36707784 principles of mgt jun09 edn1

8/8/2019 36707784 Principles of Mgt Jun09 Edn1

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Reference Text: Essentials of Management aglobal perspective Wiehrich & Koontz(7th Edn; Tata Mcgraw Hill)

Course Facilitator: Bijoy S Guha


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About the facilitatorAbout the facilitator JoinedJoined Philips IndiaPhilips India as a Management Traineeas a Management Trainee (1969)(1969)

After O-J-T of 18 months, became aAfter O-J-T of 18 months, became a SectionSection In-charge in a factoryIn-charge in a factory 18 months later, become18 months later, become ShopShop

In-chargeIn-charge

24 months later, took over as I/C Engineering &24 months later, took over as I/C Engineering & Customer SupportCustomer Sup

port 18 months later,18 months later, ProjectProj

ect 22ndnd I/C for new FactoryI/C for new Factory

18 months later, Manager18 months later, ManagerQualityQuality

ControlControl

42months later, Manager42months later, ManagerInnovationInnovation GroupGroup 42 months later seconded to Philips42 months later seconded to Philips GermanyGermany

24 months later returned as24 months later returned as FactoryFactory

Manager, Luminaire Centre/CalcuttaManager, Luminaire Centre/Calcutta

36 months later took over as36 months later took over as PlantPlant Manager, Kalwa Lamp Factories/Manager, Kalwa Lamp Factories/Thane the largest Philips Production complex first Indian ManagerThane the largest Philips Production complex first Indian Manager

54 months later took over as54 months later took over as SBUSBU head- Professional Lighting/Indiahead- Professional Lighting/India 36 months later took over as Head,36 months later took over as Head, CorporateCorp

orate Purchasing/India for 12Purchasing/India for 12months;months;

Started (1998) up aStarted (1998) up ajoint-venture

joint-venture between Tata AutoComp & Yazakibetween Tata AutoComp & YazakiCorp/Corp/JapanJap

an for Auto EDCS (for Auto EDCS (C.E.O,C.E.O,

Tata-YazakiTata-Yazaki) and steered it for 60

) and steered it for 60

months;months; Retired from Tata-Yazaki to start a second career as a Teacher.Retired from Tata-Yazaki to start a second career as a Teacher.(2003)(2003)


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Lectures duration is 75 minutes gross i.e. 65~70Lectures duration is 75 minutes gross i.e. 65~70minutes netminutes net:: Please bePlease be on timeon time so as to maximize utilization; lateso as to maximize utilization; late

coming disturbs the lecture flow apart from it being acoming disturbs the lecture flow apart from it being aserious breach of management etiquette.serious breach of management etiquette.

Let us practice to be Managers!Let us practice to be Managers!

Lecturing will be for max. 60 minutes:Lecturing will be for max. 60 minutes: Only one person talks at a timeOnly

one person talks at a time lecturer or lecturer orquestioner/commenter/answerer!questioner/commenter/answerer!

The last 10 minutes are set aside for summarization/The last 10 minutes are set aside for summarization/discussion thesediscussion these being recorded for Internal Marksbeing

recorded for Internal Marks forfora continuous evaluation basis.a continuous evaluation basis.

Absentees/time-passers: Bad Luck!!Absentees/time-passers: Bad Luck!!

At the end of section (4/5 lectures),At the end of section (4/5 lectures),

discussion topicsdiscussion top

icswill be given in advancewill be g

iven in advance as home assignment, to beas home assignment, to beprepared for a class discussion:prepared for a class discussion: Individuals will be selected at random to answer/explainIndividuals will be selected at random to answer/explain

questionsquestions -- thesethese being recorded for Internal Marksbeing

recorded for Internal Marks , so, sobe keen to participate!be keen to participate!

You need to use all acquired knowledge to be a Manager.You need to use all acquired knowledge to be a Manager.


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Management: Definitions, Roles &Skills


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Get jobs done by others: Motivate/Lead/Direct/Coach/Guide etc. Sharing in a group to achieve objective Empower

Structured approach to get goal: 5 Ws & 1H

Rules, regulations, processes etc. Making Profits & growing

Meeting Budgets and Targets Increasing firms value Resource & cost controls

Innovate & compete for Business Planning Organizing Staffing Directing for

achieving results

Great!L

ets

Explo

re&

Expa

nd


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Management:Manag

ement: DefinitionsDefinitions

Management is theManagement is theprocess

process of designing andof designing andmaintaining anmaintaining an environmentenvironmentin which individuals,in which individuals,working together in groupsworking

together in groups, efficiently accomplish, efficiently accomplishselected aim(s)selected aim(

s) viz. to create a surplus(s). .viz. to create a surplus(s). .Weihrich & KoontzWeihrich & Koontz

Management is not an absolute; rather it is sociallyManagement is not an absolute; rather it is sociallyand culturally determined. Across all cultures and inand culturally determined. Across all cultures and inall societies, people coming together toall societies, people coming together toperform

performcertain collective actscertain collective acts encounter common problemsencounter common problemshaving to do with establishing direction, coordinationhaving to do with establishing direction, coordinationand motivation. Culture affects how these problemsand motivation. Culture affects how these problemsare perceived and resolved. are perceived and resolved. The Art of JapaneseThe Art of Japanese

Management by R. Pascale & A. AthosManagement by R. Pascale & A. Athos ..


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ManagementManagement: Definition: Definitionctd.

Applies to and through any kind of organization:

collective, cohesive and consistent human effort towards

accomplishing a common objective.

Applies to people at all levels

Concerned with Doing the right things right at all times:1. Effectiveness: Achievement of objectives (Right Things);

2. Efficiency: Achieving those objectives with least amount/

sacrifice of resources (Things Right);

3. Continuous Improvement: in creating increasing surplus(at all times);

Improve or die = survival of the fittest

what gets measured, gets managed and improved e.g.

Productivity=Output / Input ratio


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Management: Definition ctd.

