Management Perspective 1

8/14/2019 Management Perspective 1

1/160

1

MANAGEMENT PERSPECTIVE

Process

August 2008, N L DalmiaFull Time- 1st. Sem


2/160

2

Definition

Accomplishment of objectives through theefforts of people performing certainfunctions.

Analyze definition (1) Accomplishment ofresults thru the efforts of other people.(2)Art of getting things done organized

groups. (3) Mgmt is a process of Planning,Organizing, Actuating and Controlling todetermine and accomplish the objectives.


3/160

3

Management as a process

Series of interrelated functions- Planning,organizing, staffing, leading, & controlling.

Social process provides an environment,

provides incentives for good performance. Management as a discipline specialized

branch of knowledge.

Management as an activity performed bymanagers; planning, organizing, staffing,directing & controlling.


4/160

4

Scope of Management

Three distinct areas.(1) Economic resource, (2)System of Authority, (3) A class or elite.

Economic resource along with land, labor and

capital. Effective use of the 5 Ms (Manpower,materials, money, machinery, methods)

System of Authority- Herbison & Myers declaresMgmt is rule enforcing body bound together by

relationships between superior & subordinates Mgmt as a class or elite a distinct class in

society having own value system


5/160

5

Functions of Management

Five functions: 1. Planning 2. Organizing

3. Staffing. 4. Leading 5. Controlling.

Management applies to any kind oforganizations.

Applies to managers at all levels

Aim of all managers is to create surplus Management is concerned with

productivity, effectiveness & efficiency


6/160

6

Functions of Management

Managers must operate in external

environment that effect operation.

Must be responsive to economic, social,

ecological, political & ethical factors.

Time spent for each function may differ.


7/160

7

Why management principals?

1. To increase efficiency: Principles aidthinking & action. Need for guess work,haphazard activities reduced. Rapid

changes in the environment can be solved To crystallize the nature of

Management: Principals crystallizeknowledge without which not possible toimpart knowledge & provide training tomanagers.


8/160

8

Why management principals?

To improve research in management:

Management deals with highlyunpredictable human beings. Principals

help in testing human behaviorunderstanding & predicting the outcome.

To attain social goals: Managers quality

of life & standard of living can be improvedManagers can commit resources & employthem in a judicious manner.


9/160

9

Skills of An Effective Manager

Must possess 5 skills as presented below

Planning skills: Ability to forecast, ability to

think ahead, state organizational objectives

clearly and precisely, set performance standards Organizing skills: Ability to analyze & describe

various organizational jobs. Ability to select,

train, develop, maintain & retain people. Ability

to define working relationship & authority flow.

Ability to get along with changing situations


10/160

10


Leading skills: Ability to see big picture. Ability

to communicate ideas effectively. Ability to

inspire people to do better. Ability to inculcate a

sense of team work. Ability to assess situation &initiate changes.

Controlling Skills: Ability to keep the activities

on the desired path. Ability to initiate corrective

steps at right time. Ability to ensure controlwithout hurting the feelings of employees.


11/160

11


Decision making skills: Ability to make

good and timely decisions. Ability to

devote on key, important and strategic

issues. Ability to make right choices & takethe organization forward. Ability to commit

funds to the best advantage.


12/160

12

Levels of Management

In a large organization, 3 levels of managementare usually identified Top, Middle Lower levelmanagement.

TOP MANAGEMENT : Determines objectives and policies

Designs the basic operating & financialstructure of an organization

Provides guidance and direction Lays down standards of performance

Maintains good public relations.


13/160

13

Levels of Management

MIDDLE MANAGEMENT

Interprets and explains the policies framed by the topmanagement

Issues detailed instructions

Participates in operating decisions

Trains other managers

LOWER MANAGEMENT

Plans day to day operations, arranges tools & eqipment

Assign jobs to workers, provides supervision

Maintain discipline


14/160

14

Who are effective Managers?

Have vision, think long term, set direction.

Are good communicators & good listeners

Understand operations

Know where to spend time and prioritise

Do not resist change

Delegate well, accept responsibility & admit

mistakes Are motivating, curious, honest, credible &

decisive


15/160

15

Emergence of Management Thought

Federick W Taylor Father of scientific

management. Increase productivity through

greater efficiency in production.

Increased pay for workers Apply scientificknowledge

Create group harmony and cooperation for

maximizing output & developing workers.

Gantt: Scientific selection of workers.

Cooperation between labor & management.


16/160

16

Emergence of Management Thought

Frank & Lilian: Time and motion studies.

Henri Fayol: Introduced modern

operational theory. Divided industrial

activities in 6 groups (A) Technical (B)

Commercial (C) Financial (D) Security (E)

Accounting & (F) Managerial

Elton Mayo: Famous for studies of social

attitudes & relationship of work groups.


17/160

17

Fayols 14 Universal Principals

1. Division of work specialization of labor

2. Authority right to give orders.

3. Discipline- Obedience & respect

4. Unity of command- Each employee receives

orders only from one supervisor.

5. Unity of direction: Coordinated & focused

6. Subordination of individual interest 7. Remuneration: Should be paid fairly


18/160

18

Fayols 14 Universal Principals

8. Centralization & Decentralization is a matter

of proportion.

9. Scaler chain: Formal chain of command

10. Order: Men & material in proper places

11. Equity: Fairness & justice lead to devoted &

loyal service.

12. Stability & tenure: to learn jobs 13. Initiative: satisfaction to carry out plan.

14. Esprit de corps: Team spirit for harmony.


19/160

19

Environment of Management

External environment- Operating in apluralistic society

Technological environment: The

knowledge age- rethinking to balancefreedom & restriction for control purposes

Ecological Environment- relation of people

with land, water air. Example: (a) Bhopaltragedy and Union Carbide. (b) Thegreening of Toshiba.


20/160

20

Organizational Environment

Intrapreneur & Entrepreneur

Intrapreneur- person who focuses oninnovation & creativity within the

organization for profitable venture. Entrepreneur- person does above things

but outside the organizational settings

They see an opportunity, obtain capital,know-how and other inputs. Take personalrisk of success or failure.


21/160

21

Management- Science or Art

Arguments on both sides: start - science

Systemized body of knowledge

Management is a social science Management is an inexact science: not

like physics or chemistry. No absolute

principals as business conditions flexible Manager Vs Scientist: Scientist can wait

but managers cannot.


22/160

22

Management- Science or Art

Start : Art Use of Knowledge

Creative art Combines human & non

human resources to achieve results.

Personalized: Every manager has his own

way of managing people. Managers learn

over years by trial & error method.

