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Reference Text: Essentials of Management aglobal perspective Wiehrich & Koontz(7th Edn; Tata Mcgraw Hill)
Course Facilitator: Bijoy S Guha
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About the facilitatorAbout the facilitator JoinedJoined Philips IndiaPhilips India as a Management Traineeas a Management Trainee (1969)(1969)
After O-J-T of 18 months, became aAfter O-J-T of 18 months, became a SectionSection In-charge in a factoryIn-charge in a factory 18 months later, become18 months later, become ShopShop
In-chargeIn-charge
24 months later, took over as I/C Engineering &24 months later, took over as I/C Engineering & Customer SupportCustomer Sup
port 18 months later,18 months later, ProjectProj
ect 22ndnd I/C for new FactoryI/C for new Factory
18 months later, Manager18 months later, ManagerQualityQuality
ControlControl
42months later, Manager42months later, ManagerInnovationInnovation GroupGroup 42 months later seconded to Philips42 months later seconded to Philips GermanyGermany
24 months later returned as24 months later returned as FactoryFactory
Manager, Luminaire Centre/CalcuttaManager, Luminaire Centre/Calcutta
36 months later took over as36 months later took over as PlantPlant Manager, Kalwa Lamp Factories/Manager, Kalwa Lamp Factories/Thane the largest Philips Production complex first Indian ManagerThane the largest Philips Production complex first Indian Manager
54 months later took over as54 months later took over as SBUSBU head- Professional Lighting/Indiahead- Professional Lighting/India 36 months later took over as Head,36 months later took over as Head, CorporateCorp
orate Purchasing/India for 12Purchasing/India for 12months;months;
Started (1998) up aStarted (1998) up ajoint-venture
joint-venture between Tata AutoComp & Yazakibetween Tata AutoComp & YazakiCorp/Corp/JapanJap
an for Auto EDCS (for Auto EDCS (C.E.O,C.E.O,
Tata-YazakiTata-Yazaki) and steered it for 60
) and steered it for 60
months;months; Retired from Tata-Yazaki to start a second career as a Teacher.Retired from Tata-Yazaki to start a second career as a Teacher.(2003)(2003)
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Lectures duration is 75 minutes gross i.e. 65~70Lectures duration is 75 minutes gross i.e. 65~70minutes netminutes net:: Please bePlease be on timeon time so as to maximize utilization; lateso as to maximize utilization; late
coming disturbs the lecture flow apart from it being acoming disturbs the lecture flow apart from it being aserious breach of management etiquette.serious breach of management etiquette.
Let us practice to be Managers!Let us practice to be Managers!
Lecturing will be for max. 60 minutes:Lecturing will be for max. 60 minutes: Only one person talks at a timeOnly
one person talks at a time lecturer or lecturer orquestioner/commenter/answerer!questioner/commenter/answerer!
The last 10 minutes are set aside for summarization/The last 10 minutes are set aside for summarization/discussion thesediscussion these being recorded for Internal Marksbeing
recorded for Internal Marks forfora continuous evaluation basis.a continuous evaluation basis.
Absentees/time-passers: Bad Luck!!Absentees/time-passers: Bad Luck!!
At the end of section (4/5 lectures),At the end of section (4/5 lectures),
discussion topicsdiscussion top
icswill be given in advancewill be g
iven in advance as home assignment, to beas home assignment, to beprepared for a class discussion:prepared for a class discussion: Individuals will be selected at random to answer/explainIndividuals will be selected at random to answer/explain
questionsquestions -- thesethese being recorded for Internal Marksbeing
recorded for Internal Marks , so, sobe keen to participate!be keen to participate!
You need to use all acquired knowledge to be a Manager.You need to use all acquired knowledge to be a Manager.
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Management: Definitions, Roles &Skills
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Get jobs done by others: Motivate/Lead/Direct/Coach/Guide etc. Sharing in a group to achieve objective Empower
Structured approach to get goal: 5 Ws & 1H
Rules, regulations, processes etc. Making Profits & growing
Meeting Budgets and Targets Increasing firms value Resource & cost controls
Innovate & compete for Business Planning Organizing Staffing Directing for
achieving results
Great!L
ets
Explo
re&
Expa
nd
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Management:Manag
ement: DefinitionsDefinitions
Management is theManagement is theprocess
process of designing andof designing andmaintaining anmaintaining an environmentenvironmentin which individuals,in which individuals,working together in groupsworking
together in groups, efficiently accomplish, efficiently accomplishselected aim(s)selected aim(
s) viz. to create a surplus(s). .viz. to create a surplus(s). .Weihrich & KoontzWeihrich & Koontz
Management is not an absolute; rather it is sociallyManagement is not an absolute; rather it is sociallyand culturally determined. Across all cultures and inand culturally determined. Across all cultures and inall societies, people coming together toall societies, people coming together toperform
performcertain collective actscertain collective acts encounter common problemsencounter common problemshaving to do with establishing direction, coordinationhaving to do with establishing direction, coordinationand motivation. Culture affects how these problemsand motivation. Culture affects how these problemsare perceived and resolved. are perceived and resolved. The Art of JapaneseThe Art of Japanese
Management by R. Pascale & A. AthosManagement by R. Pascale & A. Athos ..
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ManagementManagement: Definition: Definitionctd.
Applies to and through any kind of organization:
collective, cohesive and consistent human effort towards
accomplishing a common objective.
Applies to people at all levels
Concerned with Doing the right things right at all times:1. Effectiveness: Achievement of objectives (Right Things);
2. Efficiency: Achieving those objectives with least amount/
sacrifice of resources (Things Right);
3. Continuous Improvement: in creating increasing surplus(at all times);
Improve or die = survival of the fittest
what gets measured, gets managed and improved e.g.
Productivity=Output / Input ratio
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Management: Definition ctd.
