nicmar management in 2

8/9/2019 Nicmar Management in 2

http://slidepdf.com/reader/full/nicmar-management-in-2 1/87

MANAGEMENT IN ORGANIZATION



LESSON 1

THE ENTERPRISE



Features of an Organization:

Statement of purpose

Values on which the organization will run

Translates objectives into action

Staffs to produce output



The purpose of an enterprise

Generate wealth

Success of an enterprise:

Efficiency of operations



Forms of business enterprise

Proprietary

Partnerships

Companies

Multinational Corporations



Who is an entrepreneur?

Undertakes an economic venture,

own, organizes, promotes & manages it

assumes the risk of business

& determines the end



The attributes of entrepreneurs

Identifies o opportunities

Influencing others to perform

A result oriented person

A strong desire to succeed

Understanding the feelings of others



The following are the types of entrepreneurs:

Small scale The first generation of industrialist

Sons of industrialist The children of first generation industrialist

Professional managers Individuals with professional qualification, who head a privateenterprise They run such enterprise as an entrepreneur

Public sector executives Individuals with professional qualification, who head a public

enterprise They run such enterprise as an entrepreneur



Structure of an enterprise

Board of Directors

They provide direction to an organization

Management Consists of CEO & his team

Managers

Members who contribute based on their functional expertize



Role of money:

Motivation

An exchange for the efforts

A means for raising the standard of living



LESSON 2

THE MANAGEMENT



What is Management?

Optimum utilization of resources,

to accomplish the organization goals

It is both an art & science.

Study of management knowledge is a science,

the application of this knowledge is an art



Functional areas of management

To accomplish the goals of the organization,

different types of activities have to be performed

like marketing, production, finance, purchase, human resources etc.

These activities are called as functions of management



Management Process

A sequential activity performed

Conversion of an input into an output

It is where value addition takes place

It should be efficient,



Management Techniques

Techniques are essentially ways of doing things

Types of techniques

Value Engineering

Benchmarking

PartneringBusiness Process Re-engineering



Value Engineering

Balance between cost, reliability & performance of product

Aims to reduce unnecessary cost

Focus is on task



Benchmarking

identifying the best practice in the industryCompares self performance with the benchmark,

Formulates an action plan to reach that state.

Aim is to improve performance



Partnering

Two or more organizations join together

To achieve specific business objectives

By maximizing the effectiveness of each participant’s resources



Business Process Re-engineering

Traditionally the businesses were focused on

Tasks, jobs, structure, but not on processes.

A business process is a value addition to an inputs to create an output

Re-engineering means focusing on core activities

& outsourcing the non-core activities



LESSON 3

DEVELOPMENT OF MANAGEMENT THOUGHT



Scientific Management Theory [Fredrick Taylor]

According to him there is no inherent conflict between labour & employers.Labour wanted more income, employers wanted more profit, & theconsumers wanted a better price

All of them could be benefited, only if the plant produced more..

Taylor felt that the real problem was in determining a fair day’s pay for a fair

day’s work. For this if a quantitative method could be evolved when aworker could know the basis of his wages & in which his income is moved upalong with the increase of efforts put in.

Taylor said that the onus to devise such methods rested on employers.



Human Relations Theory [Elton Mayo]

Mayo proved through his Hawthorne Studies in GE plant that If working conditions were improved, production goes up

Production goes up, if workers participate in change management

Management should accept the role of informal groups & informal leaders’.

informal leaders should be identified, accepted & involved in themanagement process.

Formal management group should be trained in human relations in order toachieve better production



Theory X & Y [McGregor]

Theory X is based on the following premises: People did not like to work basically Therefore they have to be told what to do.

We have to use threat to make them work

Theory Y was based on the following premise It is not that people do not or like work. They develop an attitude towardswork based on their past experience

People like to select goals for themselves if they see the possibility of somekind of reward in it [material or psychological].



Management System Theory [Fayol]

He stated that out of all activities of an enterprise the managerial activities isthe most important

Managerial activities consists of:Planning, Organization, Direction, Coordination & Control which exists in any kind & size of businesses.

According to Fayol, person responsible for management must have thefollowing managerial qualities: Physical / Mental / Attitude / Technical



Motivation Theory [Herzberg Theory]

He classified the factors that influenced their attitudes & performance &whose intensity & duration affected their work behaviour into

Hygiene factors includedJob / job security / work rules / promotions / incentives / leaves / serviceconditions / employment practices / etc.

Motivation factors includes: Attitudes / feelings about jobs / desire to excel / care & concern aboutquality / etc



Motivation Theory [Herzberg Theory] continued

Hygiene factors are necessary to create motivation, but arepowerless by themselves. This means that if hygiene factors areabsent in a job, employees will not feel motivated. But the besttechniques of motivation will not work if pay & employmentconditions are not adequate.

The lesson for management is that if you do not provide hygienefactors, you risk not having productivity & you do not expectmotivated workforce.However if you provide hygiene factors, it can ensure you in certaincircumstances that a job gets done in the quantitative senses.