Constant practice: Learn from mistakes.

Gains knowledge over a period of time


23/160

23

10 Managerial roles - Mintzberg

Interpersonal Roles

Figure head role

Leader role

Liaison role

Informational role

Recipient role

Disseminator role

Spokesperson role


24/160

24

10 Managerial roles - Mintzberg

Decision role

Entrepreneurial role

Disturbance handler role Resource allocator role

Negotiator role


25/160

25

Environment in Management

Managers, in business, govt, university etc

takes account of external environment.

In Pluralisticsociety many groups exercise

power. Managers must integrate aims.

Managers identify, evaluate & react to the

forces outside the enterprise

Society has influence on organizations

which can affect their operations.


26/160

26

Managers Social Responsibility

Corporate Social Responsibility & Social

Responsiveness

Public needs have changed. Discourages

govt. intervention. More freedom/flexibility.

Benefits to society & neighborhood.

Reaction or proaction?

The role of government.


27/160

27

Ethics in Managing

Definition: Defined as the discipline dealing withwhat is good and bad and with moral duty andobligation.

Personal Ethics: Rules by which an individual

lives own personal life Accounting Ethics: Codes that guide the

professional conduct of accountants. Business Ethics: Concerned with truth and

justice (for society, competition, public relation,advertising, corporate behavior etc.) in homecountry & abroad.


28/160

28

Ethics in Managing

Managers compete for information, influence &resources 3 theories.

Utilitarian theory- plans & actions should be

evaluated by their consequences, greatest goodfor greatest number of people.

Theory based on their rights all people havebasic rights - right to freedom, free speech etc.

Theory of Justice Decision makers be guidedby fairness, equity & impartiality

Ethics be institutionalized.


29/160

29

Institutionalizing Ethics

Top level managers responsible to createorganizational environment fosteringethical decision by institutionalizing ethics

1. By establishing company policy orcode and publish the same

2. By using formally appointed ethics

committee 3. Teaching ethics in ManagementDevelopment Programs


30/160

30

Planning

Involves selecting missions and objectives& actions to achieve them

Requires decision making to choose future

course of action from alternatives. Various types of plans ranging from

overall purposes to detailed action.

No plan exists until a decision acommitment of human or materialresources has been made


31/160

31

Planning

Practical steps in planning

1. Being aware of opportunity in light of the a)Market b) Competition c) Customers want d)

Strength & e) Weakness 2. Setting objectives or goals a) where we wantto be? b) What we want to accomplish andwhen?

3. Considering planning premises a) In whatenvironment? b) Internal or external. c) Will ourplans operate?


32/160

32

Planning

4. Identifying Alternatives what are the mostpromising alternatives

5. Comparing alternatives in light of goals.

Which alternatives give us the best chance atlowest cost and highest profit

6. Choosing an alternative: Selecting the courseof action to be pursued.

7. Formulating supporting plans: such as plansto a) buying equipment b) buy materials c) Hire& train workers d) develop a new product.


33/160

33

Planning

8. Numbering plans by making budgets

Develop such budgets as: 9. Volume & price of sales.

10. Operating expenses

11. Expenditures for capital equipment


34/160

34

Planning

Strategy & Policy

The term strategy derived from the Greek word

STRATEGOS meaning general.

Strategy refers to the determination of thepurpose or mission & long term objectives.

Adopts courses of action and allocation of

resources to achieve aims. Objectives are a part of strategy formulation


35/160

35

PLANNING

Policies

Are general statements guiding managersthinking in decision making.

Decisions must fall within certain limits. Intend to guide managers commitment to

the decision they ultimately make.

Essence of policy is discretion. Strategy,on the other hand concerns the directionin which human & material will be applied


36/160

36

Strategic Planning Process

Industry Analysis.Industry Analysis.

Formulation of strategy requires

evaluation of attractiveness of an industry

by analyzing the external environment.

Focus should be on the competition.

Possibility of new firms entering market.

Availability of substitute products/services.

Bargaining position of suppliers & buyers


37/160

37

Major Objective & Strategic Intent

Major objective

Are the end points towards which the

activities of the enterprise are directed

Strategic Intent

It is the commitment to win in the

competitive environment


38/160

38

Present & Future External

Environment

Above must be assessed in terms ofthreats and opportunities.

Evaluation focuses on the competitive

situation, economic, social, political, legal,demographic & geographic factors.

Environment is scanned for technological

developments for products & services. For other factors, check competitivefactors.


39/160


40/160

40

Development of Alternative

Strategies

Strategic alternatives are developed onthe basis of an analysis of the external &internal environment.

Firm may diversify operation into new &profitable markets.

Another strategy is to go international.

Under certain conditions, liquidationstrategy by terminating unprofitable line.

Retrenchment strategy often an option.


41/160

41

Consistency Testing & Contingency

Planning

This is the last aspect but essential

Even if alternative seems profitable,

management may decide against it

because it may hurt the value system.

Since future cannot be predicted,

contingency plans need to be prepared.

Contingency plan may be made where the

scenario includes major recession.


42/160

42

TOWS Matrix A Modern Tool

TOWS matrix has been introduced for analyzingcompetitive situation of a company or nation.Updated version of BCG matrix BostonPortfolio Matrix.

Has a wider scope but does not replace theearlier one.

TOWS- conceptual frame work for systematic

analysis. Matches external threats & opportunities withinternal weaknesses and strengths.


43/160

43

TOWS Matrix

T- threats, O- opportunities, W- weakness,

S- strengths. TOWS starts with threats.

Strategic planning takes place in

conditions of threat, or perceived crisis or

problem.

4 alternate strategies analysis of

external & internal environment (TOWS).


44/160

44

4 Alternative Strategies

WT strategy- lower right hand corner-

aims to minimize weakness & threats

(mini-mini strategy) Form JV, retrench or

liquidate.

WO strategy- minimize weakness &

maximize opportunities. Develop areas

within organization or acquire neededcompetencies. (Middle right hand, above

WT)


45/160

45

4 Alternative Strategies

ST- strategy, Organizations strength to deal withthreats in the environment. Maximize strengthminimize threat. (Left of WT-Middle columnbottom)

Use technological, financial, managerial ormarketing strength to cope with threats of a newproduct introduced by its competitor

Most desirable situation- can use strengths totake advantage of opportunities SO strategy.Weakness have be overcome making themstrengths. Facing threats will help them cope &focus on opportunities. Middle column middle.


46/160

46

TOWS Matrix- Time Dimension

External and internal environment are

dynamic. Some factors change over time.

