Management skills and high performanceDr.V.Thanikachalam

Decision making skills and high performance

Simple structurePromotes decision making in the lowest level in the hierarchyUse of line managers ( chairs/heads of departments) rather than staff

( administrative officers) office as decision makersEncourage entrepreneurial behaviour at every organizational level

A Simple StructureA few levels in the hierarchyApprove decisions from the shop flower levelsEncourage decision making at the point of actionSimplify communication in the organizationKeep the groups in the organizations as small as possibleMaintain group cohesiveness and improve cooperation

Complex structure Performance rigiditySlow decision makingLack of decision makingImmobilizes dynamism

Examples for simple structure

3 M Corporation80000 employees40 divisions10 subsidiariesCreate new division whenever an old one has become too largeAllow for increased contribution, interaction and sense of belonging on the part of every employee

A lean management team Management overhead-- Less number of staff managers who perform peripheral workMore line managers who are responsible for attaining the organization’s key goals Decision making is to be in the hands of line managersDecentralize decision makingStaff managers should help to solve special problems that are beyond the scope of current management experience or expertise

Staff functions 1. Solving special problemsCoordination of line managers

Lean and mean Lean – low management overhead Mean– managers make decisions (take actions) and take responsibility for decision consequences

Entrepreneurial behaviourEncourage entrepreneurial behaviour at every level of the organizationAutonomy is given to the managers to initiate ideas and take actions on their own.They are responsible for their actions.Entrepreneurs are high achievers They design high performance unitsThey take moderate risks.

Intrepreneurs Intreperuneurs take personal risks and responsibility for the decisionsThey often rebel when forcedThey like immediate feedback

Facilitation to intrepreneurs

Encourage autonomy and decision- making responsibilityOffer specific feedback on their performanceEncourage risk takingNever impose severe penalties when risk taking leads to failure

Intreprenuerial behaviourDoes not happen automaticallyResult of planned actions that encourage risk taking ,independence and sound decision making

Goal-setting skills and high performance

High-performance characteristics result from – effective goal setting both emphasize and draw upon the organization’s strengthsAccomplishing critical success factors Providing value through technologyFocusing on ends versus focusing on means to achieve them

Typical goalsEarning per shareReturn on investmentMarket shareNew product success

Critical success factors (CSFs)

Identify and concentrate on the C S F s automotive industry’s C S F s—styling, fuel efficiency, interior comforts , maintenance, quality dealership, cost control, meeting energy standards, meeting pollution norms, withstanding road conditions, safety norms

High performance Identification of C S F sCommunication of C S F sUse of C S F s

Value through technologyProduce products and services that provide value to the customer through improvement in technologyInvest in research and technologyDetach managing from an ivory towerStress hands on experience in productsKnow the positive featuresIdentify the changes that could be made to positively affect its performance.

Focusing on ends versus means

A kind of control systemTightly controls critical success factorsThe goals or ends the organization wants to achieve but loosely controls the means used to achieve these goals.The control system allows for autonomy and entrepreneurial behavior or the part of employees.It gives employees freedom to make decision as means while holding them responsible for some important organization goals or ends.

Control …On the one hand, managers are not constantly “breathing down the necks of employees”On the other hand, employees do not have complete freedom to go off in any direction they choose or freedom to avoid performing altogether.

Internal control used by employee

Through attitudes,Goals, and Motivation

External control imposed by management

Through reporting proceduresRules, andRegulations High performing firms de-emphasize paperwork (reporting)External control mechanism that detracts from overall performance

Attitude Encourages some risk-takingCreativity, innovation in terms of means, but holds employees responsible for achieving some concrete ends over the long run.

Goals Should be based on the company’s unique strengthsBasis for competitive advantageDon’t set goals beyond the company’s strengths

Interpersonal relation skills

To gain high performance through people, managers must instill an actionWorking orientation in everyoneMust encourage productivity improvementDesign a communication system that communicates a basic business value

An Action, working orientation

Instill an action orientation in employeesStrong orientation toward doing things that contribute to performance.Work is to be exciting and leading to valued rewards – including high performance.Results in higher productivity and in higher employee morale and productivity.

Working orientationResult of enthusiasm on the part of top-level managers for what the organization is doingEnthusiasm is conveyed to everyone through leadership, through motivationCelebration as means of recognizing hard work on an impromptu basis Climate conducive to contribute to an overall

An attitude of productivity improvement

Encouraging everyone to develop a strong attitude toward improving productivityInvestment through training , development and general upgrading of employee skills

Basic business valuesDevelop and communicate a basic business valueComes from customer / technology strategiesAlso from the insights of entrepreneurial chief executive officers.Also affect intangible areas, such as culture and ethics in the organizationFormulate and communicate basic business values

Selected business valuesI B M MEANS SERVICEMc DONALD- “Quality, Service, Cleanliness and Value”3M Corporation- “Never Kill a New Product Idea”

High performance and management satisfaction

Contributes to employees’ senses of self-worth and to the personal satisfaction.Produces less turnoverReduces absenteeismMinimizes job stress

Key to long-term success Invest Innovate Lead Create value where none existed beforeNever lose sight of performance goals Continuously communicate management goals

Plan for high performanceAchieveReceive rewards !