ORGANIZATION

Economic

Political

Regulatory

Societal

Technological

Globalization

Doing right things right

is affected by forces

of environment:

For creating a surplus


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ManagementManagement: The Art & Science: The Art & Science Evolution of Management- structure/styles/controls:Evolution of Management- structure/styles/controls:

From agricultureFrom agriculture manufacturingmanufacturing servicesservices

Industrial Revolution & Factory SystemIndustrial Revolution & Factory System

Information Technology & societal maturityInformation Technology & societal maturity

LocalLocal NationalNational Multi/Trans NationalMulti/Trans National GlobalGlobal

Breaking-down of barriers: Global VillageBreaking-down of barriers: Global Village

From inside-out to outside-inFrom inside-out to outside-in

Impact of speed: 24x7 mindsetImpact of speed: 24x7 mindset

Contribution of Dominant Personalities (20Contribution of Dominant Personalities (20thth Century):Century): F.W.TaylorF.W.Taylor& the scientists& the scientists (20s)(20s)

Fayol/Peter DruckerFayol/Peter Drucker& the rationalists& the rationalists (40s)(40s)

Demming/Juran/FigenbaumDemming/Juran/Figenbaum & the quality crusaders& the quality crusaders (60s)(60s) HofsteedHofsteedand the culture cluband the culture club (70s)(70s)

Tom PetersTom Peters & the excellence (& the excellence (soft is hard )soft is hard ) brigade brigade (80s)(80s)

Michael PorterMichael Porter& the value drivers& the value drivers (80s)(80s)

Prahalad/ReisPrahalad/Reis & the focus specialists& the focus specialists (90s)(90s)

HammerHammer& the change and reengineer dynamos& the change and reengineer dynamos (00s(00s))


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Management Approach, Roles & Skills:Management Approach, Roles & Skills:

Fredrick TaylorsFredrick Taylors path-breaking path-breaking scientific approachscientific approach

Henri FayolsHenri Fayols classical definition ofclassical definition offunctionsfunctions, and, and

process:process: PlanPlan OrganizeOrganize Lead(Lead(Command&CoordinateCommand&Coordinate)) ControlControl

MintzbergsMintzbergs

map of managerialmap of managerial

rolesroles

::

Interpersonal + Informational + DecisionalInterpersonal + Informational + Decisional

KatzsKatzs interpretation ofinterpretation ofskillsskills:: Technical / Human / ConceptualTechnical / Human / Conceptual

Human get things done through others:Human get things done through others: Leadership: The ability to influence a group towardsLeadership: The ability to influence a group towardsachievement of goalsachievement of goals (works of(works ofFielder, BlanchardFielder, Blanchard et al)et al)

Motivation: The willingness to exert high level of effort towardsMotivation: The willingness to exert high level of effort towards

goalsgoals (works of(works ofMaslow, Herzberg, MayoMaslow, Herzberg, Mayo et al)et al)

Communication:The transference and understanding ofCommunication:The transference and understanding ofmeaningmeaning

ManagementManagement: The Art & Science: The Art & Sciencectdctd


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Managerial Roles (Mintzberg)

Role Description ExamplesInterpersonalFigurehead symbolic head; required to show Ceremonial,

face in social & legal conditions. Civic etc.Leader Motivating & directing subordinates project plan

Liaison Networking outside for information Industry -& favours group meets

InformationalMonitor nerve centre and interpretator ReportsDisseminator networking within the organization Meetings etc.Spokesperson Transmit intent to outsiders; expert Board Meets

DecisionalEntrepreneur Opportunity finding& reacting Strategy PlanTrouble shooter Handling unexpected disturbance ContingencyResource allocator Initiating/approving changes Budgeting

Negotiator Getting best deal for Organization Contracts

ManagementManagement: The Art & Science: The Art & Science ctdctd


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Managerial Skills(Managerial Skills(Katz & others)Katz & others)

Technical SkillsTechnical Skills::

Application of specializedApplication of specialized

knowledge or expertiseknowledge or expertise

acquired though formalacquired though formal

training & its use.training & its use.

Human Skills:Human Skills:

Ability to work with people,Ability to work with people,

understand and motivateunderstand and motivate

groups & individuals.groups & individuals. Conceptual Skills:Conceptual Skills:

Mental ability to recognize,Mental ability to recognize,

analyze, diagnose and thinkanalyze, diagnose and think

through complex situations.through complex situations.

Skills NeededSkills Needed

Board

Exec.

Mgr.

Supr.

HUMAN

Concep

tual

Technical



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Different Doors to Management

Cooperative Social Systems

Group/InterpersonalBehaviour

7-S Framework

Total Quality Managemen

Applied SystemsTheory

Socio-technicalTheory

Reengineering

Contingency/Situational Theory

Rational choice/Decision Theory

Mathematical Modeling


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Evolution of ManagementEvolution of Management

Management, as a concept as we know it today, isManagement, as a concept as we know it today, isassociated with mass consumption leading toassociated with mass consumption leading to

production of standardized goods in large volumes;production of standardized goods in large volumes;

Prior to the Industrial Revolution, man madePrior to the Industrial Revolution, man made

devices were in use in sizeable numbers but oftendevices were in use in sizeable numbers but often

one of a kind and crafted rather than manufacturedone of a kind and crafted rather than manufactured

e.g watches and clocks. However, many of thee.g watches and clocks. However, many of the

supportive processes can be traced to early roots:supportive processes can be traced to early roots:logistics, scheduling e.g. boat building; automationlogistics, scheduling e.g. boat building; automation

(use of m/cs) e.g. printing;(use of m/cs) e.g. printing;

The advent of the management as a science canThe advent of the management as a science can

therefore be traced to late 18therefore be traced to late 18thth /early 19/early 19thth century.century.


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Elements of modern management, with a focus on man i.e.HR concepts first began to appear in the West around the sametime:

as a reaction to the harsh behaviourof autocratic businessmenlike Henry Ford. It evolved through (labour) Welfare, IndustrialRelations, Personnel Management to its current form. (Marxismwas becoming a recognizable philosophy in Europe!); as a need to utilize human resource betterdue the adversesupply-demand situation. Employment in the industry hadovertaken agricultural labour. This was aggravated in Europe, byWW I.

In the 20s, Rationalization & Efficiencywere the buzz-words (Taylor, Fayol etc.), calling for a scientific approach to

selection and work allocation the corner-stones of modernproduction management:

Standardization of parts and work elements resulted in ability

to make work repetitive for individuals (do-ers)

Evolution of Management ctdEvolution of Management ctd


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End of WW II brought in an era of un-sated demand, resulting in a

boom for production activity more of everything was required.Quantity backed by efficiencywere the guiding principles: an era ofOptimization driven by suppliers choice rather than customerswants. However, some people notably Japan restarted their devastated

economy with different orientation: Quality. The key was trueeconomy of all resources with the customer as the focal point sincethey did not have the luxury of a surplus funded, hungry market.

By the late 60s, demand tended to slow down and the growing

competition gave customers greater choice quality as an important

buying criterion emerged. OPEC crisis in mid-70s turned the world around on its head! Energy

the prime mover of industrial world became very expensive. The

demand boom faded with customers demanding quality and lower

prices and better service.



