mgng people ppt

7/31/2019 Mgng People Ppt

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MANAGEMENT


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MANAGEMENT


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SCOPE OF MANAGEMENT


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SCOPE OF MANAGEMENT


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CHARACTERISTICS ofMANAGEMENT


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IMPORTANCE ofMANAGEMENT


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IMPORTANCE ofMANAGEMENT


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MANAGERIAL ROLES


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EVOLUTION OF MANAGEMENTTHOUGHT

CLASSICAL PERSPECTIVE:

BUREAUCRATIC ORGANISATIONS( Max Weber):

HIERARCHY

DIVISION OF WORK; specialised jobs

RULES & PROCEDURE

RECORDS

IMPERSONAL RELATIONSHIPS

ADMINISTRATIVE CLASS; beaurocrats


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EVOLUTION OF MANAGEMENT THOUGHT

SCIENTIFIC MANAGEMENT (Taylor):

Scientific task planning

Time & motion studies

Standardisation

Differential Piece rate

Functional Foremanship


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ADMINISTRATIVE THEORY (HENRY FAYOL):

Division of Work; Specialisation of labour& productivity

Authority; must accompanyresponsibility

Discipline; systemmatic functioning

Unity of Command; each subordinatehaving one Boss

Unity of Direction; all efforts focussed toOrgns Goal

Subordination of individual interests to

organisations interest


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ADMINISTRATIVE THEORY (HENRYFAYOL):

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


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NEO-CLASSICAL / HUMAN RELATIONSPERSPECTIVE:

Hawthorne experiments

Illumination Experiments

Financial Incentives Experiments

Conclusion:

Special Attention, feeling ofBelongingness & sympatheticSupervision are the motivatingfactors rather than physical workingconditions / financial incentives


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HUMAN RELATIONS AS A REFINEMENT

CLASSICAL THEORY

IMPERSONAL ORGNS

O.B. PRODUCT OF

RULES FOCUS IS ECO NEEDS

OF WORKERS

AUTHORITARIAN

PRACTICES RESULT: WORK

ALIENATIONDISSATISFACTION

NEO CLASSICALTHEORY

ORGNS A SOCIALSYSTEM

O.B. PRODUCT OFFEELINGS

FOCUS IS EMOTIONS

DEMOCRATICPRACTICES

RESULT: HAPPYEMPLOYEES &HIGHER

PRODUCTIVITY


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BEHAVIOURAL SCIENCES THEORY:

Elton Mayo, Abraham Maslow, DouglasMcgregor

People inherently love work

People are more self-driven & creativethan opportunities given

Create Positive Work Environment

Clearly defined Goals

Incentives designed to Improve Performance

Participative decisions

Conflicts confronted openly


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BEHAVIOURAL SCIENCES; AREFINEMENT

HUMAN RELATIONS

People want to Belong

Seek participation onRoutine matters

Subordinatesinvolvement will

increasebelongingness

BEHAVIOURALSCIENCES

People want to Belong& Contribute

Participation in Routineplus Important Matters

Subordinatesinvolvement will

increase productivity,quality of decisionmaking, self-direction& motivation


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QUANTITATIVE APPROACH:

Use of maths & stats for managerialdecision making

Criteria such as costs, revenues,returnon investment etc determine decisionmaking

Focus: Computer based MIS


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MODERN MANAGEMENT THOUGHT:

Mary Parker Follet

Constructive Conflict

Law of the Situation; Marketconditions

Group Ethics over Individualism

Authority & Responsibilty


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Peter Drucker:

MBO; Joint Goal Setting

Decentralisation; criticised functionalspecialisations & favoured selfcontained independent Productdivisions

Structure; reduction of Layers Executive Development


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MANAGEMENT IN THE NEW WORKPLACE(CHARACTERISTICS)

OLD WORK PLACE

RESOURCES:PHYSICAL ASSETS

WORK: STRUCTURED WORKERS: LOYAL

EMPLOYEES

NEW WORK PLACE

BITS; INFO, IDEAS

FLEXIBLE, VIRTUAL EMPOWERED

EMPLOYEES, FREEAGENTS, RESPOD TO

CHANGINGMARKETS,COMPETITION, SEIZEOPPORTUNITIES &

SOLVE RECURRINGPROBLEMS


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MANAGEMENT IN THE NEW WORKPLACE(CHARACTERISTICS)

