Lectures in MPP
Transcript of Lectures in MPP
Acharya Institute of Management & Sciences
EMPOWERING MINDSDepartment of Management Studies (MBA)
An Introduction to
Management Principles & PracticesBy
Indranil Mutsuddi
What is Management..
What is Management..
Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
An Ice Breaker…
Management as a Process….
• Manpower• Materials• Machines• Methods• Money• Markets
• Goods & Services desired by customers
INPUTS (the 6 Ms) OBJECTIVESManagement Functions
PLANNING DIRECTING
ORGANISINGCONTROLLINGSTAFFING
Nature of Management…
Utilization of Resources optimally & Economically Goal Oriented Distinct process Integrative Force Intangible force Multidisciplinary Result attained through others Universally applicable A System of Authority A Science or Art?
Management as a Science…
Management can be treated as a “Behavioral Science”- the principles and theories of which are “Situation bound/oriented” as their applicability does not necessarily lead to the same results every time.
Management as an Art….
Can be considered as one of the most “Creative Arts” as it requires a vast knowledge, along with innovation, initiatives, implementing & integrating skills in relation to goals, resources and results.
As an Art, management calls for a corpus of abilities, skills & judgment and a continuous practice of management concepts & principles.
Challenges of Management….
To achieve specific purpose & mission To make tasks more productive & worker achieving. To manage social impacts & social responsibilities.
Reconciling the competing Interests of Management….
Organization:
• Customer needs• Orgn Needs• Orgn Constraints
Individuals:
• Aspirations• Abilities• Potential
Groups:
• Aspirations• Abilities• Potential
A manager is an employee who forms part of a management team and is accountable for exercising delegated authority over human and financial resources so as to accomplish the objectives of the organization.
Who are Managers..
Management Functions: Importance of Goal Setting
Vision
Goals
Strategies
Actions
Set direction
Management
Leadership
What Managers Do
Need to have good interpersonal skill
OB focuses on the person-to-person aspects of work
H. Fayol
Managerial Functions
Planning
Organizing
Leading
Controlling
Big Hairy Audacious Goals
Quantitative or Qualitative Approach
1990
Become a $125 billion company by the year 2000
2000 net sales $156 billions2005 net sales $312 billions
Become the company most known for changing the worldwide poor-quality image of Japanese products
1950
$25.8 billion net sales
expertise with a new standard in healthcare for compassion and service
Big Hairy Audacious Goals
By 2010, we will be the best teaching hospital in the world, coupling unparalleled clinical
Nurses at The Johns Hopkins Hospital will be recognized as international leaders in the conduct and use of research and outcomes measurement to advance the practice of nursing
Big Hairy Audacious Goals
Role-model Approach
Become the Harvard of the West
1940s
Become the Nike of the cycling industry
(Giro Sport Design, 1986)
Big Hairy Audacious Goals
Internal-transformation Approach
Transform this company from a defense contractor into the best diversified high-technology company in the world
1995 Sold its aerospace and defense division to Boeing and later become
Effective & Ineffective Visions
Effective Vision– Imaginable– Desirable– Feasible– Focused/clear– Flexible– Communicable
Problem signs– We finish the ”vision thing” and
move on to other projects– Never been brought up in
strategy or planning sessions– Any employees who’ve been
with the company for 30 days or more can’t tell what the vision means to them
Your team visions?
Evaluation of Managerial Effectiveness
Efficiency of resources utilization labor, capital, time knowledge/expertise
Adaptability over time responsiveness innovative & change over time
Ability to hold people accountable ideas and innovation overall performance
Output quality consistency/reliability meet stakeholders’ expectation
Can I be called a manager….
Conventional Managerial Functions..