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First inventions of mass production were linked to textileFirst inventions of mass production were linked to textile

manufacturing (Spinning Jenny/ Hargreaves) which combined withmanufacturing (Spinning Jenny/ Hargreaves) which combined withuse of water power (Arkwright), made a powerful social impact in theuse of water power (Arkwright), made a powerful social impact in thelate 1700s; Watts steam engine completely revolutionizedlate 1700s; Watts steam engine completely revolutionizedharnessing of mechanical powerharnessing of mechanical powerfor production (first to use werefor production (first to use werecotton mills) and transport;cotton mills) and transport;

Poor Reliability of early machines led to the creation of machinePoor Reliability of early machines led to the creation of machinetools the Lathe (Maudslay) in 1790, with which to turnouttools the Lathe (Maudslay) in 1790, with which to turnout parts toparts tocloser tolerances and fit. This led to creation ofcloser tolerances and fit. This led to creation ofinterchangeableinterchangeablepartsparts and the first uses were in manufacture of muskets and and the first uses were in manufacture of muskets andpistols!pistols!

These were theThese were the triggers fortriggers formass productionmass production:: mechanicalmechanicalpower &power &interchangeable partsinterchangeable parts; leading to production moving away from; leading to production moving away fromhomes and craft-shops to work-shopshomes and craft-shops to work-shops//factories.factories.

By 1900 (in the West),By 1900 (in the West), nearlynearly everything was being produced by theeverything was being produced by the

factory system.factory system.



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Division of Labour: under this principle, work could beorganized/grouped into a set of specific, related tasks which wererepetitive in nature. Man could be trained to perform this set of tasksonly, so that efficiencyof task performance was maximized.

When extended throughout the organization, this took the formofSpecialization - with the organization benefiting from themaximum use of specialist skills. Both economically and undersupply-shortage conditions, this worked well. Much of this was an extension of trade/craft skill-groupsorganization (guilds) which was the hallmark of pre-industrialproduction.

Till the end of the 30s, these fundamentals were refined,polished(e.g. Organization structures) and extended ( e.g. work-measurements) in a relentless focus on efficiency.

With WW II, a furtherneed for reliabilitygave birth to theprinciples of sampling & inspection statistical methods were

introduced to regulate quality of output.



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Evolution of Management ctdEvolution of Management ctd This brought to the forefront the philosophy and practice ofTotal Qualityas the guiding force for manufacturing later tospread into management of operations and enterprises:

Central to this theme is the dominance of the Customer;Customers were any person or person receiving goods and/orservices internal or external; Quality was redefined as fitness for use elevated from the

narrow confines of conformance to specifications;Continuous improvementwas the key to continuity andsuccess against demands of customer and competition;importantly, everybody could contribute quality is every- bodysbusiness;

Particularly, for production, quality means best products at leastcost reduced waste of all resources, spawning a host of(linked) programs to conserve time, money & effort:

Just in Time, SMED/OTED; Lean manufacturing; Q-circles/Kaizen/6-sigma;

5-S, TPM, DoE;


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Management: A SystemsApproach


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Systems approach to Management

Organization as a System receives Input, transforms it

through a Process for Output and operates in an

Environment (economic, regulatory and other forces)

Transformation

process

input output

Feedback (Reenergizing the system)

ENVIRONMENT

System Boundary


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Systems approach to ManagementSystems approach to Management ctd.ctd.

Systems ConceptsSystem Boundaries and Subsystems

> Systems often consist of numerous

subsystems.

> Each subsystem has elements, interactions

with other subsystems, and objectives.

> Subsystems perform specialized tasks for

the overall system.

Sub-System 2e.g. Production

Sub-System 3

e.g. SalesSub-System 1e.g. Purchasing


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Systems approach to ManagementSystems approach to Management ctd.ctd.Outputs and Inputs

Systems produce Outputs from Inputs i.e. theInputs are converted to Outputs.

Outputs of one subsystem become inputs toanother subsystem.

Outputs must adhere to standards to be usefulor acceptable to the next subsystem.

System Environment Environment consists of people, organizations

and other systems that supply data to or that

receive data from the system

Managers at different levels perceive

Environment differently


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Systems approach to ManagementSystems approach to Management ctd.ctd.Inputs: 5 Ms of ManagementInputs: 5 Ms of Management

Inputs or the resources managers deal with are:Inputs or the resources managers deal with are:ManMan: human resources, both inside and connected with an: human resources, both inside and connected with an

organization;organization;

Materials:Materials: goods (hard & software, processed or semi-goods (hard & software, processed or semi-finished) and services required to create the sellable endfinished) and services required to create the sellable end

product;product;Machines:Machines: technology and expertise deployed towards thetechnology and expertise deployed towards the

transformation process;transformation process;

Methods:Methods: systems, procedures and processes seamlesslysystems, procedures and processes seamlesslyput together for the transformation;put together for the transformation;

Measurement:Measurement: score-keeping and in-process monitoringscore-keeping and in-process monitoringcontinuously with due feedback to keep on-course on time.continuously with due feedback to keep on-course on time.

MoneyMoneyis required for generating all theses Ms is required for generating all theses Ms managers need to acquire, deploy, generate andmanagers need to acquire, deploy, generate anddistribute money as a primary need for business!distribute money as a primary need for business!


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StakeStake: Something wagered or risked; an interest in an: Something wagered or risked; an interest in anenterprise with contingent gain or loss enterprise with contingent gain or loss Webster s dictionaryWebster s dictionary

HoldersHolders who have stake in Business: who have stake in Business: Shareholders:Shareholders: are the owners. They have put in their money inare the owners. They have put in their money in

the enterprise, expecting better returns from it than from otherthe enterprise, expecting better returns from it than from otherventures;ventures;

Society:Society:includes the State, provincial and local governmentsincludes the State, provincial and local governmentsfor the improvement of quality of life of its citizens;for the improvement of quality of life of its citizens;

Suppliers:Suppliers: continuity of their enterprise depends on thecontinuity of their enterprise depends on the

success of the customer enterprise;success of the customer enterprise; Customers:Customers: require the goods and services provided by therequire the goods and services provided by the

enterprise, better than those from its competitors. Theenterprise, better than those from its competitors. Theenterprise is, in turn, a supplier to its customers;enterprise is, in turn, a supplier to its customers;

Employees:Employees: livelihood depends on the health, progress andlivelihood depends on the health, progress and

success of the employing enterprise;success of the employing enterprise;

Output: for Stake-holders in Business


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There is a freedom of choice (for association)There is a freedom of choice (for association)between each of these stake-holders and thebetween each of these stake-holders and theenterprise in the longer term:enterprise in the longer term: But they sink or swim together in the shorter termBut they sink or swim together in the shorter term

Length of term definition varies with individuals!Length of term definition varies with individuals! They have varied interests in terms of specificThey have varied interests in terms of specific

outcomes,outcomes, e.g. Society in Ethics & Environmente.g. Society in Ethics & Environment, and, andoften prioritize differently even divergently,often prioritize differently even divergently, e.g.e.g.