OLD WORK PLACE

STRUCTURE: TALLHIERARCHY

DECISION MAKING:CENTRALISED

WORK: REAL

NEW WORK PLACE

FLAT

DECENTRALISED

VIRTUALTEAMS,FLEXI TIME

EX: IBM needs to staff aProject; Team raisedconsisting of suppliers,customers, interimManagers (skill; risk

takers, quick learners,


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MANAGEMENT IN THE NEW WORKPLACE(FORCES)

Old Work Place

TECHNOLOGY:MECHANICAL

WORKFORCE:HOMOGENEOUS

VALUES: STABILITY,EFFICIENCY

EVENTS; CALM,PREDICTABLE

New Work Place

DIGITAL, E-BUSINESS

DIVERSE(GLOBALISATION)

CHANGE, SPEED

TURBULENT,UNPREDICTABLE


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MANAGEMENT IN THE NEW WORKPLACE(MANAGEMENT COMPETENCIES)

OLD WORK PLACE

Leadership : autocratic

Focus: profits

Doing work: individuals

Relationships: conflicts

Design: efficiency inperformance

NEW WORK PLACE

EMPOWERING

CONNECT WITHCUSTOMERS,EMPLOYEES

TEAMS

COLLABORATION

BUILD LEARNING

ORGANISATION; VALUESEXPERIMENTATION,RISK TAKING,TECHNOLOGY &KNOWLEDGE SHARING

Ex:WIPRO;writessoftware, performs


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PLANNING & GOAL SETTING

GOAL- DEFINES PURPOSE OFEXISTENCE OF THEORGANISATION

PLAN- BLUEPRINT FORSPECIFYING RESOURCEALLOCATIONS,SCHEDULES, &TASKS

PURPOSE OF GOALS &


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PURPOSE OF GOALS &PLANS

LEGITIMACY: PURPOSE OFEXISTENCE

SOURCE OF MOTIVATION &

COMMITMENT:identification withCo, reduces uncertainty & clarifiesgoals for accomplishment

RESOURCEALLOCATION:employees,equipment, Capital

GUIDE TO ACTION:sense ofdirection


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PURPOSE OF GOALS &PLANS

STANDARDS FORPERFORMANCE:specifies desiredoutcomes & performance criteria


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SINGLE USE & STANDINGPLANS

SINGLE USE PROGRAMS:

PLANS TO ACHIEVEONE-TIME GOALS

LARGE IN SCOPEEX:BLDNG NEW HQ,

CONVERTING ALL PAPERFILES INTO DIGITAL

PROJECT: PLANS TO ACHIEVE

ONE-TIME GOALS

SMALLER IN SCOPE

EX:RENOVATINGOFFICE, SETTING UP

STANDING PLANS POLICY:

BROAD RULES,GENERAL GUIDES TO

ACTIONEX: SEXUAL

HARRASSMENT POLICY,EMAIL USAGE POLICY

PROCEDURE:

PRECISE STEPS TOATTAIN GOALS

EX:EMPLOYEE

GRIEVANCES, HANDLING


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STRATEGIC MANAGEMENT

SET OF DECISIONS USED TOFORMULATE STRATEGIES TOPROVIDE A FIT BETWEENORGANISATION & ITSENVIROMENT TO ACHIEVE

ORGANISATIONAL GOALS


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GRAND STRATEGY

GROWTH:

INTERNALLY: BY EXPANSION;NEWPRODUCTS, NEW MARKETS

EXTERNALLY:ACQUISITIONS RELATED TOCURENT BUSINESSES

EX: CITIBANK & TRAVELERS MERGE TO

FORM CITICORP


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GRAND STRATEGY

STABILITY:

AFTER RAPID GROWTH INTEGRATEBUSINESSES

RETRENCHMENT:

DECLINE IN DEMAND leads toFORCED LIQUIDATION OFBUSINESSES


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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


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SM PROCESS

EXTERNAL OPPORTUNITIES &THREATS:

COMPETITORS

CUSTOMERS

SUPPLIERS

LABOUR SUPPLY

TECHNOLOGICAL DEVELOPMENTS

POTICAL & INTERNATIONAL EVENTS

SOCIO CULTURAL CHANGES


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SM PROCESS

FORMULATE STRATEGY:

