Lecture 5

Management Tools & Techniques

 Management By Exception
Management is to focus only on exceptions
to the plan during implementation of plan.
Management designs plan, set tasks ,
prepares human with optimum level of
performance, designs and implement control
mechanism and lead people to work.
So, management will only give attention to
the deviations of the plan from the
environmental conditions forecasted.
 Management By Exception
Management will give corrections to the
exceptions and get the plan on right track.
This technique is known as management by
exception.
 Management By Consensus
This technique is developed in Japan.
It overcomes the flaws of democratic
management.
Democracy is the rule of majority. A section of
people is dissident under this practice. They
do not agree with the majority and thus they
could not give full commitment to the
decision taken by the majority.
 Management By Consensus
Management by consensus tells that
everybody shall come to a consensus
decision because everybody wants welfare.
Progress, and prosperity of the organization.
So, they must agree on a point of solution or
decision that will provide the best benefit to
the organization.
 Management By Consensus
It needs an open dynamic and organization oriented
mind of the members/managers.
Everybody shall place their opinion on the table with
reasons and justification. All will evaluate each
proposal constructively keeping in mind the
organizational benefit only.
No criticism, no neglect, no undermining; only merit
/ demerit points will be pointed out and be discussed
in the light of organizational gain.
So, everybody shall come to a consensus at times.
 Socio-technical systems Approach of
Management

Socio-technical approach of
management is also called socio-
technical systems theory of
management.
It focuses on close relationships
between the technical system and
people as technical system has a great
effect on social system and vice versa.
 Socio-technical systems Approach of
management

It also reflects the interaction between

societys complex infrastructures and
human behaviour.
The approach recognizes the
interactional effects of all these
elements on work design and work
organization.
 Socio-technical systems Approach of
management
The pioneers of socio-technical theory are
Eric Trist and Fred Emery. Other original
contributors are Hugh Murray, Albert Cherns,
Enid Mumford, H.J. Leavitt, and Frank Heller
Socio-technical systems theory is a theory
about the social aspects of people and
society and technical aspects of machines
and technology.
 Principles of Socio-technical Theory

Interaction. Interaction of social and technical

factors creates the conditions for successful or
unsuccessful organizational performance.

Optimization. Optimization of each aspect

alone (social or technical) tends to increase
not only the quantity of unpredictable, un-
designed relationships, but those
relationships that are injurious to the systems
performance.
 Principles of Socio-technical Theory

Responsible autonomy. It refers to the attention to

internal supervision and leadership at the level of the
group or team to design an organization possessing
the characteristics of small groups whilst preventing
the silo-thinking , stovepipe or neologisms of
contemporary management theory. It keeps loyalties,
makes groups responsible to their own internal
regulations and supervision and removes more
traditional command hierarchies.
 Principles of Socio-technical Theory

Adaptability. It is making simple

organization and complex jobs to fit
organization with external complexity. It
requires enlargement of staff function and
vertical information system.

Meaningfulness of tasks. It refers to make

each task to each participant significant and
dynamic that requires to deploy multiplicity
of skills and to have autonomy to decide
when and how to do tasks.
 Principles of Socio-technical Theory
Whole tasks. A whole task refers to placing
responsibility for task squarely on the single
small closely interacting group which
experiences the entire cycle of operations
within the compass of membership. It
embodies the notion of critical specification of
task that allows the small group to decide on
local conditions that how best to undertake
the task in a flexible adaptive manner.
 Participative Management
Participative Management refers to as an open
form of management where employees are actively
involved in organizations decision making process.
Participative management is a technique of decision
making that allows all managers and workers to
take part in the decision making process.
The concept is applied by the managers who
understand the importance of human intellect and
seek a strong relationship with their employees.
 Participative Management
The employees are the facilitators who deal directly
with the customers and satisfy their needs.
To beat the competition in market and to stay ahead
of the competition, this form of management has
been adopted by many organizations.
Managers welcome the innovative ideas, concepts
and thoughts from the employees and involve them
in decision making process
 Participative Management
Workers are represented with a person
elected or nominated by them.
 Requisites of Participative Management

1. Willingness of managers to relinquish some

control to their workers.
2. Cultural change Ideas and styles of working
of managers and employees.
3. Receptive and open mindset of managers -
They must be open to new ideas and
innovations.
4. Careful planning and a slow phased approach.
 Requisites of Participative Management

5. Employees willingness to participate

and share their ideas. Participative
management does not work with employees
who are passive or simply do not care.
6. Encouragement :One way to help employees
engage in the decision-making process is by knowing
their individual strengths and capitalizing on them.
By guiding employees toward areas in which they are
knowledgeable, a manager can help to ensure their
success.
 Requisites of Participative Management

7. Benchmarks for making inputs to

various groups. so that discussions are held at
levels that are consequential and the solutions are
feasible economically.
Managers should provide them with the criteria that
their input must meet. This will aid in discarding ideas
or suggestions that cannot be implemented, are not
feasible, or are too expensive.
Managers should also give employees time to think
about ideas or alternative decisions.
Employees often do not do their most creative thinking
on the spot.
 Requisites of Participative Management