ORGANIZATION
Economic
Political
Regulatory
Societal
Technological
Globalization
Doing right things right
is affected by forces
of environment:
For creating a surplus
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ManagementManagement: The Art & Science: The Art & Science Evolution of Management- structure/styles/controls:Evolution of Management- structure/styles/controls:
From agricultureFrom agriculture manufacturingmanufacturing servicesservices
Industrial Revolution & Factory SystemIndustrial Revolution & Factory System
Information Technology & societal maturityInformation Technology & societal maturity
LocalLocal NationalNational Multi/Trans NationalMulti/Trans National GlobalGlobal
Breaking-down of barriers: Global VillageBreaking-down of barriers: Global Village
From inside-out to outside-inFrom inside-out to outside-in
Impact of speed: 24x7 mindsetImpact of speed: 24x7 mindset
Contribution of Dominant Personalities (20Contribution of Dominant Personalities (20thth Century):Century): F.W.TaylorF.W.Taylor& the scientists& the scientists (20s)(20s)
Fayol/Peter DruckerFayol/Peter Drucker& the rationalists& the rationalists (40s)(40s)
Demming/Juran/FigenbaumDemming/Juran/Figenbaum & the quality crusaders& the quality crusaders (60s)(60s) HofsteedHofsteedand the culture cluband the culture club (70s)(70s)
Tom PetersTom Peters & the excellence (& the excellence (soft is hard )soft is hard ) brigade brigade (80s)(80s)
Michael PorterMichael Porter& the value drivers& the value drivers (80s)(80s)
Prahalad/ReisPrahalad/Reis & the focus specialists& the focus specialists (90s)(90s)
HammerHammer& the change and reengineer dynamos& the change and reengineer dynamos (00s(00s))
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Management Approach, Roles & Skills:Management Approach, Roles & Skills:
Fredrick TaylorsFredrick Taylors path-breaking path-breaking scientific approachscientific approach
Henri FayolsHenri Fayols classical definition ofclassical definition offunctionsfunctions, and, and
process:process: PlanPlan OrganizeOrganize Lead(Lead(Command&CoordinateCommand&Coordinate)) ControlControl
MintzbergsMintzbergs
map of managerialmap of managerial
rolesroles
::
Interpersonal + Informational + DecisionalInterpersonal + Informational + Decisional
KatzsKatzs interpretation ofinterpretation ofskillsskills:: Technical / Human / ConceptualTechnical / Human / Conceptual
Human get things done through others:Human get things done through others: Leadership: The ability to influence a group towardsLeadership: The ability to influence a group towardsachievement of goalsachievement of goals (works of(works ofFielder, BlanchardFielder, Blanchard et al)et al)
Motivation: The willingness to exert high level of effort towardsMotivation: The willingness to exert high level of effort towards
goalsgoals (works of(works ofMaslow, Herzberg, MayoMaslow, Herzberg, Mayo et al)et al)
Communication:The transference and understanding ofCommunication:The transference and understanding ofmeaningmeaning
ManagementManagement: The Art & Science: The Art & Sciencectdctd
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Managerial Roles (Mintzberg)
Role Description ExamplesInterpersonalFigurehead symbolic head; required to show Ceremonial,
face in social & legal conditions. Civic etc.Leader Motivating & directing subordinates project plan
Liaison Networking outside for information Industry -& favours group meets
InformationalMonitor nerve centre and interpretator ReportsDisseminator networking within the organization Meetings etc.Spokesperson Transmit intent to outsiders; expert Board Meets
DecisionalEntrepreneur Opportunity finding& reacting Strategy PlanTrouble shooter Handling unexpected disturbance ContingencyResource allocator Initiating/approving changes Budgeting
Negotiator Getting best deal for Organization Contracts
ManagementManagement: The Art & Science: The Art & Science ctdctd
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Managerial Skills(Managerial Skills(Katz & others)Katz & others)
Technical SkillsTechnical Skills::
Application of specializedApplication of specialized
knowledge or expertiseknowledge or expertise
acquired though formalacquired though formal
training & its use.training & its use.
Human Skills:Human Skills:
Ability to work with people,Ability to work with people,
understand and motivateunderstand and motivate
groups & individuals.groups & individuals. Conceptual Skills:Conceptual Skills:
Mental ability to recognize,Mental ability to recognize,
analyze, diagnose and thinkanalyze, diagnose and think
through complex situations.through complex situations.
Skills NeededSkills Needed
Board
Exec.
Mgr.
Supr.
HUMAN
Concep
tual
Technical
ManagementManagement: The Art & Science: The Art & Science ctdctd
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ManagementManagement: The Art & Science: The Art & Science ctdctd
Different Doors to Management
Cooperative Social Systems
Group/InterpersonalBehaviour
7-S Framework
Total Quality Managemen
Applied SystemsTheory
Socio-technicalTheory
Reengineering
Contingency/Situational Theory
Rational choice/Decision Theory
Mathematical Modeling
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Evolution of ManagementEvolution of Management
Management, as a concept as we know it today, isManagement, as a concept as we know it today, isassociated with mass consumption leading toassociated with mass consumption leading to
production of standardized goods in large volumes;production of standardized goods in large volumes;
Prior to the Industrial Revolution, man madePrior to the Industrial Revolution, man made
devices were in use in sizeable numbers but oftendevices were in use in sizeable numbers but often
one of a kind and crafted rather than manufacturedone of a kind and crafted rather than manufactured
e.g watches and clocks. However, many of thee.g watches and clocks. However, many of the
supportive processes can be traced to early roots:supportive processes can be traced to early roots:logistics, scheduling e.g. boat building; automationlogistics, scheduling e.g. boat building; automation
(use of m/cs) e.g. printing;(use of m/cs) e.g. printing;
The advent of the management as a science canThe advent of the management as a science can
therefore be traced to late 18therefore be traced to late 18thth /early 19/early 19thth century.century.
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Elements of modern management, with a focus on man i.e.HR concepts first began to appear in the West around the sametime:
as a reaction to the harsh behaviourof autocratic businessmenlike Henry Ford. It evolved through (labour) Welfare, IndustrialRelations, Personnel Management to its current form. (Marxismwas becoming a recognizable philosophy in Europe!); as a need to utilize human resource betterdue the adversesupply-demand situation. Employment in the industry hadovertaken agricultural labour. This was aggravated in Europe, byWW I.
In the 20s, Rationalization & Efficiencywere the buzz-words (Taylor, Fayol etc.), calling for a scientific approach to
selection and work allocation the corner-stones of modernproduction management:
Standardization of parts and work elements resulted in ability
to make work repetitive for individuals (do-ers)
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End of WW II brought in an era of un-sated demand, resulting in a
boom for production activity more of everything was required.Quantity backed by efficiencywere the guiding principles: an era ofOptimization driven by suppliers choice rather than customerswants. However, some people notably Japan restarted their devastated
economy with different orientation: Quality. The key was trueeconomy of all resources with the customer as the focal point sincethey did not have the luxury of a surplus funded, hungry market.
By the late 60s, demand tended to slow down and the growing
competition gave customers greater choice quality as an important
buying criterion emerged. OPEC crisis in mid-70s turned the world around on its head! Energy
the prime mover of industrial world became very expensive. The
demand boom faded with customers demanding quality and lower
prices and better service.