Top LevelMgrs
Middle LevelMgrs
First levelManagers
Managerial Functions
• Planning• Organizing• Staffing• Leading• Controlling & Coordinating
Technical Skills
Conceptual & Decision-Making Skills
Human Skills
Management Skills
Eleven Qualities of a successful manager…
1. Command of basic facts2. Relevant Professional Understanding1. Command of basic facts2. Relevant Professional Understanding
3. Sensitivity to events4. Analytical, Problem solving & Decision Making skills5. Social Skills & Abilities6. Emotional Resilience7. Proactive Behavior
3. Sensitivity to events4. Analytical, Problem solving & Decision Making skills5. Social Skills & Abilities6. Emotional Resilience7. Proactive Behavior
8. Creativity9. Mental Agility10.Balanced Learning Habits & Skills11.Self-Knowledge
8. Creativity9. Mental Agility10.Balanced Learning Habits & Skills11.Self-Knowledge
Basic Knowledge &Information
Basic Knowledge &Information
Skills &attributesSkills &
attributes
Meta QualitiesMeta Qualities
The Success-
Ful
Manager
The Success-
Ful
Manager
Basic Managerial Roles & their Relationship with the Organizational Resources…………
Human Resources
Financial Resources
Physical Resources
Information Resources
Effective & Efficient attainment of Organizational Goals
Pla
nn
ing
Org
an
izing
Lead
ing
Con
trollin
g Management of…
Effective Versus Successful Managerial Activities (Luthans)
1. Traditional management• Decision making, planning, and controlling
2. Communications• Exchanging routine information and processing
paperwork
3. Human resource management• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking• Socializing, politicking, and interacting with others
1. Traditional management• Decision making, planning, and controlling
2. Communications• Exchanging routine information and processing
paperwork
3. Human resource management• Motivating, disciplining, managing conflict, staffing,
and training
4. Networking• Socializing, politicking, and interacting with others
Effective Versus Successful Managers
Successful managers defined as those who were promoted the fastest
Effective managers defined as quality and quantity of performance, as well as, commitment to employees:
Topmanagers
84
70
33
61
45
545050
2531
65
38
Middlemanagers
Low levelmanagers
Imp
orta
nc
e
Henri Fayol & Management Functions
Plan
Organize
Lead
Control
0%
90%
Allocation of Activities by Time
Managerial Work at Different Levels
ExecutivesMiddle
managersFirst-line
Supervisors
Imp
orta
nc
e
0%
70%
Instructing subordinatesManaging individual perf.Managing group perf.
Resource allocationMonitor environment
Supervisingindividuals
Linkinggroups
An eye onThe outside
Representing people
(All levels)
Entrepreneur
Disturbance handler
Resource allocator
NegotiatorMonitor
Disseminator
Spokesperson
Figurehead
Leader
Liaison
What Do Managers Really Do?
Performing ceremonial duties
Motivating and directing subordinates
Spend time networkingwith outside contacts
Gathering information throughface to face communication
Pass on information tosubordinates
Explain things to peopleoutside the unit
Take initiativesBring about change
Handling disturbanceDamage control
Delegation, authorizationResource allocation
Argue with othersto get a better deal
Informational Roles
Interpersonal Roles
Decisional Roles
Typical Managerial Work
Constant pressure Overburdened with obligations
not easily delegate, thus overworked
Constant interruption Respond quickly Seek the tangible Prefer oral communication Make decision in small
increments Do everything abruptly
Managers’ effectiveness is significantly influenced by their insight into their own work
A manager is the one who manages: but what is he who mismanages ????
Behaving like a Manager..
Can I be called a manager….
?
Wanna b a manager? Get inspired..
Establish ur Identity in ur organization Exercise ur authority Don’t become a PO-PO..(Don’t count on
competence to be the sole criterion for success) Train & update urself on a regular basis. Use technology Depend on ur own soft skills Be generous with small mistakes Praise others & give their due credits where they
deserve..
Hey you…Wanna be a manager…
Be a Role Model…create examples thru ur own performance & contribution
Control & care for ur employees & subordinates.. Inculcate empathy for people & show ur
willingness & concern Know ur job well Be able & competent..show leadership qualities Follow deadlines, time & resource constraints Respect personal confidentiality of ur peers &
subordinates
Wanna be a manager…
I am a manager..yet I have no time..
Create a workplace free from biasness, prejudice & internal politics.
Show willingness to try out employee ideas innovations
Set firm rules & enforce them without exception & biasness.
Handle projects with work-teams, establish time & quality goals, give authority & autonomy to others based on their competencies.
Set goals review them from time to time
Wanna be a manager…
Hey what about me???
Give ur peers & subordinates reasons to both like & trust u…
Dare to dream big…but don’t daydream Have vision & share the same with others. Never abuse ur own power or position..be ethical Listen to others… Treat ur employees as “Internal Customers” Measure & track ur key strategies & tactics on a
regular basis...
Wanna be a manager…
Managerial Roles…
Mintzberg’s Managerial Roles
Interpersonal Roles
Figurehead Role
Leader Role
Liaison Role
Informational Roles
Recipient Role
Disseminator Role
Spokesperson Role
Decision RolesEntrepreneurial
Disturbance handler
Resource Allocator
Negotiator
E X H I B I T 1-1a
Mintzberg’s Managerial Roles
E X H I B I T 1-1b
Mintzberg’s Managerial Roles (cont’d)
E X H I B I T 1-1c
Mintzberg’s Managerial Roles (cont’d)
Know ur Management Gurus…
Henry
Mintzberg
Once upon a manager…
Results are proportional to efforts Quantity of work is more important than quality We need longer working hours No breaks please !!!! No one else can do it right This problem is urgent… I am all in all…
A Manager’s Mental Blocks…
Never b the manager where….
