPORATE REPUTATION FOR QUALITY FLEXIBILTY IN OPERATIONS STRONG CUSTOMER LOYALTY EX: REEBOK, NIKE

SM PROCESS
COST LEADERSHIP:
STRONG CENTRAL AUTHORITY TIGHT COST CONTROLS SOPS FOLLOWED EFFICIENT PROCURING & DISTRIBUTION SYSTEMS CLOSE SUPERVISION EX:BIG BAZAAR RETAIL, LOE COST DELL COMPUTERS

SM PROCESS
FOCUS:
CONCENTRATES ON A NARROW TARGET MARKET EX: LOW-COST AIRLINES JET LITE PLYING LIMITED ROUTES & STILL MAKING PROFITS

SM PROCESS
STRATEGY IMPLEMENTATION:THROUGH CHANGES IN LEADERSHIP
PERSUASION, MOTIVATION

ORGANISATION STRUCTURE
ORGN CHARTS,DECENTRALISATION

INFO & CONTROL SYSTEMS

REVISE REWARDS, BUDGET ALLOCATIONS

HR
RECRUITMENT, LAYOFFS, TRANSFERS

ORGANISING
ORGANISING: DEPLOYMENT OF ORGANISATIONAL RESOURCES TO ACHIEVE STRATEGIC GOALS ORGANISATION STRUCTURE: FRAMEWORK DEFINING HOW TASKS ARE DIVIDED, HOW RESOURCES ARE DEPLOYED & DEPARTMENTS COORDINATED

ORGANISING
WORK SPECIALISATION: The degree to which organisational Tasks are subdivided into individual jobs; also called division of labour. CHAIN OF COMMAND: Unbroken line of authority which links all individuals in the orgn. & specifies who reports to whom.

ORGANISING
AUTHORITY: Formal & legitimate Right of a Manager to make decisions, issue orders & allocate resources. RESPONSIBILITY: Duty to perform the Task

ORGANISING
ACCOUNTABILITY: Mechanism which makes people with Authority & Responsibility answerable to people in their Chain of Command Delegation: Process used to transfer Authority & Responsibilty to subordinates

ORGANISING
Line Dept: which performs tasks related to the Primary Goal of the orgn. Ex;Production, Sales, Accounts Staff Dept: which provides Advisory services Centralisation: location of decision making near top organisational levels Decentralisation: location of decision making near lower organisational levels

Functional Structure

Divisional Structure

MATRIX STRUCTURE
Combines both Functional & Structural features:
Functional hierarchy runs Vertically (provides traditional control within depts) Divisional reporting exists Horizontally (Provides coordination across depts)

MATRIX STRUCTURE

LEADING FOR HIGH PERFORMANCE

LEADERSHIP: the ability to influence people towards the attainment of organisational goals LEADERSHIP VS. MANAGEMENT: MANAGEMENT: promotes stability, order, problem solving, within the organisational structure & systems LEADERSHIP: promotes vision, creativity & change

LEADERSHIP VS. MANAGEMENT:

LEADERSHIP Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Initiates change MANAGEMENT Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberated stabilizing

TRANSACTIONAL vs.TRANSFORMATIONAL LEADERSHIP

TRANSACTIONAL Clarifies role & tasks of subordinates Provides rewards Tolerant & fair Pride in smooth functioning of organisation Concern;impersonal aspects like plans, budgets

TRANSFORMATIONAL
Ability to inspire & motivate people to perform more than their capabilities through personal sacrifice Obsessed by visionary ideas to drive people Lofty visions, communicate to followers & win trust Ability to make the

Example of Transformational Leaders:

Richard Kovacevich of WELLS FARGO (Financial Institution)
For selling motivated 1st line employees with slogan;Mind share plus Heart share = Market share Rewards employees Spends time with employees interacting, giving pep talks Awarded Banker of the Year 2003; cr to his 1,40, 000 employees.

Effective Leader

COMBINE Transactional + Transformational Qualities

THE LEVEL 5 LEADER