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First inventions of mass production were linked to textileFirst inventions of mass production were linked to textile
manufacturing (Spinning Jenny/ Hargreaves) which combined withmanufacturing (Spinning Jenny/ Hargreaves) which combined withuse of water power (Arkwright), made a powerful social impact in theuse of water power (Arkwright), made a powerful social impact in thelate 1700s; Watts steam engine completely revolutionizedlate 1700s; Watts steam engine completely revolutionizedharnessing of mechanical powerharnessing of mechanical powerfor production (first to use werefor production (first to use werecotton mills) and transport;cotton mills) and transport;
Poor Reliability of early machines led to the creation of machinePoor Reliability of early machines led to the creation of machinetools the Lathe (Maudslay) in 1790, with which to turnouttools the Lathe (Maudslay) in 1790, with which to turnout parts toparts tocloser tolerances and fit. This led to creation ofcloser tolerances and fit. This led to creation ofinterchangeableinterchangeablepartsparts and the first uses were in manufacture of muskets and and the first uses were in manufacture of muskets andpistols!pistols!
These were theThese were the triggers fortriggers formass productionmass production:: mechanicalmechanicalpower &power &interchangeable partsinterchangeable parts; leading to production moving away from; leading to production moving away fromhomes and craft-shops to work-shopshomes and craft-shops to work-shops//factories.factories.
By 1900 (in the West),By 1900 (in the West), nearlynearly everything was being produced by theeverything was being produced by the
factory system.factory system.
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Division of Labour: under this principle, work could beorganized/grouped into a set of specific, related tasks which wererepetitive in nature. Man could be trained to perform this set of tasksonly, so that efficiencyof task performance was maximized.
When extended throughout the organization, this took the formofSpecialization - with the organization benefiting from themaximum use of specialist skills. Both economically and undersupply-shortage conditions, this worked well. Much of this was an extension of trade/craft skill-groupsorganization (guilds) which was the hallmark of pre-industrialproduction.
Till the end of the 30s, these fundamentals were refined,polished(e.g. Organization structures) and extended ( e.g. work-measurements) in a relentless focus on efficiency.
With WW II, a furtherneed for reliabilitygave birth to theprinciples of sampling & inspection statistical methods were
introduced to regulate quality of output.
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Evolution of Management ctdEvolution of Management ctd This brought to the forefront the philosophy and practice ofTotal Qualityas the guiding force for manufacturing later tospread into management of operations and enterprises:
Central to this theme is the dominance of the Customer;Customers were any person or person receiving goods and/orservices internal or external; Quality was redefined as fitness for use elevated from the
narrow confines of conformance to specifications;Continuous improvementwas the key to continuity andsuccess against demands of customer and competition;importantly, everybody could contribute quality is every- bodysbusiness;
Particularly, for production, quality means best products at leastcost reduced waste of all resources, spawning a host of(linked) programs to conserve time, money & effort:
Just in Time, SMED/OTED; Lean manufacturing; Q-circles/Kaizen/6-sigma;
5-S, TPM, DoE;
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Management: A SystemsApproach
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Systems approach to Management
Organization as a System receives Input, transforms it
through a Process for Output and operates in an
Environment (economic, regulatory and other forces)
Transformation
process
input output
Feedback (Reenergizing the system)
ENVIRONMENT
System Boundary
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Systems approach to ManagementSystems approach to Management ctd.ctd.
Systems ConceptsSystem Boundaries and Subsystems
> Systems often consist of numerous
subsystems.
> Each subsystem has elements, interactions
with other subsystems, and objectives.
> Subsystems perform specialized tasks for
the overall system.
Sub-System 2e.g. Production
Sub-System 3
e.g. SalesSub-System 1e.g. Purchasing
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Systems approach to ManagementSystems approach to Management ctd.ctd.Outputs and Inputs
Systems produce Outputs from Inputs i.e. theInputs are converted to Outputs.
Outputs of one subsystem become inputs toanother subsystem.
Outputs must adhere to standards to be usefulor acceptable to the next subsystem.
System Environment Environment consists of people, organizations
and other systems that supply data to or that
receive data from the system
Managers at different levels perceive
Environment differently
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Systems approach to ManagementSystems approach to Management ctd.ctd.Inputs: 5 Ms of ManagementInputs: 5 Ms of Management
Inputs or the resources managers deal with are:Inputs or the resources managers deal with are:ManMan: human resources, both inside and connected with an: human resources, both inside and connected with an
organization;organization;
Materials:Materials: goods (hard & software, processed or semi-goods (hard & software, processed or semi-finished) and services required to create the sellable endfinished) and services required to create the sellable end
product;product;Machines:Machines: technology and expertise deployed towards thetechnology and expertise deployed towards the
transformation process;transformation process;
Methods:Methods: systems, procedures and processes seamlesslysystems, procedures and processes seamlesslyput together for the transformation;put together for the transformation;
Measurement:Measurement: score-keeping and in-process monitoringscore-keeping and in-process monitoringcontinuously with due feedback to keep on-course on time.continuously with due feedback to keep on-course on time.
MoneyMoneyis required for generating all theses Ms is required for generating all theses Ms managers need to acquire, deploy, generate andmanagers need to acquire, deploy, generate anddistribute money as a primary need for business!distribute money as a primary need for business!
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Systems approach to ManagementSystems approach to Management ctd.ctd.
StakeStake: Something wagered or risked; an interest in an: Something wagered or risked; an interest in anenterprise with contingent gain or loss enterprise with contingent gain or loss Webster s dictionaryWebster s dictionary
HoldersHolders who have stake in Business: who have stake in Business: Shareholders:Shareholders: are the owners. They have put in their money inare the owners. They have put in their money in
the enterprise, expecting better returns from it than from otherthe enterprise, expecting better returns from it than from otherventures;ventures;
Society:Society:includes the State, provincial and local governmentsincludes the State, provincial and local governmentsfor the improvement of quality of life of its citizens;for the improvement of quality of life of its citizens;
Suppliers:Suppliers: continuity of their enterprise depends on thecontinuity of their enterprise depends on the
success of the customer enterprise;success of the customer enterprise; Customers:Customers: require the goods and services provided by therequire the goods and services provided by the
enterprise, better than those from its competitors. Theenterprise, better than those from its competitors. Theenterprise is, in turn, a supplier to its customers;enterprise is, in turn, a supplier to its customers;
Employees:Employees: livelihood depends on the health, progress andlivelihood depends on the health, progress and
success of the employing enterprise;success of the employing enterprise;
Output: for Stake-holders in Business
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Systems approach to ManagementSystems approach to Management ctd.ctd.
There is a freedom of choice (for association)There is a freedom of choice (for association)between each of these stake-holders and thebetween each of these stake-holders and theenterprise in the longer term:enterprise in the longer term: But they sink or swim together in the shorter termBut they sink or swim together in the shorter term
Length of term definition varies with individuals!Length of term definition varies with individuals! They have varied interests in terms of specificThey have varied interests in terms of specific
outcomes,outcomes, e.g. Society in Ethics & Environmente.g. Society in Ethics & Environment, and, andoften prioritize differently even divergently,often prioritize differently even divergently, e.g.e.g.