Shareholder on higher Profit & Employees on higher Wages.Shareholder on higher Profit & Employees on higher Wages. Managers need to balance different interests,Managers need to balance different interests,

harmonizing the Business Processes towardsharmonizing the Business Processes towardssustainability i.e. shareholders & customersustainability i.e. shareholders & customer

satisfaction.satisfaction.

Output for Stake-holders in Business ctd.


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Transformation/Business process

A business process orbusiness methodis a collection of related,structured and sequenced activities ortasks that produce a

specific service or product (serve a particular goal) for a

particular customer or customers. It often can be visualized with

a flowchart (of activities) repeated over time for same outcome.

There are three types of business processes:

> Management processes, that govern the operation of a

system. Typical management processes are "

Corporate Governance" & "Strategic Management".

> Operational processes: constitute the core business andcreate the primary value stream. Typical operational processes

are Purchasing, Manufacturing, Marketing, and Sales.

> Supporting processes, which support the core processes.

E.g. Accounting, Recruitment, Technical support.
http://en.wikipedia.org/wiki/Taskshttp://en.wikipedia.org/wiki/Flowcharthttp://en.wikipedia.org/wiki/Corporate_Governancehttp://en.wikipedia.org/wiki/Strategic_Managementhttp://en.wikipedia.org/wiki/Core_businesshttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Purchasinghttp://en.wikipedia.org/wiki/Core_businesshttp://en.wikipedia.org/wiki/Strategic_Managementhttp://en.wikipedia.org/wiki/Corporate_Governancehttp://en.wikipedia.org/wiki/Flowcharthttp://en.wikipedia.org/wiki/Tasks


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Planning (What, where & when to do?)

+ Organizing (How to do?)

+ Staffing (who to do?)

+ Leading (same direction?)

+ Controlling (OK?)

to accomplish certain pre-determined,(asderived from stakeholder needs)goals &

objectives i.e. outcomes


Management as a system transforms inputs as a

whole & in each type of Business Process by:


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Inputs(Goal

Oriented)

Outputs(External

ToOrgnzn.)

Planning

Organizing

Staffing

Leading

Controlling

Product/Services,Profits, Customer &

Societal satisfaction,

Other Long-term Goals

Man, Machine

Material,

Methods,

Measurement

Stake holder Feedback (reenergizing the system)

EXTERNAL ENVIRONMENT(Opportunities,Constraints)

Stakeholders

Shareholders;Society; Customers;

Employees; Suppliers


Mgt

Core

Sup


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Management ProcessFirst Step: Planning


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Planning involves selectingPlanning involves selectingobjectivesobjectives or goals and defining theor goals and defining the

course of actionscourse of actions to achieve them:to achieve them:

Provides theProvides the road-maproad-map to take us fromto take us fromwhere we are to where we want to go;where we are to where we want to go;

Is aIs a rational approachrational approach to achieving pre-to achieving pre-

selected objectives - based onselected objectives - based on

innovation, knowledge and purpose;innovation, knowledge and purpose; Decision makingDecision making in choosing the bestin choosing the best

from alternative courses of action isfrom alternative courses of action is

integral to planning;integral to planning;


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Planningrequires asking& answering:

Quo Vadis?

Seeing & living the future but

not fortune telling!Dreams backed by clear actions toachieve them (Ws & Hs) People must know what they are

expected to accomplish, to make the

group effort effective. without a plan any road leads you to

nowhere! Finally, the plan serves as the basis

for control.

What kind ofresourcesneeded?

?

What kind of people

& org. structureto have?

?

How & Who to leadthemto reachplanned goals?

?

How & when tocontrol incase ofDeviation from plan

?

Pl f d ti f M tPl f d ti f M

t


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Top level

Managers

Middle level

Managers

Supervisors

Planning

Organiz

ing

Leadin

g

Controlling

Time spent in Managerial functions

at different levels of organization

Directional;Strategic

Operational

;

Tactical

Short-term;

Routine

Plans as foundation of ManagementPlans as foundation of Managementctd


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Mission / PurposeThe basic function or reason for existence

of an enterprise/ organization

Case in point:Case in point: MissionMission of Indiraof Indira

InstituteInstitute

To train our students to become the bestTo train our students to become the best

business minds and entrepreneurs today,business minds and entrepreneurs today,who will lead their companies successfullywho will lead their companies successfully

into the future tomorrow , locally, nationallyinto the future tomorrow , locally, nationally

and globally.and globally.


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Objectives/ GoalsThe end towards which activity of an

organization is aimed, e.g.For a Business enterprise profit, surplus creation;For a Management Institute: The number of

employable/useful trainees;Strategies

Determination of the long term objectives andadoption of a course of action

Gives a frame work for linked action-plans,communicated systematically to guidethinking and actions.


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Business Policies Plans that are general directional statements (or

understandings) that guide/help in decision making:

Repeat decisions taken reflexively;Delegation of tasks without loss of control.

Some discretion is permissible depending oncircumstances thus encouraging initiative withinlimits and situational adjustments;

Issues with Policy

Seldom documented in writing

Subject to interpretations


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Procedures Plans that are chronological sequences of

required actions: task-oriented in nature; Cuts across department boundaries (sub-

systems) in an organization: e.g. customercomplaint handling procedure;

Procedures and policies are inter related:e.g. authorization for paid leave Policy governs quota, responsible authority etc.Procedure governs application, grant and record-

keeping.

Rules Specific actions or non-actions allowing no

discretionCaution: rules (and procedures too) limit initiative!


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Programs Action plans (mainly non-routine or for

changed activities) including, taskassignments, steps to be taken, resources tobe deployed etc. to achieve a (new/renewed)goal;Primary program may require supporting programs,spreading across the enterprise;Perfect coordination between supporting & primary

programs essential to avoid delays, unnecessary

costs and expected roll-out. Programs can be a complex of (sub)goals,policies, rules and other elements necessaryfor the course of action e.g. obtaining ISOcertification.


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Budgets A statement of expected results expressed

in Numerical terms e.g. financialoperating budget = profit plan;

Budgets enforce precision in thinking:Making a budget is planning by itself;

Encourages innovation a different way towork

Budgets serve for Control:Enforces discipline in execution of plans;

Instills cost consciousness;

Makes people (constantly) plan!


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By Planning Period: Short range plans e.g. material procurement

plan in a factory

Long range plans e.g. product development

plan, plant/production facility installation;Urgent drives out the Important mismatch

between short & long term plans!

Planning horizon must allow for actions to runtheir course requiring commitments:Thus decisions today are key to good plans;

Long-term plans reap benefits of good short-termplans.