CORPORATE STRATEGY:BOSTONCONSULTING GROUP (BCG) MATRIX STAR; HIGH MKT SHARE, HIGH BUSN

GROWTH RATE

CASH COWS; HIGH MKT SHARE, LOWBUSN GROWTH RATE

Q MARKS; LOW MKT SHARE, HIGH BUSNGROWTH RATE

DOGS; LOW MKT SHARE, LOW BUSNGROWTH RATE


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SM PROCESS

MICHAEL PORTERS BUSINESSSTRATEGY:

DIFFERENTIATION

CREATIVE FLAIR

STRONG MARKETING CAPABILITIES

REWARDS EMPLOYEE INNOVATION

CORPORATE REPUTATION FOR QUALITY FLEXIBILTY IN OPERATIONS

STRONG CUSTOMER LOYALTY

EX: REEBOK, NIKE


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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


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SM PROCESS

FOCUS:

CONCENTRATES ON A NARROWTARGET MARKET

EX: LOW-COST AIRLINESJET LITEPLYING LIMITED ROUTES & STILLMAKING PROFITS


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SM PROCESS

STRATEGYIMPLEMENTATION:THROUGH

CHANGES IN LEADERSHIP

PERSUASION, MOTIVATION ORGANISATION STRUCTURE

ORGN CHARTS,DECENTRALISATION

INFO & CONTROL SYSTEMS REVISE REWARDS, BUDGET

ALLOCATIONS

HR

RECRUITMENT, LAYOFFS, TRANSFERS


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ORGANISING

ORGANISING:DEPLOYMENT OF ORGANISATIONAL

RESOURCES TO ACHIEVE STRATEGIC

GOALS

ORGANISATION STRUCTURE:

FRAMEWORK DEFINING HOW TASKSARE DIVIDED, HOW RESOURCES AREDEPLOYED & DEPARTMENTS

COORDINATED


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ORGANISING

WORK SPECIALISATION:

The degree to which organisationalTasks are subdivided into individualjobs; also called division of labour.

CHAIN OF COMMAND:

Unbroken line of authority whichlinks all individuals in the orgn. &specifies who reports to whom.


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ORGANISING

AUTHORITY:

Formal & legitimate Right of aManager to make decisions, issueorders & allocate resources.

RESPONSIBILITY:

Duty to perform the Task


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ORGANISING

ACCOUNTABILITY:

Mechanism which makes peoplewith Authority & Responsibilityanswerable to people in their Chainof Command

Delegation:

Process used to transfer Authority &Responsibilty to subordinates


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ORGANISING

Line Dept: which performs tasksrelated to the Primary Goal of theorgn. Ex;Production, Sales, Accounts

Staff Dept: which provides Advisoryservices

Centralisation: location of decision

making near top organisational levels

Decentralisation: location of decisionmaking near lower organisational

levels


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Functional Structure


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Divisional Structure


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MATRIX STRUCTURE

Combines both Functional &Structural features:

Functional hierarchy runs Vertically

(provides traditional control withindepts)

Divisional reporting exists Horizontally

(Provides coordination across depts)


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MATRIX STRUCTURE

LEADING FOR HIGH


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LEADING FOR HIGHPERFORMANCE

LEADERSHIP: the ability to influencepeople towards the attainment oforganisational goals

LEADERSHIP VS. MANAGEMENT:

MANAGEMENT: promotes stability,order, problem solving, within theorganisational structure & systems

LEADERSHIP: promotes vision,

creativity & change


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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


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TRANSACTIONALvs.TRANSFORMATIONAL LEADERSHIP

TRANSACTIONAL

Clarifies role & tasks ofsubordinates

Provides rewards

Tolerant & fair

Pride in smoothfunctioning oforganisation

Concern;impersonalaspects like plans,budgets

TRANSFORMATIONAL

Ability to inspire &motivate people toperform more thantheir capabilitiesthrough personalsacrifice

Obsessed by visionary

ideas to drive people

Lofty visions,communicate tofollowers & win trust

Ability to make the


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Example of Transformational Leaders:

Richard Kovacevich of WELLS FARGO(Financial Institution)

For selling motivated 1st line employees with slogan;Mindshare 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, 000employees.


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Effective Leader

COMBINETransactional + Transformational

Qualities


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THE LEVEL 5 LEADER

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