But if we are looking for looking for quality, desire to excel, concern

for economy, care of the materials & equipment, then you need tocreate motivating environment

& this is what Herzberg called Management



NEEDS HIERARCHY THEORY [MASLOW]

Maslow in his study concluded that man was never contended, He stated that needs of man motivated him to work & these needs arose inhierarchical manner.

Needs were of following orders:Physiological / Security / Social / Esteem / Self-Realization

It is pursuit of needs that people keep working & keep striving to get more &more

Today’s motivators are likely to become tomorrow’s hygiene factors



MCKINSEY’S 7-S APPROACH

The seven S’s are:

Strategy / Structures / Systems / Style / Staff / Shared values / Skills It supports & similar to the framework of the managerial functions [planning /organizing / staffing / leading / controlling]

This approach has identified the following conditions for success in business A bias for action Closer to customers / clients

Productivity through people Autonomy & entrepreneurship Hands on, value driven Stick to knitting, what you know Simple form, lean staff Simultaneous loose tight properties



LESSON 4

MANAGEMENT PROCESS: PLANNING



Introduction

Planning is the first step in the management process.

Planning & Control go hand in hand

Decisions are the core of planning.

It is rational approach to accomplish the objectives of the organization



Mission

It is the purpose of an organization.



Plan: Projected course of action to accomplish the objectives States in details the activities to be carried , resources to be deployed, &time frame to accomplish the outputs



The following are the terms used in planning:

Objectives

States what has to be accomplished. Strategy Course of action with an intention to win.

Policy Framework within which decisions can be taken

Procedure Method of handling work in a chronological sequence

Rule It allows no deviation Applicable to all the employees

Program Has an objective / strategies / procedure / rules Is for an event [short-term]

Budget Statement of expected performance results in numerical terms It is a control device.



Levels of Planning

Following are the levels of planning in a construction firm

CorporateDone by CEO & his team

Project Undertaken to complete a project within the time, cost, & quality parameters

Site Done on daily basis at site



The following are the types of planning

Strategic planning It is long term planning Done by Corporate Office

Tactical planning It is short term. Done to meet new demands

Rolling plan Link between long & short term plan. It fits into the long term plan

Contingency planning Refers to stand by plan, incase the original plan does not go through



Principles of Planning

The Commitment Principle: The long range planning is planning for the future impact of today’s decision.Understand the impact of today’s decision on tomorrow.

Principle of flexibility Building flexibility into plans will lessen the danger of losses incurred throughunexpected events, but the cost of flexibility should be weighed against itsadvantages

Principle of navigational change The more the planning decisions commit individuals to a future path, themore important it is to check on events & expectations periodically & redrawplans as necessary to maintain a course towards a desired goal.



Conclusion:

The success of any plan depends not on the techniques but on the correctattitude of mind

Planning should always be associated with performance.



LESSON 5

MANAGEMENT PROCESS: ORGANIZING



Introduction

Bringing together the basic resources in an orderly manner

Done to accomplish organization objectives efficiently & effectively

The organizing process deals with creating s tructure



Creating a structure:

The following are the steps involved in creating a structure

The work is divisionized

Persons are assigned to perform this divisional work

Methods & procedures of handling work as well as role relationship are laid down.



The organization structure has logic behind it.

It emphasizes

Efficiency

Written procedures of work

Number of subordinates reporting to a senior

A chain of command

A channel of communication

The structure should be flexible to achieve results



Assigning duties

It comprises of following steps Determining the duties

Grouping duties

Assigning authority

Span of control



Departmentalization

The following are the approaches

By functions

By territory

By product

By customer:

Matrix organization



By functions

Organization structure is based on

functions of managementlike finance, production, marketing, etc.

Has advantages & disadvantages



By territory

In this type of organization

territory & functions are grouped together.

Example: Railways

Has its own advantages & disadvantages



By product

Product & functions are grouped together. Products should be of similar nature

Example: Tatas: Auto, Steel, Telecom, etc

Has its own advantages & disadvantages



By customer:

Customer & functions are grouped together.

Example: Bank.

We have separate sector for Corporate, agriculture, small scale industry, etc.

Has its won advantages & disadvantages



Matrix organizationTakes place in project work

An employee reports functionally to one senior, &

administratively to another senior



Organizational Chart

It is a pictorial presentation of the structure of the organization.

It shows

the organizational hierarchy,

reporting relationship,

status of various managers & various department



Span of control, Authority, & Delegation

Span of controlhow many subordinates a senior can handle

Authoritydecision making with respect to resources

Delegationassigning certain tasks to subordinates.It can be with or without authority



LESSON 6

MANAGEMENT PROCESS: STAFFING



Introduction

People are important resources to an organization Goals of the organization are achieved through people.