What is the vision & mission of my organization?
How objective am I in my approach to decision making, work & handling my subordinates?
Am I sufficiently well informed to pass judgments on people & proposals?
How do my subordinates react to my management style?
Pose urself a few questions as a manager….
Mission Impossible???
Is there any system to any time scheduling or am I just reacting to the pressure of the moment?
Do I spend too much time on current disposal? Do I recognize & follow the ethical standards in
the organization? Am I always objective, rational in my judgments? Do I always have a “parent ego” & do things for
others? Do I allow & appreciate other’s views & creative
ideas?
Pose urself a few questions as a manager….
Behaving like a Manager….Some Fundas
Rule 1: “The Boss is always RIGHT”
Rule 2: “If the Boss is not RIGHT, see & believe in Rule 1”
Yessssssss Bosssssssss…
Understand the Pyramid of Efficiency, Productivity, Effectiveness & Success…..
Behaving like a Manager….Some Fundas
Efficiency
Effectiveness
Productivity
Success
• Efficiency: It is the achievement of the ends with the least amount of resources.• Productivity: It is the output- input ratio within a time period with due consideration for quality• Effectiveness: It is the extent to which the aimed objectives are achieved most economically & profitably.• Success: It is the achievement of aimed objectives.
Behaving like a Manager….Some Fundas
Efficiency Effectiveness
Do things right Do right things
Solve Problems Produce creative alternatives
Safeguard Resources
Optimize Resource Utilization
Discharge duties Obtain Results
Look carefully & say what it is…
Wanna Be a Manager…. “B+ve”
“The Glass is half ______”
Wanna Be a Manager…. “B+ve”
Aint it looks different in terms of attitude???
Thinking it all –ve
“The Glass is half EMPTY”
Thinking it all +ve
“The Glass is half FULL”
Accentuate Positive Attitude
Be effective, yet be different Have a vision & ensure constructiveness Inculcate the aura of respect & teamwork
in ur organization. Ensure self-improvement on a regular
basis Contribute regularly (involvement) Count on time/deadlines & care for ethics Get inspired & inspire others
7 Principles of being a “+ve” Manager
What ur employees expect from u…
Manage ur people: The Win Win Mantra
The New People Management Mantra
“Coalescing Corporate needs with the individuals is
crucial”
“Global competitiveness can be achieved through the best technologies and plants, but by effectively motivating your employees to perform at global standards. A new approach to managing people becomes absolutely critical here..”
Sanjiv Goenka, Vice Chairman,RPG Enterprises
Manage ur people: The Win Win Mantra
Wanna b a good Manager? Believe in ur Organization’s Talents
Talent Pool with potential to attain full
growth / perfection
Grow ur Organization’s Talents
Competency
PotentialCapacity
Capacity = Demonstrated competencies + Unrealized potential
The four fundamental capacities are learning, thinking, relating and acting
Understanding ur Organization’s Talents
AQ: Action Quotient
CQ: Conceptual Quotient
RQ: Relationship Quotient
LQ: Learning Quotient
Talent Quotient
(AQ+CQ+RQ+LQ) x Values________________________
TalentMax Capacities are the DNA of any
organization
Point of Departure
Navigation Point of Arrival
Translating organizational vision into goals and mapping the required level of capacities and competencies required to achieve goals
Aligning individual values and vision with organizational values and vision
Clear understanding of the varied roles within the organization and appreciation of the value-addition from self and others leading to building a culture of trust, sharing and team orientation
Assessment of talent to profile the level of capacities and set of competencies possessed within the organization
Enhancing capacities to learn, think, relate and act through development initiatives
Individual growth to meet & accept varied, incremental and transformational roles in an overall scenario of acknowledged need for change
Gap analysis and identification of development path
Helping individuals realize their full potential through learning and development
Developed individuals enabling breakthrough performance
D N A
Are top managers clueless?
CEO Jeff Skilling thought Enron was “in excellent shape” when he quit a few months before it collapsed
Are top managers clueless?
Joseph Berardino, CEO of Enron’s auditor, Andersen Worldwide, said no one told him some of his partners thought the firm was at risk in approving Enron’s aggressive accounting practices.
Are top manager clueless?