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Planning premisesInternal & externalEnvironment/conditions

Being aware ofchallenges

Market, Customerswants, Competition,Own strengths

& weakness

Setting Goals/Objectives

What to accomplish& when

Identifyingalternatives

FormulatingSupporting

plans

e.g., plan to buy material,recruit & train employees,

Comparing &

choosing analternative

Decision Making,Key SuccessFactors

Budgeting(Numberizing Plans)

e.g., Sales budget, OperationalExpense budget, Capital expenditure

Steps in PlanningSteps in Planning


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Mission

OverallObjectives &Key result areas.

Divisional objectives

Departmental objectives

Individual objectives

Board ofDirectors

CEO

DivisionHead

Product X

DivisionHead

Product Y

Sales & MktgDept

Production Dept

Sales Manager A Sales Manager B

Objectives set end results they need to be supported by a hierarchy ofObjectives set end results they need to be supported by a hierarchy of

sub-objectives, dulysub-objectives, duly networkednetworked through the organization tothrough the organization to avoid discordavoid discord andand

wasted effortwasted effort.. Management must ensure that the components of the networkManagement must ensure that the components of the network fitfit eacheach

other. This is the other. This is the Cascade PrincipleCascade Principle..


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Are areas in which performance is essential forthe success of an enterprise

Examples of generic KRAs: Market share

Return on Investment (ROI)

Service level Customer satisfaction

Peter Drucker recommends: Market standing,innovation, productivity, physical & financial

resource, profitability, managerial performance& development, worker performance & attitudeand public responsibility.


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Setting Goals/Objectives

What to accomplish& when

Planning premises

Identifyingalternatives

Comparing &choosing analternative

Decisionmaking

Strategic Planning/formulating ProcessStrategic Planning/formulating Process

trategytrategy= determination of the purpose / the basic long-teobjectives; the adoption of courses of action andallocation of resources required to achieve the ai


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Stakeholder

Wishes &Shareholderdemands

ManagementOrientation

EnterpriseProfile

Purpose &Major objectives

of enterprise

CurrentExternalsituation

Currentresourcesituation

ForecastExternalsituation

ExternalOpportunity& Threat

InternalStrengths &Weakness

Key success factors &Alternative Strategies

Strategicchoice

The Strategic Planning/formulating Process


46/100

ctd.


47/100

Porters Five Forces : anModel for analysis of the

External environment.


48/100

Forecasting Techniques: Extrapolation

Time-series statistically project demandanalyzing historical data;

Causal method seek co-relation on cause andeffect basis between two (or more) variables to

quantify demand; Statistical modeling Brainstorming Expert opinion Scenario writing:

Coping with uncertainties Sensitivity analysis & What if scenarios (trustinstinct!);

Planning for contingencies with defined cut-inmilestones.

Un-quantifiable

factors e.g. national

pride

Quality of

assumptions

Excessive data

required (often

unobtainable) to make

accurate forecasts

Environmental

changes: Technology,


49/100

The SWOT analysis & StrategyThe SWOT analysis & Strategy


50/100

The SWOT analysis & StrategyThe SWOT analysis & Strategy

formulationformulation

W/T StrategyW/T Strategy(mini-mini)(mini-mini)

take cover fortake cover for

bothboth

weaknesses &weaknesses &threatsthreats

S/T StrategyS/T Strategy(maxi-mini)(maxi-mini)

using strengthsusing strengths

to avoid orto avoid or

overcomeovercomethreatsthreats

TThreatshreatse.g.e.g.

competition,competition,

new entrants,new entrants,

reduction ofreduction of

W/O StrategyW/O Strategy(mini-maxi)(mini-maxi)

overcomingovercoming

weakness toweakness to

leverageleverage

opportunityopportunity

S/O StrategyS/O Strategy(maxi-maxi)(maxi-maxi)

using strengthsusing strengths

to leverageto leverage

opportunitiesopportunities

OOpportunitiepportunitiess

e.g. economice.g. economic

upturns,upturns,

political/ socialpolitical/ socialchanges etc.changes etc.

WWeaknesseseaknesses

e.g. areas note.g. areas not

showing up inshowing up in

strengths boxstrengths box

SStrengthstrengths

e.g. strengthse.g. strengths

in R&D,in R&D,

knowledge,knowledge,

finance etc.finance etc.

InternalInternal

FactorsFactors

ExternalExternal

FactorsFactors


51/100

ecision Making = is the core of the planning process; a pla

does not come into being unless a decision i.e. certaincommitments of resources, managerial time and moneyare made and risks are taken.aution: A Plan is not intentions and should not suffer fro

Analysis Paralysis.

Comparing &choosing analternative

Decision

making

Budgeting( Numberizing Plans)

Say, Sales budgetOperational Expense

budget,Capital expenditurebudget

FormulatingSupporting

plans

Say, plan to buyEquipment, recruit & train

Employees, develop productetc

Deployment (MBO etc.)

ann ng rem ses ra eg es


52/100

Mission

OverallObjectives &Key result areas.

Divisional objectives

Departmental objectives

Individual objectives

Board ofDirectors

CEO

DivisionHead

Product X

DivisionHead

Product Y

Sales & MktgDept

Production Dept

Sales Manager A Sales Manager B

This is the This is the Cascade PrincipleCascade Principle, discussed earlier., discussed earlier.

While setting Objectives, ideally, Top Management should getWhile setting Objectives, ideally, Top Management should get

information / buy-in from lower levels to setinformation / buy-in from lower levels to set tough buttough but

achievable goalsachievable goals for a good result.for a good result.

Bottom-up

Response

ann ng rem ses ra eg es ctd.

Top-downApproach


53/100

A comprehensive managerial system that integrates manykey managerial activities in a systematic manner and that is

consciously directed towards the effective and efficientachievement of organizations and individual objectives:

Set-out by Peter Druckerin 1954; integrated to personal

performance appraisal by Douglas McGregorin 1957;

Has formed the basis for many theories on motivation;

Has been criticized for introducing a short-term focus and

undesirable (individualistic) behaviour;

Currently viewed as a way of managing (deployment cascade)

not a specific tool.


54/100

Decision making is a rational choice process,bounded by: Limitations: time, information and logic; Behaviour: Risk averseness and biases.

A key step in the process is to identify those limitingfactors, road-blocks to each effective (right thing)

alternative then finding a solution with leastsacrifice of resources (thing right): Factors: quantitative, qualitative/intangible; Nature: structured/unstructured Finding solutions:marginal analyses benefits with incremental inputs;cost-effectiveness assessment of benefits over costs;Intuitive/judgmental making connections that are not obvious

Decision Making ctdDecision Making ctd


55/100

Top level

Managers

Middle level

Managers

Supervisors

Non-programmed

Decisions

Programmed

Decisions

Decision Makingctd.Decision Makingctd.Nature of decision making in Organizations

Non Programmed decisions: used for unstructured, novel and ill-

defined situations of non-recurring nature

Programmed decision:is applied to structured or routine problems;

very often recurring maybe under varying circumstances


56/100

How to selectAmongst the

Alternatives ?