Strategy designer must prepare several

TOWS matrixes at different points of time

May start TOWS analysis of the past,

continue analysis of the present and most

importantly focus on different time periodin the future.


47/160

47

The Portfolio Matrix

Tool for allocating resources

Business Portfolio Matrix developed by BostonConsulting Group shows linkages between thegrowth rate of the business & the relativecompetitive position (market share) of the firm.

Question mark need cash investment.

Star opportunities for growth & profit- continue

cash supply for more profits Cash cows provide cash to organization

Dogs not profitable, can be disposed of.


48/160

48

Management By Objectives

MBO- a comprehensive system integrating keymanagerial activities in systematic manner. It isdirected towards firms organizationalachievements.

It should be goal driven, success orientedcomprehensive management system.

Can be used for performance appraisals,motivating individuals & strategic planning.

Other sub systems include HR , planning,development, reward system, budgeting etc.


49/160

49

How To Set Objectives

Objectives to be measurable & verifiable Non Verifiable & Verifiable Objectives Make

reasonable profit- Achieve return on investmentof 12% at end of fiscal year.

Improve productivity of Production Dept-Increase production output by 5% by Dec 31,08without extra cost & current quality level.

Install a computer system- Install computerized

control system in production dept by 31 Dec, 08within 500 hours operating at less than 10%downtime during 1st 3 months & 2% thereafter.


50/160

50

Benefits Of MBO

Considerable evidences show motivation due toclear goals.

Improvement of managing through resultoriented planning

Clarity on organizational jobs, structures &delegation of authority.

Encouragement of personal commitment to their

own & organizational goals. Development of effective controls, measuring

results leading to corrective action.


51/160

51

Failure of MBO

Failure to teach the philosophy of MBO. Managersdo not explain to subordinates.

Give guidelines to goal setters. Managers must knowcorporate goals, know planning basics andknowledge of company policies

Difficulty in setting verifiable goals. Participating inMBO programs. Excessive concern for economicresults encourage unethical behaviour.

Emphasis on short term goals at the expense of longterm goals. Danger of flexibility make managers

hesitate change objectives even if was good for thecompany.

Overuse of quantitative goals- using numbers wherethey are not applicable. Downgrade important goalthat are difficult to state result.


52/160

52

Organizing

Good managers make any organization pattern

work. Good people and those who want to

cooperate will work together.

For an organizational role 3 things are needed.1) Verifiable objectives major part of planning.

2) Clear idea of major duties and 3) An

understood area of discretion or authority so that

the person filling the role knows what he or shecan do to accomplish goals


53/160

53

Organizing

In addition, to make role work effectively,provision should be made for supplying neededinformation & performance.

Organizing is

1. Identification & Classification of requiredactivities. 2) The grouping of activities necessaryto attain the objective. 3) Assignment of eachgrouping to a manager with the authority(delegation) necessary to supervise it & 4)Provision to have horizontal (same org level) &vertical (e.g. corporate head quarters, divisions& department) in the organizational structure.


54/160

54

Organization Structure

Organization structure should be designed toclassify who is to do what tasks & who isresponsible for what results no confusion &uncertainty of assignment, & furnish decision

making & communications networks reflectingenterprise objectives.

Organizational structure is formal framework bywhich tasks are divided, grouped & coordinated.

When Managers develop or change anorganization structure, they are engaged inorganization design needing 6 key elements.


55/160

55

Organizational Design

6 key elements

1.Work specialization 2.Departmentalization

3. Chain of command 4.Span of control

5.Centralization & decentralization6.Formalization.

Work Specialization

Essence of work specialization is that an entire

job is broken down into steps & each step iscompleted by different person.

Entire job is never done by one person.


56/160

56


Departmentalization : The basis by which jobs

are grouped together is called

departmentalization. Every organization has its

own way of grouping/classifying. 5 common forms of departmentalization

Functional dept: Groups by job function.

Product dept: group jobs by product line. Each

major product area under one manager who is a

specialist.


57/160

57


Geographical Dept: Groups jobs on thebasis of territory or regions or bycountries.

Process Dept: Groups jobs on the basisof product or customer flow. Workactivities follow a natural processing flowof products or customers.

Customer Dept: Group jobs on basis ofcustomers having common needs orproblems to be solved by specialists.


58/160

58


Chain of Command: It is the continuous line ofauthority that extends from upper organizationallevels to the lowest levels & clarifies who reportsto whom.

Span of control: It indicates how manyemployees can a manager efficiently &effectively manage. To a large degree thisdetermines the number of levels and managers

an organization has. Every thing being equal,the wider the span, the more efficient theorganization.


59/160

59


Centralization & Decentralization: In someorganizations, top managers make all decisionsand lower level managers & employees carry outtheir directives.

In other extreme decision making is pusheddown to the managers who are closest to action.Former Centralized, Later Decentralized.

If top managers make key decisions with noinputs from below, then the org is centralized. Incontrast, if lower level employees makedecisions, the more decentralization there is.


60/160

60

Organizational Design.

Formalization: Refers to the degree to whichjobs within the org are standardized & the extentto which employee behavior are guided by rulesand procedures.

When job highly formalized minimumdiscretion. When formalization is low jobbehavior is unstructured more freedom

High degree of formalization needs explicit jobdescription, rules & defined procedures

Varies widely between organizations e.g.Newspapers high discretion. Compositors &type setters highly standardized.


61/160

61

Common Organizational Design

Traditional Organizational Designs:

1.Simple, 2.Divisional & 3. Functionalstructure tend to be more mechanistic-

rigid & tightly controlled structure. Highspecialization , narrow span of control, rigiddepartmentalization, high formalization,limited info network (mostly downward

communication), less participation indecision making by lower level employees.


62/160

62

Simple Structure

An organizational design with lowdepartmentalization, wide spans ofcontrol, authority centralized & little

formalization. Most common in small businesses in

which the owner & manager are the same.

Strengths: Fast, flexible, inexpensive,clear accountability.

Weakness: Not proper as org grows,reliance on one person risky.


63/160

63

Functional Structure

It is an organizational design that groups similar

or related occupational specialist together. Its

the functional approach to departmentalization.

Strengths: Cost saving from specialization(economies of scale, minimal duplication)

Weakness: Managers loose sight whats best for

the org because of pursuing functional goals.

Functional specialists become insulated & have

little understanding what other units are doing.


64/160

64

Divisional Structure

It is an organizational structure made up ofseparate units or divisions. Each unit has limitedautonomy with divisional manager responsiblefor performance. He has strategic & operationalauthority over his unit.