Shareholder on higher Profit & Employees on higher Wages.Shareholder on higher Profit & Employees on higher Wages. Managers need to balance different interests,Managers need to balance different interests,
harmonizing the Business Processes towardsharmonizing the Business Processes towardssustainability i.e. shareholders & customersustainability i.e. shareholders & customer
satisfaction.satisfaction.
Output for Stake-holders in Business ctd.
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Systems approach to ManagementSystems approach to Management ctd.ctd.
Transformation/Business process
A business process orbusiness methodis a collection of related,structured and sequenced activities ortasks that produce a
specific service or product (serve a particular goal) for a
particular customer or customers. It often can be visualized with
a flowchart (of activities) repeated over time for same outcome.
There are three types of business processes:
> Management processes, that govern the operation of a
system. Typical management processes are "
Corporate Governance" & "Strategic Management".
> Operational processes: constitute the core business andcreate the primary value stream. Typical operational processes
are Purchasing, Manufacturing, Marketing, and Sales.
> Supporting processes, which support the core processes.
E.g. Accounting, Recruitment, Technical support.
http://en.wikipedia.org/wiki/Taskshttp://en.wikipedia.org/wiki/Flowcharthttp://en.wikipedia.org/wiki/Corporate_Governancehttp://en.wikipedia.org/wiki/Strategic_Managementhttp://en.wikipedia.org/wiki/Core_businesshttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Core_businesshttp://en.wikipedia.org/wiki/Strategic_Managementhttp://en.wikipedia.org/wiki/Corporate_Governancehttp://en.wikipedia.org/wiki/Flowcharthttp://en.wikipedia.org/wiki/Tasks8/8/2019 36707784 Principles of Mgt Jun09 Edn1
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Planning (What, where & when to do?)
+ Organizing (How to do?)
+ Staffing (who to do?)
+ Leading (same direction?)
+ Controlling (OK?)
to accomplish certain pre-determined,(asderived from stakeholder needs)goals &
objectives i.e. outcomes
Systems approach to ManagementSystems approach to Management ctd.ctd.
Management as a system transforms inputs as a
whole & in each type of Business Process by:
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Inputs(Goal
Oriented)
Outputs(External
ToOrgnzn.)
Planning
Organizing
Staffing
Leading
Controlling
Product/Services,Profits, Customer &
Societal satisfaction,
Other Long-term Goals
Man, Machine
Material,
Methods,
Measurement
Stake holder Feedback (reenergizing the system)
EXTERNAL ENVIRONMENT(Opportunities,Constraints)
Stakeholders
Shareholders;Society; Customers;
Employees; Suppliers
Systems approach to ManagementSystems approach to Management ctd.ctd.
Mgt
Core
Sup
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Management ProcessFirst Step: Planning
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Planning involves selectingPlanning involves selectingobjectivesobjectives or goals and defining theor goals and defining the
course of actionscourse of actions to achieve them:to achieve them:
Provides theProvides the road-maproad-map to take us fromto take us fromwhere we are to where we want to go;where we are to where we want to go;
Is aIs a rational approachrational approach to achieving pre-to achieving pre-
selected objectives - based onselected objectives - based on
innovation, knowledge and purpose;innovation, knowledge and purpose; Decision makingDecision making in choosing the bestin choosing the best
from alternative courses of action isfrom alternative courses of action is
integral to planning;integral to planning;
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Planningrequires asking& answering:
Quo Vadis?
Seeing & living the future but
not fortune telling!Dreams backed by clear actions toachieve them (Ws & Hs) People must know what they are
expected to accomplish, to make the
group effort effective. without a plan any road leads you to
nowhere! Finally, the plan serves as the basis
for control.
What kind ofresourcesneeded?
?
What kind of people
& org. structureto have?
?
How & Who to leadthemto reachplanned goals?
?
How & when tocontrol incase ofDeviation from plan
?
Pl f d ti f M tPl f d ti f M
t
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Top level
Managers
Middle level
Managers
Supervisors
Planning
Organiz
ing
Leadin
g
Controlling
Time spent in Managerial functions
at different levels of organization
Directional;Strategic
Operational
;
Tactical
Short-term;
Routine
Plans as foundation of ManagementPlans as foundation of Managementctd
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Mission / PurposeThe basic function or reason for existence
of an enterprise/ organization
Case in point:Case in point: MissionMission of Indiraof Indira
InstituteInstitute
To train our students to become the bestTo train our students to become the best
business minds and entrepreneurs today,business minds and entrepreneurs today,who will lead their companies successfullywho will lead their companies successfully
into the future tomorrow , locally, nationallyinto the future tomorrow , locally, nationally
and globally.and globally.
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Objectives/ GoalsThe end towards which activity of an
organization is aimed, e.g.For a Business enterprise profit, surplus creation;For a Management Institute: The number of
employable/useful trainees;Strategies
Determination of the long term objectives andadoption of a course of action
Gives a frame work for linked action-plans,communicated systematically to guidethinking and actions.
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Business Policies Plans that are general directional statements (or
understandings) that guide/help in decision making:
Repeat decisions taken reflexively;Delegation of tasks without loss of control.
Some discretion is permissible depending oncircumstances thus encouraging initiative withinlimits and situational adjustments;
Issues with Policy
Seldom documented in writing
Subject to interpretations
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Procedures Plans that are chronological sequences of
required actions: task-oriented in nature; Cuts across department boundaries (sub-
systems) in an organization: e.g. customercomplaint handling procedure;
Procedures and policies are inter related:e.g. authorization for paid leave Policy governs quota, responsible authority etc.Procedure governs application, grant and record-
keeping.
Rules Specific actions or non-actions allowing no
discretionCaution: rules (and procedures too) limit initiative!
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Programs Action plans (mainly non-routine or for
changed activities) including, taskassignments, steps to be taken, resources tobe deployed etc. to achieve a (new/renewed)goal;Primary program may require supporting programs,spreading across the enterprise;Perfect coordination between supporting & primary
programs essential to avoid delays, unnecessary
costs and expected roll-out. Programs can be a complex of (sub)goals,policies, rules and other elements necessaryfor the course of action e.g. obtaining ISOcertification.
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Budgets A statement of expected results expressed
in Numerical terms e.g. financialoperating budget = profit plan;
Budgets enforce precision in thinking:Making a budget is planning by itself;
Encourages innovation a different way towork
Budgets serve for Control:Enforces discipline in execution of plans;
Instills cost consciousness;
Makes people (constantly) plan!
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By Planning Period: Short range plans e.g. material procurement
plan in a factory
Long range plans e.g. product development
plan, plant/production facility installation;Urgent drives out the Important mismatch
between short & long term plans!