Success of an organization depends upon it quality of people. This si donethrough staffing

Staffing is having right people, with right skills at right time & at right places

It consists of the following: Manpower planning / Recruitment / Selection / Placement

WE WILL BE SEEING IN THIS DETAIL PERSONNEL MANAGEMENT



LESSON 7

MANAGEMENT PROCESS: MONITORING & CONTROLLING



Introduction

Before control can be exercised it is necessary to have the following:

Quantifiable & variables objectives

Plans & programmes with milestones are identified

Cost & time frame for activities to be undertaken

The organization structure with fixed duties in the hierarchies



The basic control process involves the following stages

Establishing standards

Measuring actual performance against standard at intervals

Taking corrective actions in case of deviation



Standards

Yardsticks of expected performance

Have it for critical activities

It should be preferably quantifiable

Measure performance against standard on a forward looking basis,so that deviation may be detected in advance

Deviations are corrected byredrawing plans, modifying goals, reassigning or clarifying duties etc



Types of control

The following are the types:

Production & operations controls

Inventory controls

Quality controls

Financial controls



Production & operations controls

Includes:

Employees performance

Machine performance



Inventory controls

Governs the levels of materials & supplies, goods in process & finished goods

Standards are based on optimal levels

that balancethe cost of carrying inventorywiththe costs of running out of stock



Quality controls

Assures the acceptable quality of goods or services produced.

A quality control standard specifieshow many complaints will be consideredas acceptable from customers



Financial controls

Focuses on the flow of money.

These controls regulate individual components of costs,likematerials personnel as well as total unit or average costsfor goods & services.



Critical control points

Set up standards & performance measurementthat really warn in advance ofimportant deviations

which strongly affect performance The following questions helps in identifying critical points

What are the most important goals of the department?Of all the things that could go wrongamong the people & activities,which ones would be the most damagingto the organization’s performance



Complexity of controls

In feedback the source of deviation is from output

In feedback loop system deviation occurs in process itself

In feed forward control system the deviation takes place in inputs



Features of a workable control system

Tailor make the controls

Control system should be quantitative, objective & verifiable

Flexibility should be built into the system

Should be economical, & cost effective & lead to corrective action

Controls should indicate the following critical points: Physical standards / Cost standards / Capital standards / Revenue standards / Program standards / Selected intangible standards



Budget as a control system

It is statement of expenses.Involved in accomplishing the objectives

Budgets are prepared based on past data

Zero base budgets

Budget is prepared with no past data



Human issues in control

Self-control

Value of good standards

Effective communication Good control improves rather than punish



Self-control

Allow the subordinate to set performance standards Hold him accountable for the outcome



Value of good standards

Employees readily accept the standardsthat have been systematically developed &that are demons ratable



Effective communication

The control system will work better,if there is a two way communication



Good control improves rather than punish

The real goal of control system isto improve performance & not punish Instead of blamingwhen standards are not accomplishedmutually explore what went wrong in the process



LESSON 8

MANAGING PEOPLE



Introduction

The process involved in managing people are:

Leadership

Communication

Authority

Delegation



The leader does the following with respect to:

Goal:

Plans strategies & makes programmesSecures facilities & infrastructure

Process

Shows how the goal can be accomplished Environment:

Establishes friendly atmosphere within whichpeople can work together without fear, anxiety or insecurity

People:Helps individuals to taste success, seek excellence, & acceptdiscipline



The following are the techniques of good leadership

Giving appreciation

Disbursing punishment

Communicating

Demonstrate [to subordinate that you can do it better]

Use of power

Knowledge of the organization

Work with consensus

Getting the work done

Practice general rather than close supervisionDelegate & know when to delegate & to whom



Characteristics of Communication

Effective & efficient to accomplish the organization goals Have purpose.Can be Formal or Informalformal: vertical [upward / downward]informal: grapevine



Types of Communication

Written Verbal Non-verbal



The communication process consists of

Input: Sender

Process: Medium [face to face [non-verbal, verbal] written

Output: Receiver



The following are the reasons why communication becomes ineffective:

Unclarified assumption Language Too many layers Omission [both sender & receiver withholds information] Untrustworthiness of the communicator Poor retention Inattention Lack of feedback



Art of listening

We listen through our eyes, & hear through our ears

For good listening observe the following rules Put the talker at ease Show your interest Be patient Ask questions Allow other to talk. You don’t talk



Authority

It is the legitimate right to direct & influence the performance of others It is right to expect performance It is power in position,

Authority relationship may be perpendicular or horizontal Perpendicular relationships are the line authority. They are accountable for accomplishing the objectives While staff authority [horizontal] help the line authority to work mosteffectively



Delegation

Is with or without authorityWith authority Is empowermentWithout authority is only activity

One delegates non-core duties to subordinates. The following are the guidelines of delegating: To knowledgeable Who shows initiative Should set chain reaction Builds mutual relationship

One is still accountable, for the outcomes of non-core duties one delegates



THANK YOU VERY MUCH FOR YOUR PATIENT LISTENING

MY BEST WISHES

nicmar management in 2

Documents