Here the parent unit acts as an externaloverseer to coordinate & control variousdivisions. Provides legal & financial support.

Strengths: Focuses on results. Divisional

managers responsible for their products &services. Weakness: Duplication of activities & resources

increases costs & reduces efficiency.


65/160

65

Delegation of Authority

Authority is delegated when a superior gives a

subordinate discretion to make decisions.

Superiors cannot delegate authority they do not

have. Process of delegation involves 1. Determining

the results expected from a position 2. Assigning

tasks to the position 3. Delegating authority for

accomplishing these tasks. 4. Holding theperson in that position responsible for the

accomplishment of the tasks.


66/160

66


Splintered authority: Splintered authority

exists wherever a problem cannot be

solved without pooling the authority of two

or more managers Such problems could be handled by

merely referring the decision upward until

it reaches a person with the authority tomake it unilaterally.


67/160

67


Recovery of Delegated Authority:Manager who delegates authority does notpermanently dispose of it delegated

authority can always be regained. Reorganization inevitably involves some

recovery & redelegation of authority

Rights are recovered by the responsiblehead of a firm & then redelegated tomanagers of new or modified departments


68/160

68


Art of Delegation: Most failures in delegationoccur not because managers have notunderstood it, but because they are unable orunwilling to apply them.

Much of the reason lies in personal attitudestowards delegation.

Receptiveness: The delegator is unwilling togive others a chance, feels unsafe whendecision of junior differs with superiors. Theycannot welcome new ideas or compliment themon their ingenuity


69/160

69


Willingness to let go: The manager musteffectively delegate authority & relinquishhis right to make decisions.

Small business owners who have grownlarge wants to continue making decisions

Presidents & VPs should spend qualitytime in doing more important work ratherthan engaging themselves to routinedecision making work.


70/160

70


Willingness- let others make mistakes No managerwould like to see his juniors making mistakes. However,if continual checking is done, purpose of delegation isdefeated. Since everybody makes mistakes, juniors beallowed to make mistakes & their cost must beconsidered as investment for personal development.

Repeated mistakes: Can be avoided by nullifyingdelegation or hindering the development of subordinates.

Counseling, explaining objectives & policies can solveproblem. Should never discourage subordinates.


71/160

71


Willingness to trust subordinates: Whendelegating, superiors must trust theirsubordinates. Delegation implies trustful attitude.Superior may put off delegation with the thought

that subordinates are inexperienced. Provide training or select other subordinates

who are prepared to assume responsibility.

Sometimes bosses feel threatened & do notwish to let go their powers or do not know how toset up controls ensuring proper use of authorityand delegate wisely.


72/160

72


Willingness to establish broad Controls If

superiors cannot delegate responsibility for

performance & should not delegate authority

unless they are willing to find means of gettingfeedback to convince themselves that they are

doing it for the good of the organization.

More than often, reluctance to delegate & trust

comes from superiors inadequate planning &fear of loss of control.

Guide for Overcoming Weak


73/160

73

Guide for Overcoming Weak

Delegation

1. Define assignment & delegate authority inlight of results expected.

2. Select person in light of job to be done.

3. Maintain open lines of communication Seniors do not delegate all the authority orabdicate all responsibility, decentralizationshould not result in insulation. There should befree flow of information & subordinates shouldreceive information related to make decisions &to interpret them properly. Delegation, therefore,depends on situations.

Establish Proper controls


74/160

74

Establish Proper controls

Because no manager can relinquishresponsibility, delegations should be

accompanied by techniques for ensuring

that the authority is properly used. But if

controls are to enhance delegation, theymust be relatively broad & be designed to

show deviations from plans, rather than

interfering with routine actions ofsubordinates.

Reward Effective Delegation &


75/160

75

Reward Effective Delegation &

Success

Assumption of authority: Managersshould be watchful for means of rewardingboth effective delegation & effective

assumption of authority. Although, many of these rewards will bemonetary, the granting of greaterdiscretion & prestige both in a given

position & by promotion to a higherposition is often even more of anincentive.

Advantages of Decentralization


76/160

76


1.Relieves top management of some

burden of decision making & forces upperlevel managers to let go.

2. Encourages decision making &assumption of authority & responsibility.

3. Gives managers more freedom &independence in decision making.

4. Promotes establishment & use of broad

controls which may increase motivation. 5. Makes comparison of performance of

different organizations units possible.


77/160

77


6.Facilities for setting up profit centers.

7. Facilitates product diversification.

8. Promotes development of General

Managers.

9. Aids in adoption in fast changing

environment.


78/160

78

Limitations of Decentralization

1. Makes it difficult to have uniform policy. 2. Increases complexity of coordination of

decentralized organizational units.

3. May result in loss of some control byupper level managers.

4. May be limited by inadequate control

techniques. 5. May be constrained by inadequate

planning & control systems.


79/160

79

Limitations of Decentralization

6. Can be limited by the availability of

qualified managers.

7.Involves considerable expenses for

training managers.

8. May be limited by external forces (Govt,

national labor unions, control, tax policies).

9. May not be favored by economies of

scale of some operations.


80/160

80

Chapter

Fundamentals of Organizing

Copyright 2002 by South-Western, a division of Thompson Learning. All rights reserved.

O i i


81/160

81

Organizing

The deployment of organizationalresources to achieve strategic goals

Reflects deployment of resources

Shows division of labor

Formal lines of authority and

mechanisms is developed

O i ti St t


82/160

82

Organization Structure

Defines how tasks are divided,resources are deployed, anddepartments are coordinated

The set of formal tasks assigned

Formal reporting relationships

The design of systems to ensureeffective coordination of employeesacross department

Th O i ti Ch t


83/160

83

The Organization Chart

Visual representation

Set of formal tasks

Formal reporting relationships

Framework for vertical control

W k S i li ti


84/160

84

Work Specialization

Tasks are subdivided into individualjobs

Division of labor concept Employees perform only the tasks

relevant to their specialized function

Jobs tend to be small, but they can beperformed efficiently

Chain of Command


85/160

85

Chain of Command

Unbroken line of authority that links allpersons in an organization

Shows who reports to whom Associated with two underlying

principles

Unity of CommandScalar Principle

Authority


86/160

86

y Formal and legitimate right of a manager

to make decisions and issue orders Allocate resources to achieve

organizationally desired outcomes

Authority is distinguished by threecharacteristicsAuthority is vested in organizational

positions, not people

Authority is accepted by subordinatesAuthority flows down the vertical

hierarchy

R ibilit


87/160

87

Responsibility

The duty to perform the task oractivity an employee has beenassigned

Managers are assigned authoritycommensurate with responsibility

A t bilit


88/160

88

Accountability

Mechanism through which authorityand responsibility are brought intoalignment

People are subject to reporting andjustifying task outcomes to thoseabove them in the chain of command