Roger Smith said it was a “mystery” why General Motors lost market share throughout his tenure as CEO
Virtues and drawbacks of organization
Prevalence of large, complex organizations is historically recent
Much of society’s important work is done in or by organizations, but…
They often produce poor service, defective or dangerous products and…
Too often they exploit people and communities, and damage the environment
Signs of Cluelessness
Management errors produces 100s of bankruptcies of public companies every year
Most mergers fail, but companies keep on merging
One study estimates 50 to 75% of American managers are incompetent
Most change initiatives produce little change; some makes things worse
Strategies to improve organizations
Better management ConsultantsGovernment policy and regulation
Approaches To Management
Empirical / Case Approach Interpersonal behavior Approach Group Behavior Approach Cooperative Social Systems Approach Socio-technical Systems Approach Decision Theory Approach Systems Approach Mgt Science Approach Contingency Approach Managerial Roles Approach McKinsey’s 7-S Framework Operational Approach
Empirical or Case Approach
Case Situation
Case Situation
Why?Why?
SuccessFailures
Features:• To study experience through cases• To identify successes & failures
Limitations:• Situations are all different• Limited value for development of Management Theory
Interpersonal Behavior Approach
Focus Of Study
Features:• Focus on interpersonal behavior, human relations• Based on individual psychology,.
Limitations:• Ignores planning, organizing & controlling.• Psychological training is not enough to become an effective manager
Group Behavior Approach
Study of a Group Study of Groups interacting with each other
Features:• Emphasis on behavior of people in groups• Based on sociology & social psychology,.
Limitations:• Often not integrated with management concepts, principles.• Need for closer integration with organization structure, design etc.
Cooperative Social Systems Approach
Common Goal
Org
aniz
atio
n St
ruct
ure
Features:• Concerned with both interpersonal & group behavioral aspects leading to a system of cooperation.
Limitations:• Too broad a field for the study of management.• Overlooks many managerial concepts, principles & techniques.
Socio-technical Systems Approach
Machines Operations
Technical System
Social System
Personal Attitudes Group Behavior
Features:•Technical system has great effect on the social system (personal attitudes, group behavior).
Limitations:• Emphasis only on blue-collar & lower level office works.• Ignores much of other managerial knowledge.
Decision Theory Approach
Decision Theory
Process ofDecision making
IndividualDecisionmaking
Values ofDecisionMakers
GroupDecision making
Entire Area Of BusinessActivity
Nature ofOrganizationStructure
InformationFor Decisions
Features:• Focus on the making of decisions, persons or groups making decisions, & the decision making process.
Limitations:• There is more to managing than making decisions.• The focus is at the same time too narrow & too wide.
Systems Approach
Inputs OutputsTransformation
Process
ExternalEnvironment
Re-engineering the System
Features:• Systems have boundaries, but they also interact with the external environment ie. Organizations are considered as “Open Systems”
Limitations:• Analyzes of the inter-relatedness of systems & subsystems as well as the interactions of organizations with their external environment.
Management Science Approach
E = F ( Xi, Yi )YES
NO
Features:• Managing is seen as mathematical processes, concepts, symbols & models.• Looks at management as purely logical process, expressed in mathematical symbols & relationships.
Limitations:• Pre-occupation with mathematical models.• Many aspects in managing cannot be modeled.• Mathematics is an useful tool, but hardly a school or an approach to management.
Contingency or Situational Approach
Cause Effect
Contingency
Depends On
Features:• Managerial practice depends upon circumstances (ie a contingency or a situation.• This theory recognizes the influence of given solutions on the organizational behavioral patterns.
Limitations:• Managers have long realized that there is no one best way to do things• Difficulty in determining all relevant contingency factors & showing their relationships can be very complex.
Managerial Roles Approach
Interpersonal Roles
DecisionRoles
InformationalRoles
Features:• Interpersonal Roles: Figurehead, Leader, Liaison Roles• Informational Roles: Recipient, Disseminator, Spokesperson Roles • Decision Roles: Entrepreneurial, Disturbance-Handler, Resource- Allocator & Negotiator Roles.
Limitations:• Many important managerial activities & roles like appraising others were left out.
McKinsey’s 7-S Framework
Systems
Style
Staff
Shared ValuesSkills
Strategy
Structure
Features:
• The Seven S’s are: Strategy, Structure, Systems, Style, Staff, Shared Values & Skills
Operational Approach
OperationalApproach
Draws knowledge from approaches above
Integrates the approachesWith science & theory
That is practicalFeatures:• Draws together concepts, principles, techniques & knowledge from other fields & managerial approaches• The attempt is to develop science & theory with practical application• Distinguishes between managerial & non-managerial knowledge.• Develops classification system built around the managerial functions of planning, organizing, staffing, leading controlling.
Limitations:• Does not identify “representing” or “coordination” as a separate function.