Experience: good teacher and useful when

routine/repeat situations arise under similarcircumstances. Without due analysis of theconditions, mistakes tend to repeat or a poorfit results.

Research & analysis: the approach is in at firs

understanding the problem (half the solution!then finding relations between various factorswhich hinder or foster goal attainment. This isstructured, analytical approach quantitative orotherwise.

Experimentation: arguably, the best techniquto use, particularly when either experience orrationale is lacking/limited. However is expensiand success/failures are magnified, results arsubject to interpretational errors.


57/100

Decision making takes place under varyingdegrees of uncertain conditions and risks.

Techniques used to aid the process are: Risk analysis: every decision is based on

interactions amongst different factors/variables each of which have their own probabilities (towards

success). Analysis of these probabilities yield a riskprofile for each alternative path. In the absence ofdefined probabilities, estimates can be used.

Decision trees: the outcome (measure pre-decided

e.g. cost or time) of every step in the decision ischarted and a course selected on the mostfavourable outcome. Very much like making a trip,navigating by using a road-map (refer example in W &K, Management a global perspective/10th edn. Pg. 209)


58/100

Flow Charts: as a process-guide to taking a decision andhelps as a check-list of key variables, the sequence inwhich they fall and the interrelations. Key to making achoice or re-examining the path taken are also indicatedas risk-reduction devices.(refer example in W & K, Management a global perspective/10th edn. Figure 8-5)

Decision Support Systems: a wide variety of(proprietary) computer based programs are available formanagers to use their time more effectively for decisionmaking of semi-structured tasks by providingalternative evaluations. They focus on the process ofdecision making, taking data provide by themanagement information systems in enterprises.


59/100

Principles ofPrinciples of

Management 4Management 4Management Process:Management Process:

Organizing for resultsOrganizing for results


60/100

Organizing may be broadly defined as:1.

The identification and classification ofrequired activities;

2. The grouping of those activities towardsattaining their set objectives;

3. The assignment of those groupings to a

responsible manager, duly empowered;4. The provision for coordination among, within

and across the groups in the organization. Organization structures are designed to: Clarify tasks & responsibilities, Remove obstacles, Furnish decision making & communication

network Support attainment of enterprise objectives


61/100

The Business OrganizationModel: ValueChain (Porter,1985)

Margin

Margin

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

InboundLogistics

OperationsOutboundLogistics

Marketing& Sales

Service

Sup

portActivities

Primary Activities

argin reflects the reward for the risks run by the company.

All activities together need to generate value greater


62/100

Inbound Logistics:relate to receiving, storingand disseminating inputs;

Operations:associated with transformation ofinputs into final product form;

Outbound Logistics:relate to collecting,storing and physically distributing theproducts to buyers;

Marketing & Sales:relate to advertising,Promotion, sales, distribution-channelselection & management and Pricing;

Service:associated with enhancement or

The Value Chain: Primary Activities


63/100

Procurement: relates to the function ofpurchasing inputs used across the firmsprimary and support activities;

Technology Development: relates to know-how,processes & procedures, technologyembodied in the product design and delivery.Most activities have their own sub-set oftechnology;

Human Resource Management: directed atrecruiting, training, developing andcompensating all personnel;

The Value Chain: Support Activities


64/100

Most practicing mangers would translate thisvalue chain to imply an organization as:

a formalized, intentional structure of roles and

positions

Thus formal organization implies the intentional

structure of roles in an enterprise.

However, in an enterprise informal organization

will form, not necessarily bad and is: a network of personal and social relations not

established or required by formal organizations butarising spontaneously as people associate with eachother.

e.g. a Footballteam

e.g.

SeniorPlayers


65/100

*

*

Hierarchical levels(6)

#

*

*

Span of Management(8)

Informal OrganizationOffice Golf team

Car Pool to/from work

*C

C C C

The building block of an organizais the Department: a group char

with independent task & responsi

Sales Gr1

NCR

Goan

Car Prod

Assembly

Test

Manuf.

G Fy


66/100

Grouping activities & people into departments

makes it conceptually possible to expandorganizations to an infinite degree.

Different patterns have been successfully usedto group activities: By simple nos. is a simple method works well for

the lowest levels where work is routine, uniform andnon-specialized; time-grouping is an extension ofthis method where shift-working is required;

By enterprise functions embodies what enterprisestypically do e.g. Production, Engineering, Sales etc.

This method, defined by F.W.Taylor, is arguably themost prevalent method still used.


67/100

By territory or geography is very common when thegeographical spread is wide. It was a device introduced tospeed up management in similar units for easy and swift

communication e.g. Sales: N/E/W/S; Fire Brigade: Camp,Hinjewadi, Aundh etc.

By Customer/Account orientation reflecting the primaryinterest in nature of markets/business/customer e.g. Banks:Institutional banking, Small Savings etc.

By Process groups encountered primarily in specialized/manufacturing operations where processes are vital e.g.Advertising: Copy-writing, Creative etc.; Manufacturing: SteelMelting, Wire-drawing etc.

By Product Lines has evolved with enterprises becoming

multi-line with function needing adaptation/integration tosuit specific products e.g. Tata Motors: Passenger Vehicles /Commercial vehicles


68/100

By grid control in essence combining thefunctional and the product-line patterns to best

effect. Functional excellence is not subjugated toOperational ease. In projects,this serves to bring together the diversity of skillsrequired into one team.

The Strategic Business Unit: companies today areorganizing themselves as companies within acompanyto allow for maximum flexibility andfreedom of operations, especially when theproducts/businesses are unconnected e.g. General

Electric. Generally, SBUs have:Their own Missions, Goals and Strategies;Distinct and definable set of competitors;

Deploy and manage resources in key areas;

A reasonable size.

Departmentation ctdDepartmentation ctd.


69/100

C.E.O

Finance Qual. HRM BU 1 BU 2

I.R.M

Recr.

T&D

G/H.R

Plant 1

G/H.R

Ind.

Sin.

I.S.O

Departmentation ctd.Departmentation ctd.Example of Grid Control & S.B.Us

Nature of Organizing ctd.Nature of Organizing ctd.


70/100

The purpose of organizing is to make humanThe purpose of organizing is to make humancooperation effective and is limited by:cooperation effective and is limited by: the number of persons a manager can supervisethe number of persons a manager can supervise

effectively and efficiently;effectively and efficiently; while the total number is dictated by the quantum ofwhile the total number is dictated by the quantum of

work/ nature of task/spread etc. Thus the twowork/ nature of task/spread etc. Thus the twodimensions, Level (depth) and Span of controldimensions, Level (depth) and Span of control(width) are interrelated .(width) are interrelated .