Planning horizon must allow for actions to runtheir course requiring commitments:Thus decisions today are key to good plans;
Long-term plans reap benefits of good short-termplans.
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Planning premisesInternal & externalEnvironment/conditions
Being aware ofchallenges
Market, Customerswants, Competition,Own strengths
& weakness
Setting Goals/Objectives
What to accomplish& when
Identifyingalternatives
FormulatingSupporting
plans
e.g., plan to buy material,recruit & train employees,
Comparing &
choosing analternative
Decision Making,Key SuccessFactors
Budgeting(Numberizing Plans)
e.g., Sales budget, OperationalExpense budget, Capital expenditure
Steps in PlanningSteps in Planning
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Mission
OverallObjectives &Key result areas.
Divisional objectives
Departmental objectives
Individual objectives
Board ofDirectors
CEO
DivisionHead
Product X
DivisionHead
Product Y
Sales & MktgDept
Production Dept
Sales Manager A Sales Manager B
Objectives set end results they need to be supported by a hierarchy ofObjectives set end results they need to be supported by a hierarchy of
sub-objectives, dulysub-objectives, duly networkednetworked through the organization tothrough the organization to avoid discordavoid discord andand
wasted effortwasted effort.. Management must ensure that the components of the networkManagement must ensure that the components of the network fitfit eacheach
other. This is the other. This is the Cascade PrincipleCascade Principle..
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Are areas in which performance is essential forthe success of an enterprise
Examples of generic KRAs: Market share
Return on Investment (ROI)
Service level Customer satisfaction
Peter Drucker recommends: Market standing,innovation, productivity, physical & financial
resource, profitability, managerial performance& development, worker performance & attitudeand public responsibility.
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Setting Goals/Objectives
What to accomplish& when
Planning premises
Identifyingalternatives
Comparing &choosing analternative
Decisionmaking
Strategic Planning/formulating ProcessStrategic Planning/formulating Process
trategytrategy= determination of the purpose / the basic long-teobjectives; the adoption of courses of action andallocation of resources required to achieve the ai
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Stakeholder
Wishes &Shareholderdemands
ManagementOrientation
EnterpriseProfile
Purpose &Major objectives
of enterprise
CurrentExternalsituation
Currentresourcesituation
ForecastExternalsituation
ExternalOpportunity& Threat
InternalStrengths &Weakness
Key success factors &Alternative Strategies
Strategicchoice
The Strategic Planning/formulating Process
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ctd.
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Porters Five Forces : anModel for analysis of the
External environment.
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Forecasting Techniques: Extrapolation
Time-series statistically project demandanalyzing historical data;
Causal method seek co-relation on cause andeffect basis between two (or more) variables to
quantify demand; Statistical modeling Brainstorming Expert opinion Scenario writing:
Coping with uncertainties Sensitivity analysis & What if scenarios (trustinstinct!);
Planning for contingencies with defined cut-inmilestones.
Un-quantifiable
factors e.g. national
pride
Quality of
assumptions
Excessive data
required (often
unobtainable) to make
accurate forecasts
Environmental
changes: Technology,
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The SWOT analysis & StrategyThe SWOT analysis & Strategy
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The SWOT analysis & StrategyThe SWOT analysis & Strategy
formulationformulation
W/T StrategyW/T Strategy(mini-mini)(mini-mini)
take cover fortake cover for
bothboth
weaknesses &weaknesses &threatsthreats
S/T StrategyS/T Strategy(maxi-mini)(maxi-mini)
using strengthsusing strengths
to avoid orto avoid or
overcomeovercomethreatsthreats
TThreatshreatse.g.e.g.
competition,competition,
new entrants,new entrants,
reduction ofreduction of
W/O StrategyW/O Strategy(mini-maxi)(mini-maxi)
overcomingovercoming
weakness toweakness to
leverageleverage
opportunityopportunity
S/O StrategyS/O Strategy(maxi-maxi)(maxi-maxi)
using strengthsusing strengths
to leverageto leverage
opportunitiesopportunities
OOpportunitiepportunitiess
e.g. economice.g. economic
upturns,upturns,
political/ socialpolitical/ socialchanges etc.changes etc.
WWeaknesseseaknesses
e.g. areas note.g. areas not
showing up inshowing up in
strengths boxstrengths box
SStrengthstrengths
e.g. strengthse.g. strengths
in R&D,in R&D,
knowledge,knowledge,
finance etc.finance etc.
InternalInternal
FactorsFactors
ExternalExternal
FactorsFactors
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ecision Making = is the core of the planning process; a pla
does not come into being unless a decision i.e. certaincommitments of resources, managerial time and moneyare made and risks are taken.aution: A Plan is not intentions and should not suffer fro
Analysis Paralysis.
Comparing &choosing analternative
Decision
making
Budgeting( Numberizing Plans)
Say, Sales budgetOperational Expense
budget,Capital expenditurebudget
FormulatingSupporting
plans
Say, plan to buyEquipment, recruit & train
Employees, develop productetc
Deployment (MBO etc.)
ann ng rem ses ra eg es
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Mission
OverallObjectives &Key result areas.
Divisional objectives
Departmental objectives
Individual objectives
Board ofDirectors
CEO
DivisionHead
Product X
DivisionHead
Product Y
Sales & MktgDept
Production Dept
Sales Manager A Sales Manager B
This is the This is the Cascade PrincipleCascade Principle, discussed earlier., discussed earlier.
While setting Objectives, ideally, Top Management should getWhile setting Objectives, ideally, Top Management should get
information / buy-in from lower levels to setinformation / buy-in from lower levels to set tough buttough but
achievable goalsachievable goals for a good result.for a good result.
Bottom-up
Response
ann ng rem ses ra eg es ctd.
Top-downApproach
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A comprehensive managerial system that integrates manykey managerial activities in a systematic manner and that is
consciously directed towards the effective and efficientachievement of organizations and individual objectives:
Set-out by Peter Druckerin 1954; integrated to personal
performance appraisal by Douglas McGregorin 1957;
Has formed the basis for many theories on motivation;
Has been criticized for introducing a short-term focus and
undesirable (individualistic) behaviour;
Currently viewed as a way of managing (deployment cascade)
not a specific tool.
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Decision making is a rational choice process,bounded by: Limitations: time, information and logic; Behaviour: Risk averseness and biases.
