Modern Mgmt Concepts

8/13/2019 Modern Mgmt Concepts

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MODERN MANAGEMENT

CONCEPTS:


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Management Information System:

The focus of an is to supply the rightinformation to the right person at the right time.

This triad of the right person information & the

right time makes MIS powerful tool essentialfor business organizations.

If any of the three entities is not right then theMIS fails its objective.

The purpose of MIS is to maintain the flow ofinformation within an organisation by focusingon the triads.


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The Management Information System (MIS) is

a concept of the last decade or two. It has

been understood and described in a number

ways. It is also known as the InformationSystem, the Information and Decision System,

the Computer- based information System.


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The MIS has more than one definition, some of whichare give below.

1. The MIS is defined as a system which providesinformation support for decision making in the

organization.2. The MIS is defined as an integrated system of man

and machine for providing the information to supportthe operations, the management and the decision

making function in the organization.3. The MIS is defined as a system based on the

database of the organization evolved for the purposeof providing information to the people in theorganization.

4. The MIS is defined as a Computer based Information


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Role of Information in Decision Making:

Identification & structuring of problem

Putting the problem in a context

Generation of alternatives

Choice of best alternative.


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Benefits of MIS: Improves personal efficiency

Expedites problem solving(speed up the progress ofproblems solving in an organization)

Facilitates interpersonal communication Promotes learning or training

Increases organizational control

Generates new evidence in support of a decision

Creates a competitive advantage over competition Encourages exploration and discovery on the part of the

decision maker

Reveals new approaches to thinking about the problemspace

Helps automate the Managerial processes.


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MANAGEMENT BYOBJECTIVES:


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-Is a process where superiors and subordinates jointly

identify the common objective, set the results that

should be achieved by subordinates and assess the

contribution of each individual.

According to George Odiome, MBO is "a process

whereby superior and subordinate managers of an

Organization jointly define its common goals, define

each individual's major areas of responsibility in

terms Of results expected of him and use these

measures as guides for operating the unit and

assessing the contribution of each of its members."


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Features Of MBO :-

Superior-subordinate participation [superior and thesubordinate to recognize that the development of objectives is a

joint project/activity]

Joint goal-setting [subordinate in consultation with his

superior sets his own short-term goals]

Joint decision on methodology [MBO focuses specialattention on what must be accomplished (goals) rather than how it

is to be accomplished (methods)].

Makes way to attain maximum result [attain maximumresults from available resources by focussing on attainable goals]

Support from superior [superior acts as a coach and

provides his valuable advice and guidance to the subordinate]


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Steps In MBO Planning

Goal setting: The first phase in the MBO process is to define theorganizational objectives. These are determined by the top managementand usually in consultation with other managers. Once these goals areestablished, they should be made known to all the members. In settingobjectives, it is necessary to identify "Key-Result Areas' (KRA).

Manager-Subordinate involvement: After the organizational goals aredefined, the subordinates work with the managers to determine theirindividual goals. In this way, everyone gets involved in the goal setting.

Matching goals and resources: Management must ensure that thesubordinates are provided with necessary tools and materials to achievethese goals. Allocation of resources should also be done in consultationwith the subordinates.

Implementation of plan:After objectives are established and resources areallocated, the subordinates can implement the plan. If any guidance orclarification is required, they can contact their superiors.

Review and appraisal of performance: This step involves periodic review ofprogress between manager and the subordinates. Such reviews woulddetermine if the progress is satisfactory or the subordinate is facing some

problems. Performance appraisal at these reviews should be conducted,based on fair and measurable standards.


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Advantages of MBO :-

Develops result-oriented philosophy

Formulation of dearer goals

Facilitates objective appraisal

Raises employee morale

Facilitates effective planning

Acts as motivational force

Facilitates effective control

Facilitates personal leadership


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Limitations of MBO:-

Time-consuming

Reward-punishment approach

Increases paper-work

Creates organizational problems Develops conflicting objectives

Problem of co-ordination

Lacks durability Problems related to goal-setting

Lack of appreciation


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How To Make MBO Effective?

Support from all

Acceptance of MBO programme by managers

Training of managers

Organizational commitment

Allocation of adequate time and resources

Provision of uninterrupted information

feedback


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TOTAL QUALITY MANAGEMENT


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INTRODUCTION TO TQM

What is TQM?

TQM is the integration of all functions and processes within

an organization in order to achieve continuous

improvement of the quality of goods and services. The goalis customer satisfaction.

No doubt , humans are always deficient

(Al-Quran)


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The Three Quality Gurus

Deming: the best known of the early pioneers, iscredited with popularizing quality control in Japan in early

1950s.Today, he is regarded as a national hero in that

country and is the father of the world famous Deming prize

for quality.


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JURAN

Juran, like Deming was invited to Japan in 1954 by theunion of Japanese Scientists and engineers.

Juran defines quality as fitness for use in terms of design,conformance, availability, safety and field use. He focuseson top-down management and technical methods ratherthan worker pride and satisfaction.


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Philip Crosby: author of popular book Quality is

Free. His absolutes of quality are:

Quality is defined as conformance to requirements, not

goodness

The system for achieving quality is prevention, not

appraisal. The performance standardis zero defects, not thatsclose

enough

The measurement of quality is the price of non-

conformance, not indexes.