The reason for creating Levels of organization is theThe reason for creating Levels of organization is thelimitation in the span of control. Effective span islimitation in the span of control. Effective span is

influenced by:influenced by: Training/skill of subordinates and personal contactTraining/skill of subordinates and personal contact

required;required; Clarity of delegation of authority;Clarity of delegation of authority; Clarity of plans, use of objective standards andClarity of plans, use of objective standards and

communication techniques;communication techniques;

g gg g

Span-of-ManagementSpan-of-Management

Span-of-Management ctdSpan-of-Management ctd


71/100

Levels,Levels,per se,per se, are not desireable:are not desireable:

They are expensive as they increase, bothThey are expensive as they increase, bothinfrastructure costs and staffing tends to increase;infrastructure costs and staffing tends to increase;

Real work is accomplished at the gemba (Real work is accomplished at the gemba (Japanese:Japanese:

workplaceworkplace) where the actual value-) where the actual value-

addition/transformation takes place. The contribution ofaddition/transformation takes place. The contribution of

levels on top are not directly co- relatable, thus bestlevels on top are not directly co- relatable, thus best

avoided;avoided;

Communication become complicated omissions,Communication become complicated omissions,

filterations and misinterpretations lead to wasted andfilterations and misinterpretations lead to wasted and

misdirected effort;misdirected effort; Planning and control become tortuous, requiringPlanning and control become tortuous, requiring

complicated coordination and alignment between levels.complicated coordination and alignment between levels.

Studies reveal that between 8 to 10 people at higherStudies reveal that between 8 to 10 people at higher

levels and upto 15 at lower levels is a good span.levels and upto 15 at lower levels is a good span.

Span of Management ctd.Span of Management ctd.


72/100



StaffingStaffing


73/100

Staffing seeks to: Put the Rightpeople in the RightJob at the Right

time

Further, the process needs to ensure that these

right people are retained and enabled to perform

And prepared for the right job since these change

with the operating environment.

i.e. management of Human Resources.


74/100

The Michigan State Univ. Model: Looks at employees as a means to achieving

the organizations Strategy:

as a resource that is used in a calculative andmainly rational manner,

as a means towards competitive success;

What is H.R.M?What is H.R.M?


75/100

What is HRM?What is HRM? (contd)(contd)

This hard model thus proposes that increasing

productivity and competitiveness is the

principal reason for H.R.M:

Therefore, a framework in which the needs of the

organization are paramount;

And Organizations exist to accomplish a mission or

achieve an objective, leading to 3 inter-connected

issues:


76/100

The Michigan ModelThe Michigan Model (contd)(contd)

Mission & Strategy

Orgn. Structure HR Management

PoliticalForces

EconomicForces

CulturalForces


77/100

The Michigan Model:The Michigan Model: Human ResourceHuman ResourceCycleCycle

Rewards

Development

Selection Performance Appraisal

HRM the OperatingHRM the Operating


78/100

environmentenvironment

HR Strategy Recruitment Training Pay

Empl. Relations Flexibility etc.

HR Management

National Culture

Orgn: Size & Culture

Sector

CorporateStrategy

Behaviour

Performance


79/100

A HRM Process ModelA HRM Process Model

Input Transformation Output

Feedback

Challenges Resources

Education

skills

Management Recruiting Selection Training & Dev.

Contributions Capable staff Motivated employees


80/100

HRM S t S l tiHRM Systems Selection


81/100

The process of choosing the right ones involves a seriesThe process of choosing the right ones involves a series

of steps with multiple evaluation points which adds timeof steps with multiple evaluation points which adds timeand complexity to the hiring process:and complexity to the hiring process:

Frustration among candidates/applicants,andFrustration among candidates/applicants,and

Among managers who need the job openings filled!Among managers who need the job openings filled!

But hiring is a long-term decision for the firm, whereas it isBut hiring is a long-term decision for the firm, whereas it is

at best a mid-term engagement for the applicant and theat best a mid-term engagement for the applicant and thehiring Manager.hiring Manager.

The step-wise progression in the selection process is :The step-wise progression in the selection process is :

HRM Systems: SelectionHRM Systems: Selection

# 6: Supervisory Interview

# 7: Realistic job preview

# 8:Hiring Decision

# 1: Reception of applications

# 2: Employment tests3: Selection Interviews

4: references & background checks

5: Medical Evaluation

HRM Systems: Development &HRM Systems: Development &


82/100

EvaluationEvaluation

hen a new employee is hired or present employee isreassigned, orientation /placementshould follow;new job-holders need to be trained to do their presentobs & developed to handle future tasks/responsibilities.

he success of the individual and of the HR process/dept.depends on the feedback about performance; through aperformance appraisal, the employee evaluatesthe degreof success.

mployers offer career planningto further encourage thedevelopment of employees.

Development & Evaluation:Development & Evaluation:TT && DD


83/100

pcontd.contd.

A usual step-by-step approach to preparing T&D is:

Needsassessment

T & DObjectives

Program

content

Learningprinciples

ActualProgram

Skills,Knowledge &

ability

Evaluation

Evaluationcriteria

Development & Evaluation: Performance


84/100

pAppraisal

The basis for Appraisal must be job relatedThe basis for Appraisal must be job relatedstandards of performance; if performancestandards of performance; if performancestandards are not job related, evaluation can bestandards are not job related, evaluation can bebiased.biased.

The approach must:The approach must:

Identify performance related standards;Identify performance related standards; Measure those criteria;Measure those criteria;

Give feedback to the employeeGive feedback to the employee

Keep HR Dept. informed for follow-up.Keep HR Dept. informed for follow-up.

Performance Appraisal Feedback

MeasuresStandardsRecords

Interventions

HRM Systems: Compensation &HRM Systems: Compensation &


85/100

Employees must beEmployees must be compensatedcompensatedfor theirfor their

efforts;efforts;

But this more thanBut this more than salariessalaries: it may include: it may includeincentives, benefits and servicesincentives, benefits and services as a totalas a total

package for financial and other security;package for financial and other security;

This forms the key concern of HRThis forms the key concern of HR

departments efforts to obtain, maintain anddepartments efforts to obtain, maintain and

retain an effective work force; the role thisretain an effective work force; the role this

plays inplays in employee (future & current) well-employee (future & current) well-

beingbeing..

y pProtectionProtection

Compensation & Protection:Compensation & Protection:contd.contd.