A key step in the process is to identify those limitingfactors, road-blocks to each effective (right thing)
alternative then finding a solution with leastsacrifice of resources (thing right): Factors: quantitative, qualitative/intangible; Nature: structured/unstructured Finding solutions:marginal analyses benefits with incremental inputs;cost-effectiveness assessment of benefits over costs;Intuitive/judgmental making connections that are not obvious
Decision Making ctdDecision Making ctd
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Top level
Managers
Middle level
Managers
Supervisors
Non-programmed
Decisions
Programmed
Decisions
Decision Makingctd.Decision Makingctd.Nature of decision making in Organizations
Non Programmed decisions: used for unstructured, novel and ill-
defined situations of non-recurring nature
Programmed decision:is applied to structured or routine problems;
very often recurring maybe under varying circumstances
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How to selectAmongst the
Alternatives ?
Experience: good teacher and useful when
routine/repeat situations arise under similarcircumstances. Without due analysis of theconditions, mistakes tend to repeat or a poorfit results.
Research & analysis: the approach is in at firs
understanding the problem (half the solution!then finding relations between various factorswhich hinder or foster goal attainment. This isstructured, analytical approach quantitative orotherwise.
Experimentation: arguably, the best techniquto use, particularly when either experience orrationale is lacking/limited. However is expensiand success/failures are magnified, results arsubject to interpretational errors.
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Decision making takes place under varyingdegrees of uncertain conditions and risks.
Techniques used to aid the process are: Risk analysis: every decision is based on
interactions amongst different factors/variables each of which have their own probabilities (towards
success). Analysis of these probabilities yield a riskprofile for each alternative path. In the absence ofdefined probabilities, estimates can be used.
Decision trees: the outcome (measure pre-decided
e.g. cost or time) of every step in the decision ischarted and a course selected on the mostfavourable outcome. Very much like making a trip,navigating by using a road-map (refer example in W &K, Management a global perspective/10th edn. Pg. 209)
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Flow Charts: as a process-guide to taking a decision andhelps as a check-list of key variables, the sequence inwhich they fall and the interrelations. Key to making achoice or re-examining the path taken are also indicatedas risk-reduction devices.(refer example in W & K, Management a global perspective/10th edn. Figure 8-5)
Decision Support Systems: a wide variety of(proprietary) computer based programs are available formanagers to use their time more effectively for decisionmaking of semi-structured tasks by providingalternative evaluations. They focus on the process ofdecision making, taking data provide by themanagement information systems in enterprises.
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Principles ofPrinciples of
Management 4Management 4Management Process:Management Process:
Organizing for resultsOrganizing for results
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Organizing may be broadly defined as:1.
The identification and classification ofrequired activities;
2. The grouping of those activities towardsattaining their set objectives;
3. The assignment of those groupings to a
responsible manager, duly empowered;4. The provision for coordination among, within
and across the groups in the organization. Organization structures are designed to: Clarify tasks & responsibilities, Remove obstacles, Furnish decision making & communication
network Support attainment of enterprise objectives
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The Business OrganizationModel: ValueChain (Porter,1985)
Margin
Margin
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
InboundLogistics
OperationsOutboundLogistics
Marketing& Sales
Service
Sup
portActivities
Primary Activities
argin reflects the reward for the risks run by the company.
All activities together need to generate value greater
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Inbound Logistics:relate to receiving, storingand disseminating inputs;
Operations:associated with transformation ofinputs into final product form;
Outbound Logistics:relate to collecting,storing and physically distributing theproducts to buyers;
Marketing & Sales:relate to advertising,Promotion, sales, distribution-channelselection & management and Pricing;
Service:associated with enhancement or
The Value Chain: Primary Activities
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Procurement: relates to the function ofpurchasing inputs used across the firmsprimary and support activities;
Technology Development: relates to know-how,processes & procedures, technologyembodied in the product design and delivery.Most activities have their own sub-set oftechnology;
Human Resource Management: directed atrecruiting, training, developing andcompensating all personnel;
The Value Chain: Support Activities
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Most practicing mangers would translate thisvalue chain to imply an organization as:
a formalized, intentional structure of roles and
positions
Thus formal organization implies the intentional
structure of roles in an enterprise.
However, in an enterprise informal organization
will form, not necessarily bad and is: a network of personal and social relations not
established or required by formal organizations butarising spontaneously as people associate with eachother.
e.g. a Footballteam
e.g.
SeniorPlayers
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*
*
Hierarchical levels(6)
#
*
*
Span of Management(8)
Informal OrganizationOffice Golf team
Car Pool to/from work
*C
C C C
The building block of an organizais the Department: a group char
with independent task & responsi
Sales Gr1
NCR
Goan
Car Prod
Assembly
Test
Manuf.
G Fy
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Grouping activities & people into departments
makes it conceptually possible to expandorganizations to an infinite degree.
Different patterns have been successfully usedto group activities: By simple nos. is a simple method works well for
the lowest levels where work is routine, uniform andnon-specialized; time-grouping is an extension ofthis method where shift-working is required;
By enterprise functions embodies what enterprisestypically do e.g. Production, Engineering, Sales etc.
This method, defined by F.W.Taylor, is arguably themost prevalent method still used.
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By territory or geography is very common when thegeographical spread is wide. It was a device introduced tospeed up management in similar units for easy and swift
communication e.g. Sales: N/E/W/S; Fire Brigade: Camp,Hinjewadi, Aundh etc.
By Customer/Account orientation reflecting the primaryinterest in nature of markets/business/customer e.g. Banks:Institutional banking, Small Savings etc.
By Process groups encountered primarily in specialized/manufacturing operations where processes are vital e.g.Advertising: Copy-writing, Creative etc.; Manufacturing: SteelMelting, Wire-drawing etc.
By Product Lines has evolved with enterprises becoming
multi-line with function needing adaptation/integration tosuit specific products e.g. Tata Motors: Passenger Vehicles /Commercial vehicles
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By grid control in essence combining thefunctional and the product-line patterns to best
effect. Functional excellence is not subjugated toOperational ease. In projects,this serves to bring together the diversity of skillsrequired into one team.
The Strategic Business Unit: companies today areorganizing themselves as companies within acompanyto allow for maximum flexibility andfreedom of operations, especially when theproducts/businesses are unconnected e.g. General
Electric. Generally, SBUs have:Their own Missions, Goals and Strategies;Distinct and definable set of competitors;
Deploy and manage resources in key areas;
A reasonable size.
Departmentation ctdDepartmentation ctd.
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C.E.O
Finance Qual. HRM BU 1 BU 2
I.R.M
Recr.
T&D
G/H.R
Plant 1
G/H.R
Ind.
Sin.
I.S.O
Departmentation ctd.Departmentation ctd.Example of Grid Control & S.B.Us
Nature of Organizing ctd.Nature of Organizing ctd.
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The purpose of organizing is to make humanThe purpose of organizing is to make humancooperation effective and is limited by:cooperation effective and is limited by: the number of persons a manager can supervisethe number of persons a manager can supervise
effectively and efficiently;effectively and efficiently; while the total number is dictated by the quantum ofwhile the total number is dictated by the quantum of
work/ nature of task/spread etc. Thus the twowork/ nature of task/spread etc. Thus the twodimensions, Level (depth) and Span of controldimensions, Level (depth) and Span of control(width) are interrelated .(width) are interrelated .