Can be built into the organizationstructure

Delegation


89/160

89

Delegation

Process managers use to transfer authority and responsibility

Organization encourage managers to delegate authority to lowest possible level

Delegation


90/160

90

Techniques for Delegation

Give thoroughinstructions

Maintainfeedback

Evaluate and rewardperformance

Delegate the whole task Select the rightperson

g

Ensure that authorityequals responsibility

Span of Control


91/160

91

Number of employees who report to a supervisor

Traditional view, about seven subordinates permanager

Many lean organizations today have 30, 40, or even

higher subordinates When supervisors must be closely involved with

subordinates, the span should be small

Supervisors need little involvement with subordinates,

it can be large

Factors Associated With Less Supervisor Involvement


92/160

92

Work is stable and routine

Subordinates perform similar work tasks

Subordinates are concentrated in a single location Subordinates are highly trained

Rules and procedure defining task activities areavailable

Support systems and personnel are available for themanager

Little time is required in nonsupervisory activities

Managers preferences and styles favor a large span

Tall versus Flat Structure


93/160

93

Tall versus Flat Structure

Span of Control used in an organizationdetermines whether the structure is tall orflat

Tall structure has a narrow span and morehierarchical levels

Flat structure has a wide span, ishorizontally dispersed and fewerhierarchical levels

The trend has been toward wider spans ofcontrol

Centralization versus Decentralization


94/160

94

Centralization versus Decentralization

Greater change and uncertainty in theenvironment are usually associatedwith decentralization

The amount of centralization ordecentralization should fit the firmsstrategy

In times of crisis or risk of companyfailure, authority may be centralizedat the top

Departmentalization


95/160

95

The basis on which individuals are grouped intodepartments

Vertical functional approach.People are grouped together indepartments by common skills.

Divisional approach. Groupedtogether based on a commonproduct, program, or geographicalregion.Horizontal matrix approach.

Functional and divisional chains ofcommand. Some employees report

to two bosses

Team-based approach. Created to


96/160

96

ppaccomplish specific tasks

Network approach. Small, central hubelectronically connected to their otherorganizations that perform vitalfunctions. Departments areindependent, and can be locatedanywhere.Virtual approach. Brings people together

temporarily to exploit specificopportunities then disbands

Five Approaches to Structural


97/160

97

ppDesign

Five Approaches to Structural


98/160

98

DesignSlide 2

Divisional Structure Advantages


99/160

99

Divisional Structure Advantages

Efficient use of resources

Skill specialization development

Top management control

Excellent coordination

Quality technical problem solving

Divisional Structure Disadvantages


100/160

100

Divisional Structure Disadvantages

Poor communications

Slow response to external changes

Decisions concentrated at top Pin pointing responsibility is difficult

Limited view of organizational goals

by employees

Horizontal Matrix Advantages


101/160

101

Horizontal Matrix Advantages

More efficient use of resources than

single hierarchy

Adaptable to changing environment Development of both general and

specialists management skills

Expertise available to all divisions Enlarged tasks for employees

Dual Authority Structure in a


102/160

102

yMatrix Organization

Horizontal Matrix Disadvantages


103/160

103

Horizontal Matrix Disadvantages

Dual chain of command

High conflict between two sides ofmatrix

Many meetings to coordinateactivities

Need for human relations training

Power domination by one side ofmatrix

Team Advantages


104/160

104

Team Advantages

Same advantages as functional

structure

Reduced barriers amongdepartments

Quicker response time

Better morale Reduced administrative overhead

Team Disadvantages


105/160

105

Team Disadvantages

Dual loyalties and conflict

Time and resources spent on

meetings Unplanned decentralization

Network Approach Advantages


106/160

106

Network Approach Advantages

Global competitiveness

Work force flexibility

Reduced administrative overhead

Network Approach Disadvantages


107/160

107

Network Approach Disadvantages

No hands-on control

Loss of part of the organization severelyimpacts remainder of organization

Employee loyalty weakened

Horizontal Organization


108/160

108

Horizontal Organization

When organizations grow and evolve,two things happen:

New positions and departments areadded

Senior managers have to find a way to tie

all of the different departments together

Coordination


109/160

109

Coordination

Quality of collaboration across departments

Evolution of Organization Structures


110/160

110

g

TraditionalVertical

Structure

Teams and ProjectManagers for

HorizontalCoordination

Reengineering toHorizontalProcesses

New WorkplaceLearning Organization

Structural Design


111/160

111

Task Force...A temporary team or

committee formed to solve a specific short-

term problem

TeamParticipants from several departments whomeet to solve ongoing problems

g

TeamParticipants from several

departments who meet to solve ongoing

problems

Project ManagerA person responsiblefor coordinating the activities of several

departments

Leadership & Management


112/160

112


Committee: It is a group of persons to whom as groupsome matter is committed (board, task force,commission, team etc)

Team: A small number of people with complimentaryskills, committed to a common purpose or goals forwhich they hold themselves mutually accountable.

Group processes in committees & teams : Groups gothrough 4 stages

1. Forming : The group gets to know each other

2. Storming: Members of the group determine theobjective of the meetings, conflicts arise.

3. Norming: Group agrees on norms & behavioural rules



113/160

113


4. Performing: Group gets down to task. Functions of committees: Some undertake managerial

functions, some make decisions, while others deliberate.Some have authority, others do not.

A committee may have either staff or line functions

depending on its authority. Committees may be formal or informal. If established

with delegated duties & authority, they are formal. Thosethat are informal are organized without delegation ofauthority.

Committees can be permanent or temporary. Formalcommittees are relatively permanent and may be formedfor a specific task after which it is disbanded.

Reasons for using committees &


114/160

114

teams.

The advantage ofgroup deliberation & judgment. Most problemsrequire more knowledge, experience & judgment from production,finance, engineering or sales.

Fear too much authority in a single person Fear of delegating too much to one person Representation of interested groups :

Board of directors are often selected on the basis of groupsinterested in the company

Coordination of Departments, Plans & Policies: There is generalagreement that committees are very useful for coordinatingactivities, plans & policies & implementing the same.

Transmission & sharing of information: Committees are useful

for transmitting & sharing information All group members affected bya mutual problem can learn about it simultaneously & decisions andinstructions can be received uniformly. This saves time.