86/100

The major phases of compensation management are:

Job-analysis

comprising Position description, Job description &job standards i.e. Identify and study jobs

Job-evaluation comprising Job ranking/job grading throughFactor comparisons or Point systems i.e. Defineinternal equity

Wages & salaries surveys Labour directorate, Employerassociations, Professional associations & (self) commissioned

surveys i.e. Establish external equity Pricing Jobs Match job evaluation worth with employment

market worth; i.e Match external and internal worth

Challenges affecting compensation are: Market forces forcing pay to be more than the relative worth;

Union interventions/interference;

Government constraints & legislation;

International wage/compensation rates: offshore challenge;

Productivity & cost constraints;

Social constraints.

pp


87/100



Controlling & LeadingControlling & Leading

ControllingControlling


88/100

gg

Control Device

Controlled Entity

Detector: Information of

What is happening.

Effector: Behaviour

Alteration, if needed.

Assessor: Comparison

(With standard)

Detector: or a sensor that measures what is actually happening in the

Process being controlled.

Assessor: a device that determines the significance of what is actualsituation in comparison with some standard or expectation.

Effector: a device (often called feedback) that alters behaviour if the

Assesor indicates the need to do so.

+ a communication network that transmits information

Elements of Control


89/100

Controlling cntd.Controlling cntd.


90/100

Management controlManagement control hinges on the ability to influencehinges on the ability to influence

humanhuman bbehaviour towards achievement of the Strategicehaviour towards achievement of the StrategicObjectivObjective, i.e.e, i.e.

What actions do control initiatives motivate people to take in

their own self interest?

Are these actions in the best interest of the Organization?

Goal CongruenceGoal Congruence:: implies that actions people are led to takeimplies that actions people are led to take

in theirin theirperceived self-interestperceived self-interest are also in theare also in the interest of theinterest of the

firmfirm::

BothBoth FormalFormal andand InformalInformal processes influence human behaviourprocesses influence human behaviour

in organizations;in organizations;

Informal processesInformal processes need to be recognized since they areneed to be recognized since they are ill-ill-

defineddefined and are bothand are both intrinsic and extrinsicintrinsic and extrinsic to an Organization.to an Organization.

gg



91/100

gg

Organization

Structure

(Management)

Controls

Culture

H. R.

Management

St

ra

te

gy

Pe

rfo

rma

nc

e

Implementation Mechanism

Org. Structure specifies roles, reporting relationships, responsibilities that shape

decision making;

Culture refers to the set of common beliefs, attitudes that guide management actions

HR Management is related to activities which enable people to execute strategy;



92/100

gg

Policies & Rules:

Organograms, protocols and defined communication structure;

Written instructions/Code of Conduct/Manuals etc.;

ISO and allied systems down to task control level;

Physical controls e.g. Access cards, locked stores etc.

The Process:

Analysis/

ActionsOK?

NRevision

Y

Reward

StrategicPlanning

Goals &Strategies

OtherInfo.

BudgetingDepartmentPerformance

RulesTask ControlSafeguards

Reports:

A vs P

Measurement



93/100

g

Management control process is the process by

which managers at all levels ensure that peoplethey supervise implement their intended

strategies:Unlike the simpler systems, the

standard is not pre-set;Control is not automatic;Requires coordination amongst

individuals;The link between need for action and

determining the action is not always

clear;

Much of control is self control.


94/100

Leadership: The ability to influence a group towards

the achievement of goal, objective or target. Not allLeaders are Managers and not all Managers are

Leaders !! Kotter: Management is about coping with complexity,

Leadership is about coping with change; Zalenznik: Managers adopt impersonal and passive

attitude to goals, Leaders take an active, personal

attitude towards goals. Trait theories seek to explain leadership in terms of

personality, social, physical and/or intellectual traits todifferentiate between leaders & others. Behavioral theories propose that specific behaviors

differentiate leaders from non-leaders.


95/100

Contingency Model (Fiedler) effective group performance

depends on the proper match between leaders style ofinteraction with subordinates & the degree to which the

situation control and influence to the leader:concept of Task

& Relationship (position/power) orientation.Task Behavior: The extent to which leaders are likely to

organize and define the role of group members, to explain

5W+1H of assigned tasks characterized by well defined

structures, channels and way of working;

Relationship Behavior: The extent to which leaders are likely

to maintain personal relationships with group members,

opening up channels of communication, providing

psychological strokes and facilitating behaviors.

Hersey & Blanchards Situational Theory a contingency

theory, focusing on the followers readiness.

Hersey & Blanchards Situational Theory


96/100

L

Delegating

Able& willing

Participating

Able & unwilling

Relation

ship

Behavio

r

Task Behavior

H

HL

Selling

Unable & willing

Telling

Unable & unwilling

Follower Readiness

Mature Immature


97/100

Leading: Power & PoliticsLeading: Power & Politics


98/100

gg

Power: capacity of an individual (or group) to influence thebehavior of other(s), implying: a potential that need not be

cashed-in for effecting change & dependence as a basis ofrelationship. In organizations, there are 5 sources of power: Coercive Power that is based on fear;Reward compliance based on ability to distribute largess;Legitimate derived from (formal) hierarchical position;Expert influence based on special skills or knowledge;

Referent influenced by possession of desirable objects;Where does Power lie: Organo-grams do not always give the

implicit picture; where can be assessed as an answer to:How many people at the top have come from a dept./divn. etc?How well is the dept./divn represented in Key teams/committees?Salary/other quality level of Senior Mangers in the dept/divn?

Location, facilities and perquisites extended;Staffing strength/resource allocation, promotions extended;Symbolic perquisites to individuals: first among equals.

Leading: Power & Politics cntd.Leading: Power & Politics cntd.


99/100

g

Power Tactics: is the way in which individuals translatepower bases into specific actions: Reason use of data to make logical/rational presentation;

Friendliness Use of emotions (flattery, humility etc.) in preparation;

Coalition getting or inducing group support to the issue;

Bargaining negotiating exchange of benefits and/or favors; Assertiveness forcing (demands, reminders, orders etc.) often

using rules and formal structures;

Higher authority gaining support before acting;

Sanctions use of organizationally derivedreward/punishment.

Leading: Power & Politics cntdLeading: Power & Politics cntd.


100/100

Leading: Power & Politics cntd.Leading: Power & Politics cntd.

Politics = Power in action: Political behavior comprise thoseactivities that are not required as a part of ones formal role, but

influence the distribution of advantages/disadvantages within

organizations:

legitimate political behavior normal everyday influencing tactics

acceptable as routine to get work done; illegitimate political behavior in violation of the rules of the game:

e.g. whistle-blowing, sabotage, mass leaves etc.

Politics is a fact of life in any organizations. There will continue to be forces

for grabbing a share of the (limited) resource pie.

36707784 principles of mgt jun09 edn1

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