The reason for creating Levels of organization is theThe reason for creating Levels of organization is thelimitation in the span of control. Effective span islimitation in the span of control. Effective span is
influenced by:influenced by: Training/skill of subordinates and personal contactTraining/skill of subordinates and personal contact
required;required; Clarity of delegation of authority;Clarity of delegation of authority; Clarity of plans, use of objective standards andClarity of plans, use of objective standards and
communication techniques;communication techniques;
g gg g
Span-of-ManagementSpan-of-Management
Span-of-Management ctdSpan-of-Management ctd
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Levels,Levels,per se,per se, are not desireable:are not desireable:
They are expensive as they increase, bothThey are expensive as they increase, bothinfrastructure costs and staffing tends to increase;infrastructure costs and staffing tends to increase;
Real work is accomplished at the gemba (Real work is accomplished at the gemba (Japanese:Japanese:
workplaceworkplace) where the actual value-) where the actual value-
addition/transformation takes place. The contribution ofaddition/transformation takes place. The contribution of
levels on top are not directly co- relatable, thus bestlevels on top are not directly co- relatable, thus best
avoided;avoided;
Communication become complicated omissions,Communication become complicated omissions,
filterations and misinterpretations lead to wasted andfilterations and misinterpretations lead to wasted and
misdirected effort;misdirected effort; Planning and control become tortuous, requiringPlanning and control become tortuous, requiring
complicated coordination and alignment between levels.complicated coordination and alignment between levels.
Studies reveal that between 8 to 10 people at higherStudies reveal that between 8 to 10 people at higher
levels and upto 15 at lower levels is a good span.levels and upto 15 at lower levels is a good span.
Span of Management ctd.Span of Management ctd.
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Principles ofPrinciples of
Management 5Management 5Management Process:Management Process:
StaffingStaffing
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Staffing seeks to: Put the Rightpeople in the RightJob at the Right
time
Further, the process needs to ensure that these
right people are retained and enabled to perform
And prepared for the right job since these change
with the operating environment.
i.e. management of Human Resources.
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The Michigan State Univ. Model: Looks at employees as a means to achieving
the organizations Strategy:
as a resource that is used in a calculative andmainly rational manner,
as a means towards competitive success;
What is H.R.M?What is H.R.M?
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What is HRM?What is HRM? (contd)(contd)
This hard model thus proposes that increasing
productivity and competitiveness is the
principal reason for H.R.M:
Therefore, a framework in which the needs of the
organization are paramount;
And Organizations exist to accomplish a mission or
achieve an objective, leading to 3 inter-connected
issues:
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The Michigan ModelThe Michigan Model (contd)(contd)
Mission & Strategy
Orgn. Structure HR Management
PoliticalForces
EconomicForces
CulturalForces
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The Michigan Model:The Michigan Model: Human ResourceHuman ResourceCycleCycle
Rewards
Development
Selection Performance Appraisal
HRM the OperatingHRM the Operating
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environmentenvironment
HR Strategy Recruitment Training Pay
Empl. Relations Flexibility etc.
HR Management
National Culture
Orgn: Size & Culture
Sector
CorporateStrategy
Behaviour
Performance
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A HRM Process ModelA HRM Process Model
Input Transformation Output
Feedback
Challenges Resources
Education
skills
Management Recruiting Selection Training & Dev.
Contributions Capable staff Motivated employees
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HRM S t S l tiHRM Systems Selection
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The process of choosing the right ones involves a seriesThe process of choosing the right ones involves a series
of steps with multiple evaluation points which adds timeof steps with multiple evaluation points which adds timeand complexity to the hiring process:and complexity to the hiring process:
Frustration among candidates/applicants,andFrustration among candidates/applicants,and
Among managers who need the job openings filled!Among managers who need the job openings filled!
But hiring is a long-term decision for the firm, whereas it isBut hiring is a long-term decision for the firm, whereas it is
at best a mid-term engagement for the applicant and theat best a mid-term engagement for the applicant and thehiring Manager.hiring Manager.
The step-wise progression in the selection process is :The step-wise progression in the selection process is :
HRM Systems: SelectionHRM Systems: Selection
# 6: Supervisory Interview
# 7: Realistic job preview
# 8:Hiring Decision
# 1: Reception of applications
# 2: Employment tests3: Selection Interviews
4: references & background checks
5: Medical Evaluation
HRM Systems: Development &HRM Systems: Development &
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EvaluationEvaluation
hen a new employee is hired or present employee isreassigned, orientation /placementshould follow;new job-holders need to be trained to do their presentobs & developed to handle future tasks/responsibilities.
he success of the individual and of the HR process/dept.depends on the feedback about performance; through aperformance appraisal, the employee evaluatesthe degreof success.
mployers offer career planningto further encourage thedevelopment of employees.
Development & Evaluation:Development & Evaluation:TT && DD
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pcontd.contd.
A usual step-by-step approach to preparing T&D is:
Needsassessment
T & DObjectives
Program
content
Learningprinciples
ActualProgram
Skills,Knowledge &
ability
Evaluation
Evaluationcriteria
Development & Evaluation: Performance
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pAppraisal
The basis for Appraisal must be job relatedThe basis for Appraisal must be job relatedstandards of performance; if performancestandards of performance; if performancestandards are not job related, evaluation can bestandards are not job related, evaluation can bebiased.biased.
The approach must:The approach must:
Identify performance related standards;Identify performance related standards; Measure those criteria;Measure those criteria;
Give feedback to the employeeGive feedback to the employee
Keep HR Dept. informed for follow-up.Keep HR Dept. informed for follow-up.
Performance Appraisal Feedback
MeasuresStandardsRecords
Interventions
HRM Systems: Compensation &HRM Systems: Compensation &
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Employees must beEmployees must be compensatedcompensatedfor theirfor their
efforts;efforts;
But this more thanBut this more than salariessalaries: it may include: it may includeincentives, benefits and servicesincentives, benefits and services as a totalas a total
package for financial and other security;package for financial and other security;
This forms the key concern of HRThis forms the key concern of HR
departments efforts to obtain, maintain anddepartments efforts to obtain, maintain and
retain an effective work force; the role thisretain an effective work force; the role this
plays inplays in employee (future & current) well-employee (future & current) well-
beingbeing..
y pProtectionProtection
Compensation & Protection:Compensation & Protection:contd.contd.