Motivation through participation


115/160

115

Motivation through participation

Committees permit wide participation in decisionmaking. Persons who take part in

planning/decision making a program feel

enthusiastic about accepting & executing it.

Limited participation can be helpful.

Avoidance of action: One of the surest ways to

delay the handling of a problem & even to

postpone a decision indefinitely is to appoint acommittee. At times committee members are

chosen in a way aimed at delaying action.i

Team & Team Building


116/160

116

Team & Team Building.

Team is a small number of people withcomplimentary skills who are committed to acommon purpose, goals for which they holdthemselves mutually accountable.

Some make recommendations, others have thepower to make decisions, some actually runoperations, some teams solve problems, othersengage in activities in cross functional areas in

design, marketing, finance etc. Team members should be selected according to

the skills needed to achieve the purpose.



117/160

117


Teams should have the right mix of skills suchas functional or technical skills problem solving

and decision making skills

The team needs to be guided by rules for groupbehaviour such as attendance etc.

Goals and tasks should be identified early in the

team formation.

Members should encourage each other throughrecognition, positive feed back & reward.



118/160

118


Self Managing Teams: Organizations havestarted using self managing teams where themembers have a variety of skills.

These teams are empowered what, when &

how to do. Virtual Teams: Virtual management isdescribed as the ability to run a team whosemembers arent in the same location, dontreport to you, and may not even work for your

organization. Therefore, it is important to have aclear purpose, task, and communicate the sameto all concerned. Carefully watch for conflicts.

Group Decision Making


119/160

119


Many of the basic processes of individual &group decision are same. The rational model isused both by individuals & groups

Impact of groups on decision making: The

process of social interaction makes groupdecision different from individual decisioncomplicating the dynamics. Sometimes groupdecisions can be an asset but at other times it

can be a liability. The trick for a manager is to discover when &

how to invite group participation in discussions.



120/160

120


Many of the basic processes of individual &group decision are same. The rational model isused both by individuals & groups

Impact of groups on decision making: The

process of social interaction makes groupdecision different from individual decisioncomplicating the dynamics. Sometimes groupdecisions can be an asset but at other times it

can be a liability. The trick for a manager is to discover when &

how to invite group participation in discussions.



121/160

121

Group Decision Making Group impact relative to non programmed decisions:

1. In establishing objectives Groups are typicallysuperior to individuals-they bring greater cumulativeknowledge to problems 2. In identifying alternatives:Individual efforts ensure that different & perhaps uniquesolutions are identified from various functional areas thatlater can be considered by the groups3. In evaluating alternativesgroup judgment is oftensuperior to individual judgment because it involves awide range of view points.

4. In choosing alternatives, involving group membersoften leads to greater acceptance of the final outcome

5. In implementing the choice, individual responsibility isgenerally superior to group responsibility Whetherdecisions are made individually or collectively,individuals perform better in carrying out the decisionthan groups do.

Assets & Liabilities of Group

D i i M ki


122/160

122

Decision Making

Assets :Groups canaccumulate more knowledge &facts.

Groups have a broaderperspective & consider morealternatives.

Individuals who participate ingroup decisions are mostsatisfied with the decision &are more likely to support it.

Group decision processes

serve an importantcommunication function as wellas a useful political function.

Liabilities: Groups often workmore slowly than individuals.

Group decisions involveconsiderable compromise thatmay lead to less than optimaldecisions.

Groups are often dominated byone individual or a small cliquethereby negating many of thevirtues of the group processes.

Over reliance on group

decisions making or inhibitmanagements ability to actquickly & decisively whennecessary.

Guidelines for Overcoming

G thi k


123/160

123

Groupthink

For the company: Establish several independentgroups to examine the same problem Train managers in groupthink prevention techniques. For the leader: Assign everyone the role of critical

evaluator

Use outside experts challenging the group Assign a devils advocate role to one member of the

group Try to be impartial & refrain from stating your own views. For group members: Try to retain your objectivity & be

a critical thinker. Discuss group deliberations with a trusted outsider &

report back to the group.

Guidelines for Overcoming

G thi k


124/160

124

Groupthink

For the deliberation process: At times, break the group into sub groups

to discuss the problem.

Take time to study what other companiesor groups have done in similar situations.

Schedule second chance meeting to

provide an opportunity to rethink theissues before making a final decision.

Managing Change


125/160

125

Managing Change

First, the focus is on change of individuals (Specificallymanager development & training). Second, the focusshifts to groups and individuals.

Manager development refers to long term, futureoriented programs and the progress the person makes

learning how to manage Managerial training pertains to programs that facilitate

the learning process and is mostly a short term activity.

Organizational development is a systematic, integrated

& planned approach to improving the effectiveness ofgroups of people and of the whole organization or amajor organizational unit.

Manager Development Process


126/160

126

a age e e op e t ocess

Manager development & training must bebased on needs analysis derived from acomparison of actual performance & behaviourwith required performance & behaviour.

Future needs: Progressive organizations goone step further; they prepare for the moredistant future. They forecast what newcompetencies will be demanded by changing

technology & methods. On the job training: Many opportunities for

development can be found on the job.



127/160

127

g p

Planned progression is a technique that givesmanagers clear idea of their path of development.Managers know where they stand & where they aregoing.

Job rotation: Purpose is to broaden the knowledge of

managers. They may rotate through 1. Non supervisorywork 2. Obser- vation assignments 3. Variousmanagerial training positions 4. Middle level assistantpositions 5. Unspecified rotation to various managerialpositions in different deparments.

Creation of Assistantto positions_ frequentlycreated to broaden the view points. Work closely withsenior managers who devote time for development oftrainees.



128/160

128

g p

Temporary promotions: Appointed as actingmanagers. Temporary promotions aredevelopmental device

Committees & junior boards: Used as

developmental techniques. Work withexperienced managers.

Coaching: it is the responsibility of every linemanager. Must be done in a climate of

confidence & trust. Patience & wisdom arerequired of superiors willing to delegate authority& give recognition & praise for jobs well done.

Approaches to Manager

Development


129/160

129

Development

Conference programs University Management Program

Readings, Television & Video instructions

Business simulation & Experimental

Exercise

Special Training program

Evaluation & Transfer.


130/160

Reduction of Resistance


131/160

131

Reduction of resistance can be achieved inmany ways.

Involvement of organizational members inplanning change can reduce uncertainty.

Communication about proposed changes alsohelps clarify the reasons or effects of thechanges.

Some approaches focus on the people involved

in the change, others involve changes inorganization structure or technology.

