manoj.ghadge_otpr.course [session 16-17-18]
DESCRIPTION
Organizational TheoryTRANSCRIPT
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“OTPR”SESSIONS: 16-17-18
MODULE 5
Dynamic Processes in Organization
Coordinator & Facilitator
Manoj Ghadge
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DEFINITION OF MANAGEMENT
Management is the art/science of decision making and problem solving through
process of designing and maintaining an environment in which, individuals working
together in groups efficiently accomplish selected aims.
Management functions: planning, organizing, staffing, leading and controlling
All managers carry out managerial function but the time spent for each function may
differ
Managerial skills
Technical skills
Human skills
Conceptual skills
Design skills
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MANAGERIAL SKILLS
Technical skill: is the knowledge of and proficiency in
activities involving methods, processes, and procedures.
Human skills: is the ability to work with people
Conceptual skill: ability to see the „big picture‟
Design skills: ability to solve problem in a way that will
benefit the enterprise
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MANAGERIAL SKILL AND HIERARCHY
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GOAL OF THE MANAGER
The aim of all managers should be to create a “surplus”
To create an environment in which people can accomplish
group goals with less amount of time, money, materials, and
personal dissatisfaction
To ensure productivity, effectiveness and efficiency
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PRODUCTIVITY, EFFECTIVENESS AND EFFICIENCY
Productivity = Output / Input ; within a time period and
quality ensured.
Effectiveness : achievement of objectives.
Efficiency : achievement of ends with the least amount of
resources.
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MANAGING: SCIENCE OR ART?
Managing as practice is an art
The organized knowledge underlying the practice is a
science
The elements of science
Concepts
Principles
Theory
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THE FUNCTIONS OF MANAGER
Planning
Selecting missions and objectives as well as the actions to
achieve them
Organizing
Establishing an intentional structure of roles for people to fill in
an organization
Staffing
Filling and keeping filled the positions in the organization
structure
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THE FUNCTIONS OF MANAGER
Leading
Influencing people so that they will contribute to organizational
and group goals
Controlling
Measuring and correcting individual and organizational
performance to ensure that event conform to plans
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PLANNING
Types of planning
Mission or purposes
Objective or goals
Strategies
Policies
Procedures
Rules
Programs
Budgets
“Selecting missions and objectives as well as the actions to achieve them “
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STEPS IN PLANNING
1. Being aware of opportunities
2. Establishing objectives
3. Developing Premises
4. Determining alternative courses
5. Evaluating alternative courses
6. Selecting a course
7. Formulating derivative plan
8. Quantifying plan by budgeting
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PROBLEMS WITH ORGANIZATIONAL LEVEL
Levels are expensive
Departmental level complicate communications
Numerous department level complicate planning and control
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FACTORS INFLUENCING SPAN OF MANAGEMENT
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ORGANIZING
Identification and classification of required activities
Grouping of activities necessary for attaining objectives
Assignment of each group to a manager with the authority to
supervise
Provision for coordination horizontally and vertically
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ASPECTS OF ORGANIZING
Creating an environment for entrepreneurship
Innovation and entrepreneurship
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STEPS IN ORGANIZING
Establishing enterprise objectives
Formulating supporting policies and plans
Identifying, analyzing and classifying the activities necessary to accomplish
these objectives
Grouping these activities in light of human and material resource available
Delegation of authority
Tying the groups together through authority relationship and information
flows
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REENGINEERING THE ORGANIZATION
The fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical
contemporary measures of performance, such as cost, quality,
service and speed.
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REENGINEERING THE ORGANIZATION
Fundamental rethinking on what the organization is doing
Radical redesign is reinvention
50 to 70 % of reengineering efforts fail to deliver the intended dramatic
results
Analysis and questioning of business processes
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STAFFING
Filling and keeping filled the positions in the organization structure
Number of manager needed in an enterprise depend upon size,
complexity of organization structure, the plans for expansion and the
turnover rate of managerial personal.
The management inventory
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ACTION BASED ON MANGER SUPPLY AND DEMAND
Selection
Placement
Promotion
Internal :
Training and development
Compensation
External :
Recruitment
Change in Company Plans
Outplacement
Layoffs
Demotions
Early Retirement
Training and development if
change in demand is
expected in future
Supply of Managers
High Low
De
ma
nd
fo
r M
an
age
rs Hig
hL
ow
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RECRUITMENT, SELECTION, PLACEMENT, PROMOTION …
Recruitment is attracting qualified candidate to fill
organizational roles
In Selection approach applicants are sought to fill a position
with rather specific requirements
In Placement approach the strength and weaknesses of the
individual are evaluated and a suitable position is found or
even designed
Promotion is a move within the organization to a higher
position that has greater responsibilities and required more
advanced skills
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SITUATIONAL FACTORS AFFECTING STAFFING
External factors:
Education: high technology used in some industries may require
extensive and intensive education
Socio-cultural environment: order taking attitudes
Legal-political: employment policies, etc.
Economic environment: competitive situation… demand and
supply of managers
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STAFFING IN INTERNATIONAL ENVIRONMENT
Three sources of staffing
Manager from home country
Manager from host country
Manager from third world countries
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SITUATIONAL FACTORS AFFECTING STAFFING
Internal factors :
Promotion from within the organization
The policy of open competition – Vacant position should be
opened to the best-qualified person available, whether
inside or outside the enterprise
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SELECTION PROCESS: TOOLS AND TECHNIQUES
Interviews
Tests: different types of tests are conducted …. Intelligence test,
proficiency test, vocational test, personality test…
Assessment center include psychological test, management
games, management situations, group discussions, oral
presentation, recommending actions, and preparing reports.
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DECISION MAKING
Decision making is selection of a course of action among alternatives
Organization level decision making involves many managers and that
final choice is based on a coalition among the managers rather than by
one at the top based on information fed to them.
A coalition is an alliance among several managers and stakeholders
(managers from line departments, staff departments etc…) who agree
about the organizational goal and priorities.
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COALITION ARE MADE BECAUSE …
1. Organizational goals are often ambiguous and operative goals
of the department are inconsistent
2. Managers do not have time, resources, and mental capacity
to identify all dimensions and process all information for
decision making
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REALITY …
Under one approach, decisions are made to satisfy rather than
optimize problem solutions. The coalition will accept a solution
that is perceived as satisfactory to all coalition members.
Managers are concerned with immediate problem and their
immediate solution. They don‟t expect a perfect solution in a
conflict laden and ill defined situation.
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“CHOICE PROCESSES IN DECISION MAKING”
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• Information is
limited
• Managers have
many constraints
Uncertainty
• Managers have
diverse goals,
opinions, values,
experience
Conflict
Adopt the first
alternative
that is acceptable
to the coalition
Satisfying
Conduct a simple,
logical search
Use established
procedures if
appropriate
Create a solution,
if needed
Search
Hold joint discussion
and interpret goals
and problems
Share opinions
Establish problem
priorities
Obtain social support
Coalition Formation
FIGURE: CARNEGIE MODEL
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Thank YOU!
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HAPPY READING …