8.Visible integration of employees'

suggestions into the final decision or
implementation. Employees need to know
that they have made a contribution. Offering
employees a choice in the final decision is
important because it increases their
commitment, motivation, and job
satisfaction.
 Four processes of Participation
Management
Information sharing : which is concerned with keeping
employees informed about the status of the company.
Training : raising the skill levels of employees and offering
opportunities that allow them to apply new skills to make
effective decisions regarding the organization as a whole.
Employee decision making, which can take many forms, from
determining work schedules to deciding on budgets or
processes.
Rewards, which should be tied to suggestions and ideas as well
as performance.
Meeting Structure

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Meeting Srtucture
What will a manager do to make participative
management effective?
Diagnose the decision situation
Evaluate how important the decision is.
Identify people with relevant knowledge/expertise.
Evaluate likely cooperation by participants.
Evaluate likely acceptance without participation.
Evaluate whether it is feasible to hold a meeting.
What will a manager do to make participative
management effective?

Choose the participants and

representatives from the workers.

Clearly define objectives and

communicate to the members.

Train them.
 Continues
Encourage participants . How ?
Inspire people to express their concern.
Record ideas and suggestions.
Be tactful in expressing concerns about a
suggestions . Example :
Negative concern : You arent serious about that?
That has been tried before and it doesnt work.
Positive concern: Your suggestion is a promising
one, but we are concerned about cost. Is there any
way to keep it under budget?
 Continues
Listen to disseminating views without betting
defensive.
Utilize suggestions and deal with concerns.
Show appreciation on for suggestions.

Record all ideas accepted and

exhibit those in program and
implementation.
 Decision Options

Consensus
Democratic ( Majority)
 Danger
Managers often view it as the ends and
not as a tool.
There is confusion if whether
participative management means
democratization.
Managers sometimes manipulate the
process for their own advantage
 Consultative Management
This management technique prescribes that
manager will discuss matters with the
subordinates and concerned parties but
decision will be taken by him/herself.
The discussion is made to have a full picture view of
a situation.
This will make the decision effective as all involved
issues are taken into consideration to decide on the
problem.
 Empowerment Management
Empowerment management is a technique to
make subordinates capable to take decision
independently.
It is also called psychological empowerment.
 Definition of Empowerment
Psychological empowerment describes how
the intrinsic motivation and self efficacy of
people are influenced by leadership
behaviour, job characteristics, organization
structure, and their own needs and values so
that they can be oriented to assume
responsibility exercise authority judicously
and to take decision independently.
 Definition of Empowerment
That is , empowerment is to create in
employees an empowered state of mind in
which they feel-
More personal control over how to perform a
job.
More awareness of the business and strategic
context in which the job is performed.
More accountability for performance
outcomes .
 What are to be given?

Power
Information
Knowledge
Reward
 Degree of Empowerment : Three
Levels
Degree of empowerment
Enabling employees to take more
and bigger decisions without having
to refer someone more senior.

Involving employees in taking

responsibility for improving the
way that things are done

Encouraging
Employees to play a more active role
in their jobs
Organizational benefits
 Guidelines for Empowerment
Involve people in decision making.
Delegate responsibility and authority.
Provide access to information.
Provide resources on time.
Change management system to help
empowering.
Remove all bureaucratic barriers and
unnecessary control.
 Guidelines for Empowerment
Express confidence and trust in people.
Provide coaching and advice when requested.
Encourage and support initiative and problem
solving.
Recognize important contributions and
achievements .
Ensure rewards are earned.
Ensure accountability for the ethical use of
power.
 Empowerment Programs
Leader selection and assessment.
Democratic decision procedure
Shared leadership responsibilities.
Information sharing.
 Results
Stronger task commitment.
Greater initiative in carrying our role
responsibilities.
Greater persistence in the facer o obstacles
and temporary setbacks.
More innovation and learning and stronger
optimism for success.
 Results
Higher job satisfaction
Stronger organizational commitment.
Less turnover.
 Conditions favourable for empowerment
Organizational variables
Organisational structure
Competitive strategy
Task design and technology
Duration of relation with customer/client
Dominant cultural values in the
organisation
Employee traits
Employee tenure
Favourable conditions
Very decentralized, Low formalization.
Customized, highly differentiated
product/service
Complex, non-routine task , unreliable
technology
Repeated interaction, Continuing
relationship
Flexible, learning, and participation.
High need for achievement, internal locus
of control, and emotional stability
Regular, continuing employee
 Conditions favourable for empowerment

Organisational variables Conditions Favourable

Employee tenure Regular, continuing employee.

Employee ability Highly skilled ,professional

Employee ownership and rewards for Shareholders or co-workers

success

Employee involvement programs Extensive programs strongly supported

by top management

Mutual trust High