Learning Organization


132/160

132

g g

A learning organization is one that canadapt to changes in the externalenvironment through continuous renewalof its structure & practices.

5 technologies that help the organizationto learn.

1. Systems thinking 2. Personal mastery

3. Mental models. 4. a shared vision 5.Team learning.

Control Process


133/160

133

Basic control process involves 3 steps.

1. establishing standards 2. measuring performance against these standards 3.correcting variations from standards & plans. Plans are yardsticks to devisecontrols.

Establishment of standards: Plans vary in detail & complexity, so managersdont use it

Standards are simply criteria of performance

They are the selected points in an entire planning program at which measures ofperformance are made. Best standards are verifiable goals. Measurement of Performance: Should be ideally done on a forward-looking

basis, so that deviations can be detected in advance & avoided by appropriateaction.

Deviations should be disclosed as early as possible. If standards are properlydrawn, appraisal of actual performance is fairly easy There are many activities

which are hard to measure. In the less technical kinds of work for eg. controllingthe work of the Vice President finance or Director, Industrial Relations is noteasy because definite standards are not easily developed.

The superior managers often relies on vague standards such as financial healthof the company, the attitude of the labor unions, the absence of strikes etc

Control Process


134/160

134

Correction of deviation: It is the point atwhich control can be seen as a part of the

whole system of management. Managers

may correct deviations by redrawing theirplans or by modifying their goals. They

may hire additional staff or train their

subordinates.

Critical Control Points


135/160

135

Principle of critical-point control: Effectivecontrol requires attention to those factors criticalto evaluating performance against plans.

The points selected for control should be critical,

in the sense either of being limiting factors or ofshowing better than other factors.

With such standards, managers can handle alarger group of subordinates and thereby

increase their span of management withresultant cost saving & improved communication

Selecting Critical Points of Control


136/160

136

The ability to select critical points of control isone of the arts of management.

Questions are to be asked 1. What will best

reflect goals of the department? 2. What will best

show us when these goals are not being met? 3.

What will measure best critical deviations? 4.

What will tell me who is responsible for any

failure? 5. What standards will cost the least? 6.For what standards is information economically

available?

Critical Point Standards


137/160

137

Standards are of the following types: 1. Physical Standards: eg. Labor-hours Cost standards.: eg. labor cost per hour Capital standards: eg. Return on investment Revenue standards.: average sale per customer Program standards.: program for improving quality of

sales force. Goals as standards.: Verifiable quantitative or qualitative

goals

Intangible Standards :Public relations programeffectiveness Strategic plans as control points for strategic control:

here planning and controlling are closely related

Benchmarking


138/160

138

g

Approach for setting goals & productivitymeasures based on best industry practices. Developed out of the need to have data against

which performance can be measured. Whatshould be the criteria?

3 types of bench marking: 1. Strategic benchmarking 2. Operational benchmarking 3.Management benchmarking.

Identify what is to be benchmarked. Select

superior performers. Data gathered & analyzed.This becomes the basis for performance goals.

Control as a Feedback System


139/160

139

y

Management control is perceived as a feedbacksystem similar to that which operates in commonhousehold thermostat Managers do measureactual performance correcting for deviation.

Managers do measure actual performancecompare this measurement against standards,identify & analyze deviations.

Develop a program for corrective action &

implement this program to arrive at the requiredperformance level.

Real-time information & Control.


140/160

140

One of the interesting advances arising from the use ofthe computer and from electronic gathering, transmissionand storage of data is the development of systems ofreal time information.

Some people see real time information as a means ofgetting real-time control in areas of importance tomanagers. Here control can be effected at the very timeinformation shows a deviation from plans.

Development of programs of correction & theimplementation of these programs are likely to be timeconsuming tasks.

Prompt measurement of performance is necessary. Thesooner the manager knows that activities are notproceeding as per plans, the faster they can take action.

Feedforward Control


141/160

141

The time lag in the management control processshows that control must be directed toward thefuture if it is to be effective.

Using feedback & this measurement of output asmeans of control is not enough.

Managers need for effective control is a systemthat will tell them in advance to take correctiveaction. Otherwise the whole exercise becomes apost mortem.

Future directed control is largely disregarded inpractice as managers are used to accounting &statistical data for purposes of control

Requirements for feedforward

Control


142/160

142

Control

1. Make a thorough & careful analysis of theplanning & control system & identify the moreimportant input variables.

2. Develop a model of the system.

3. Model to be up to date. It should be reviewedregularly to check input variables are identified.Their interrelationships continue to representrealities.

4. Collect data on input variables regularly & putthem into the system.

Requirements for feedforward

Control


143/160

143

Control

5. Regularly assess the variations ofactual input data from planned-for inputs,

and evaluate the impact on the expected

end result. 6.Take action. Like any other technique of

planning and control, all that the system

can do is indicate problems; people mustobviously take action to solve them

Information Technology for

Controlling


144/160

144

Controlling

Management information system has beenused differently by various authors. It is defined

as a formal system of gathering, integrating

comparing, analyzing & dispersing information

internal & external to the enterprise in a timely,effective and efficient manner.

MIS has to be tailored to specific needs & may

include routine information & informationnecessary to predict the future.

Impact of Computers


145/160

145

Information needs differ at various levels: Supervisory level activities are usually highly

programmable & repetitive. Use of computers iswide spread at this level. Scheduling, planning,& controlling are just a few examples.

Middle level managers: Dept heads, plant mgrsreceives information which are also shared bythe top management regarding administration &coordination.

Need for middle level mgrs reduced because ofcomputer. Their roles may be expanded orchanged.

Impact of Computers


146/160

146

Top level managers are responsible for thestrategy and overall policy. The tasks of CEOs are not easily

programmable. Yet they can use the computerto get information from the data base to facilitatethe application of decision models.

Enables the company to make timely responsesto changes in the external environment.

Will affect the jobs of top managers less

severely than it will affect the jobs of those atlower levels.

Challenges Created By Information

Technology


147/160

147

Technology

Resistance to computer application. Speech Recognition Devices.

Telecommuting.

Computer Networks

Internet

Total Quality Management


148/160

148

One popular approach to improve quality is called Total QualityManagement TQM

Definition- Organizations long term commitment to the continuousimprovement of quality throughout the organization and with activeparticipation of all members at all levels to meet and exceedcustomers expectations.

TQM requires careful analysis of the customers needs, anassessment of the degree to which these needs are currently met, &a plan to fill the possible gap between the current & the desiredsituation.