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The major phases of compensation management are:
Job-analysis
comprising Position description, Job description &job standards i.e. Identify and study jobs
Job-evaluation comprising Job ranking/job grading throughFactor comparisons or Point systems i.e. Defineinternal equity
Wages & salaries surveys Labour directorate, Employerassociations, Professional associations & (self) commissioned
surveys i.e. Establish external equity Pricing Jobs Match job evaluation worth with employment
market worth; i.e Match external and internal worth
Challenges affecting compensation are: Market forces forcing pay to be more than the relative worth;
Union interventions/interference;
Government constraints & legislation;
International wage/compensation rates: offshore challenge;
Productivity & cost constraints;
Social constraints.
pp
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Principles ofPrinciples of
Management 6Management 6Management Process:Management Process:
Controlling & LeadingControlling & Leading
ControllingControlling
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gg
Control Device
Controlled Entity
Detector: Information of
What is happening.
Effector: Behaviour
Alteration, if needed.
Assessor: Comparison
(With standard)
Detector: or a sensor that measures what is actually happening in the
Process being controlled.
Assessor: a device that determines the significance of what is actualsituation in comparison with some standard or expectation.
Effector: a device (often called feedback) that alters behaviour if the
Assesor indicates the need to do so.
+ a communication network that transmits information
Elements of Control
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Controlling cntd.Controlling cntd.
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Management controlManagement control hinges on the ability to influencehinges on the ability to influence
humanhuman bbehaviour towards achievement of the Strategicehaviour towards achievement of the StrategicObjectivObjective, i.e.e, i.e.
What actions do control initiatives motivate people to take in
their own self interest?
Are these actions in the best interest of the Organization?
Goal CongruenceGoal Congruence:: implies that actions people are led to takeimplies that actions people are led to take
in theirin theirperceived self-interestperceived self-interest are also in theare also in the interest of theinterest of the
firmfirm::
BothBoth FormalFormal andand InformalInformal processes influence human behaviourprocesses influence human behaviour
in organizations;in organizations;
Informal processesInformal processes need to be recognized since they areneed to be recognized since they are ill-ill-
defineddefined and are bothand are both intrinsic and extrinsicintrinsic and extrinsic to an Organization.to an Organization.
gg
Controlling cntd.Controlling cntd.
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gg
Organization
Structure
(Management)
Controls
Culture
H. R.
Management
St
ra
te
gy
Pe
rfo
rma
nc
e
Implementation Mechanism
Org. Structure specifies roles, reporting relationships, responsibilities that shape
decision making;
Culture refers to the set of common beliefs, attitudes that guide management actions
HR Management is related to activities which enable people to execute strategy;
Controlling cntd.Controlling cntd.
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gg
Policies & Rules:
Organograms, protocols and defined communication structure;
Written instructions/Code of Conduct/Manuals etc.;
ISO and allied systems down to task control level;
Physical controls e.g. Access cards, locked stores etc.
The Process:
Analysis/
ActionsOK?
NRevision
Y
Reward
StrategicPlanning
Goals &Strategies
OtherInfo.
BudgetingDepartmentPerformance
RulesTask ControlSafeguards
Reports:
A vs P
Measurement
Controlling cntd.Controlling cntd.
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Management control process is the process by
which managers at all levels ensure that peoplethey supervise implement their intended
strategies:Unlike the simpler systems, the
standard is not pre-set;Control is not automatic;Requires coordination amongst
individuals;The link between need for action and
determining the action is not always
clear;
Much of control is self control.
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Leadership: The ability to influence a group towards
the achievement of goal, objective or target. Not allLeaders are Managers and not all Managers are
Leaders !! Kotter: Management is about coping with complexity,
Leadership is about coping with change; Zalenznik: Managers adopt impersonal and passive
attitude to goals, Leaders take an active, personal
attitude towards goals. Trait theories seek to explain leadership in terms of
personality, social, physical and/or intellectual traits todifferentiate between leaders & others. Behavioral theories propose that specific behaviors
differentiate leaders from non-leaders.
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Contingency Model (Fiedler) effective group performance
depends on the proper match between leaders style ofinteraction with subordinates & the degree to which the
situation control and influence to the leader:concept of Task
& Relationship (position/power) orientation.Task Behavior: The extent to which leaders are likely to
organize and define the role of group members, to explain
5W+1H of assigned tasks characterized by well defined
structures, channels and way of working;
Relationship Behavior: The extent to which leaders are likely
to maintain personal relationships with group members,
opening up channels of communication, providing
psychological strokes and facilitating behaviors.
Hersey & Blanchards Situational Theory a contingency
theory, focusing on the followers readiness.
Hersey & Blanchards Situational Theory
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Delegating
Able& willing
Participating
Able & unwilling
Relation
ship
Behavio
r
Task Behavior
H
HL
Selling
Unable & willing
Telling
Unable & unwilling
Follower Readiness
Mature Immature
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Leading: Power & PoliticsLeading: Power & Politics
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Power: capacity of an individual (or group) to influence thebehavior of other(s), implying: a potential that need not be
cashed-in for effecting change & dependence as a basis ofrelationship. In organizations, there are 5 sources of power: Coercive Power that is based on fear;Reward compliance based on ability to distribute largess;Legitimate derived from (formal) hierarchical position;Expert influence based on special skills or knowledge;
Referent influenced by possession of desirable objects;Where does Power lie: Organo-grams do not always give the
implicit picture; where can be assessed as an answer to:How many people at the top have come from a dept./divn. etc?How well is the dept./divn represented in Key teams/committees?Salary/other quality level of Senior Mangers in the dept/divn?
Location, facilities and perquisites extended;Staffing strength/resource allocation, promotions extended;Symbolic perquisites to individuals: first among equals.
Leading: Power & Politics cntd.Leading: Power & Politics cntd.
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Power Tactics: is the way in which individuals translatepower bases into specific actions: Reason use of data to make logical/rational presentation;
Friendliness Use of emotions (flattery, humility etc.) in preparation;
Coalition getting or inducing group support to the issue;
Bargaining negotiating exchange of benefits and/or favors; Assertiveness forcing (demands, reminders, orders etc.) often
using rules and formal structures;
Higher authority gaining support before acting;
Sanctions use of organizationally derivedreward/punishment.
Leading: Power & Politics cntdLeading: Power & Politics cntd.
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Leading: Power & Politics cntd.Leading: Power & Politics cntd.
Politics = Power in action: Political behavior comprise thoseactivities that are not required as a part of ones formal role, but
influence the distribution of advantages/disadvantages within
organizations:
legitimate political behavior normal everyday influencing tactics
acceptable as routine to get work done; illegitimate political behavior in violation of the rules of the game:
e.g. whistle-blowing, sabotage, mass leaves etc.
Politics is a fact of life in any organizations. There will continue to be forces
for grabbing a share of the (limited) resource pie.