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Commonality of Themes of Quality Gurus

Inspection is never the answer to quality improvement, noris policing.

Involvement of leadership and top management is essentialto the necessary culture of commitment to quality.

A program for quality requires organization-wide effortsand long term commitment, accompanied by the necessary

investment in training.

Quality is first and schedules are second.


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MANAGEMENT

OF PROCESS

QUALITY

HUMAN

RESOURCE

DEVELOPMENT

AND

MANAGEMENT

STRATEGIC

QUALITY

PLANNING

INFORMATION

AND ANALYSIS

CUSTOMERFOCUS

AND

SATISFACTION

QUALITY

AND

OPERATIONAL

RESULTS

SENIOR

EXECUTIVE

LEADERSHIP

System Approach for TQM

Driver

System


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Characteristics of TQM Leader

Visible, Committed and Knowledgeable

Aggressive Targets

Strong Drivers

Communication of Values

Organization

Customers Contact


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TQO HRM

Five Principles are:

QualityWork the First Time

Focuson the Customer

Strategic Holistic Approach to Improvement MutualRespect and Teamwork


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Customer Satisfaction

Three Part System

Customer Expectations

Company Operations

(Processes)

Customer Satisfaction


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Indicators for Customer Satisfaction

Frontline empowerment

Excellent hiring, training, attitude and morale for front lineemployees

Proactive customer service system

Proactive management of relationship with customers Use of all listening posts

Quality requirements of market segment

Commitment to customers

Understanding customer requirements Service standards meeting customers requirements


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Sustaining the Quality

Organization

View quality as a journey (Race without afinish line)

Recognize that success takes time Create a learning organization Planning

Execution of plans

Assessment of progress Revision of plans based on assessment findings


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Benefits of TQM

Greater customer loyalty

Market share improvement

Higher stock prices

Reduced service calls Higher prices

Greater productivity


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Conclusion

Remember the earth revolves around the

CUSTOMER. Quality begets customers and

customers beget quality. Let us all have action

plans to support quality, this will make the worldhappy and earn us the blessing of God Almighty.

Actions are direct reflection of ones intentions(Al-Quran)


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SWOT Analysis


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A technique that enables a group or

individual to move from everyday problems

and traditional strategies to a fresh

perspective.

What is SWOT Analysis?


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SStrengths

WWeaknesses

OOpportunities

TThreats

SWOT is an acronym for:

Internal Environment

External Environment


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Strength

Any existing or potential resources or capability

within the organisation that provides a competitive

advantage in the market.

Example:

Strong distribution network

Intense Staff commitment and loyalty

Increasing profit margin

Activity #1: Can you identify some of your

organisationsstrengths?


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Weakness

Any existing or potential force which could serve

as a barrier to maintaining or achieving a

competitive advantage in the market.

Example:

Lack of a clear company strategy

Lack of training opportunities for using a new software

Activity #2: Can you think of some of your

companys weaknesses?


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Opportunity

Any existing or potential force in the external

environment that, if properly leveraged, could

provide a competitive advantage.

Example:

Organisations geographic location

New technology

Activity #3: Can you think of some opportunities

available to your company?


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Threat

Any existing or potential force in the external

environment that could erode a competitive

advantage.

Example:

A new competitor entrant

A recession, rising interest rates, or tight credit lines

Activity #4: Can you think of some threats to your

business?


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Aim of SWOT Analysis

1. Take advantage of strengths and

opportunities.

2. Minimise weaknesses and eliminate threats


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Who Needs SWOT Analysis?

ACompany

When revenue, cost and expense targets are notbeing achieved;

Market share is dropping;

Industry conditions are unfavourable;

Want to launch a new business venture; etc


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A Department/Business Unit

When the team has not met its targets;

Customer service can be better; A new business unit to pursue a new business;

A new team leader is appointed; etc


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Job Holder

When supervisor has issues with work output;

Assigned to a new job;

New financial yearfresh targets;

Job holder seeks to improve performance on the job;etc.


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A SWOT analysis is useful only when action

plans and strategies are developed from the

results

How to do SWOT Analysis?

Prepare

Action Plans

Analyse Internal

& ExternalEnvironment

Perform SWOT

Analysis andDocument

Step 1 Step 2 Step 3


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Benefits of SWOT Analysis

Solving problems

Implementing change

Developing strategies for achieving theorganisations objectives and mission


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Some Brainstorming Rules

No idea is stupid,everyones contributionis valid and important

You dont have toagree with anyone else

Build on the ideas of others-use initial ideas as a jumping

-off point for more ideas

Always ask questions Seek first to understandbefore being understood Have fun!!!Be open-minded

Everyone mustparticipate


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Activity #5: Sample Questions

Strength Weakness

Which strengths are unique to

the team?

What are we good at doing?

What are the things that had

gone well?

What should be done better in

the future?

What knowledge do we lack?

Which skills do we lack?

What system do we need to

change?


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Activity #5: Sample Questions

Opportunities Threats

What are the key success

enablers?

Which additional services can

we offer?

What new market should we

investigate?

Barriers to progress

What are the possible

impacts of what competitors

are doing?

Which regulatory issue might

cause us concern?


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SWOT Worksheet

Strengths Weaknesses


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SWOT Worksheet

Opportunities Threats

Modern Mgmt Concepts

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