To make TQM effective, top managers must be involved includingcooperation of suppliers. Management must provide vision,emphasize quality, set quality goals and deploy resources for the

quality program. TQM demands free flow of information vertically, horizontally and

diagonally.

Total Quality Management


149/160

149

Training & development are very important Needdeveloping skills to use tools & techniques.Teamwork often becomes a prerequisite for aneffective & efficient operation.

Quality improvement efforts need to becontinuously monitored thru data collectionevaluation, feedback & improvement programs.

TQM should result in greater customer

satisfaction, fewer defects, less waste, higherproductivity, reduced cost & improvedprofitability and an environment for high quality.

Motivational Techniques


150/160

150

What motivational techniques managers can use? Thereis no single best answer. Money: 1. Money cannot be overlooked as a motivator,

in the form of wages, incentives, bonus, stock options,insurance, medical. Gives status & power.

2. Difference of opinion: Some behavioral scientist thinkmoney is important to those who are young & raisingfamily, but not so important to those who have arrived-their needs are not urgent.

3. Money is needed in organization to avoid poaching &keep adequate staff. Wages & salaries need to becompetitive. Managers in comparable levels are paidsimilar compensation.

4. Bonuses must reflect individual performance.



151/160

151

Participation: People are motivated by being consulted on action affectingthem. Participation also means recognition. It gives people a sense ofaccomplishment.

Quality Of Working Life (QWL): Interesting approach to motivation. Givesvery broad approach to job enrichment. Also gives interdisciplinary field ofinquiry covering psychological, social & leadership theory.

Received support from managers as they think QWL is useful means for

dealing with stagnating productivity. Workers & unions also like it as theysee it as a means to improve their working conditions and improvedproductivity can justify their higher wage demands. The government feels itcan reduce labor disputes as QWL can be a means of increasingproductivity & reducing inflation.

Job Enrichment: Research & analysis indicates importance of making jobchallenging & meaningful. This applies to jobs for managers as well as tothose of non managers. Job enrichment should be distinguished from jobenlargement. Job enlargement attempts to make a job more varied byremoving the dullness of the repetitive job. This means enlarging the scopeof the job by adding similar tasks without enhancing responsibility. In jobenrichment, the attempt is to build into jobs a higher sense of challenge.



152/160

152

Limitations to job enrichment: One of the limitationsare technology. With specialized machinery & assemblyline techniques, it may not be possible to make all thejobs meaningful.

Another limitation is cost. Another question whether

workers really want job enrichment, especially the kindthat changes the basic content of their jobs. Highpercentage of workers are not dissatisfied with theirpresent job. Few need more interesting jobs. Above allthey need job security and pay. Moreover, workers are

concerned that changing the nature of tasks to increaseproductivity may mean a loss of jobs.



153/160

153

Limitation of job enrichment apply mainly tojobs requiring low skill levels. The jobs of highlyskilled workers, professional & managersalready contain varying degrees of challenge &

accomplishment. Perhaps these could beenriched considerably more than they are. Butthis can probably be done best by managementtechniques such as managing by objectives,more status symbols in the form of titles,delegation of authority, tying bonus & otherrewards to performance.



154/160

154

Making Job enrichment effective:1.Organizations need a better understanding ofwhat people want. Wants vary with people &situations.

Workers with few skills want such factors as jobsecurity, pay, benefits, less restrictive plant rules& more sympathetic & understandingsupervisors.

As people move up the ladder they find that

other factors become increasingly important..But very little research has been done on highlevel professionals & managers.



155/160

155

2. Second, if productivity increases are the maingoal of enrichment, the program must show howthe workers will benefit.

3. Third, people like to be involved and to be

given an opportunity to offer suggestions. 4. Fourth, people like to feel that their managers

are truly concerned with their welfare. Workerslike to know what they are doing & why. They

like feedback on their performance. They like tobe appreciated & recognized for their work.

Organizational Communication


156/160

156

In an organization, communication flows in variousdirections, downward, upward, &crosswise.Traditionally downward communication wasemphasized but problems can develop. It can be arguedcommunication should start with the subordinate & this

means primarily upward communication.Communication also flows horizontally that is betweensame levels. Communication involving persons fromdifferent levels who are not in direct reportingrelationship such information flow is called diagonal flow.

Since horizontal & diagonal communication has somecommon characteristics, they are also called crosswisecommunication



157/160

157

Downward Communication: It flows from higher levelto lower level in the organizational hierarchy normallyseen in an authoritarian atmosphere.

Oral downward communication include speeches,instructions, memorandum, letters, policy statements,telephone, meetings, loudspeakers, handbooks,pamphlets, procedures, & electronic news displays.

Information is often lost or distorted as it comes downthe chain.

Top managements issuance of policies are notunderstood or even read. Consequently, a feedbacksystem is essential to know what went wrong.

Downward flow of information through different levels istime consuming and frustrating for top management.



158/160

158

Upward Communication: It travels fromsubordinates tosuperiors.Often this flow is hindered by managers who filters the messages &do not transmit all the information- specially unfavorable news totheir bosses. Upper management needs to know productionperformance, marketing information, financial data, what lower levelpeople are thinking & so on.

Upward communication is primarily non directive & is usually found

in participative & democratic organizations. Suggestions, appeal,grievance, complaints, counseling are encouraged.

Ombudsperson: Companies have found that the position of theombudsperson can provide a valuable upward communication link.Effective upward communication requires an environment in whichsubordinates feel free to communicate.

Managers must create an informal climate that encourages upwardcommunication.

Lack of upward communication can be disastrous.



159/160

159

Crosswise Communication: This type ofcommunication includes the horizontal flow ofinformation, among people on the same or similarorganizational levels, & the diagonal flow, amongpersons at different levels who have no direct reporting

relationships with one another. This kind of communication is used to speed information

flow, to improve understanding, & to coordinate effortsfor the achievement of organizational objectives. A greatdeal of communication does not follow the organizational

hierarchy but cuts across the chain of command.



160/160

Written, Oral & Nonverbal Communication: Each mode hasfavorable & unfavorable characteristics. Therefore, they are usedtogether so that the favorable qualities of each can compliment theother.

Visual aids & handouts may be used to supplement oral & writtencommunication.

Written Communication: It has the advantage of providingrecords, references & legal defenses. Good for mass mailing. It canpromote uniformity in policy & procedure

Disadvantages: Written messages may create mountains of paper,may be poorly expressed & may provide no immediate feedback. Itmay take a long time to know whether a message has beenreceived or properly understood.

Management Perspective 1

Documents

Transcript of Management Perspective 1