INNOVATIVE MANAGEMENT FOR TURBULENT TIMES

1. INNOVATIVE MANAGEMENT FOR TURBULENT TIMES

2. Definitions of management • The art of getting things done through others. • Manage men tactfully. • Management is the attainment of organisational goals in an effective and efficient manner through planning, organising, leading and controlling organisational resources.

3. Difference between efficiency and effectiveness • effectiveness is about doing the right things • Effectiveness is the degree to which the organisation achieves the goals • efficiency is about doing the things in the right manner • Efficiency is the use of minimal resources to produce desired output • Efficiency (Means) Effectiveness (Ends) • Low wastages of resources high attainment of goal

4. Functions of management • Planning : Identifying goals and resources for future organisational performance • Organizing : Assigning tasks, delegating authority and allocating resources • Leading : The use of influence to motivate employees to achieve goals • Controlling : Monitoring activities and taking corrective action when needed

6. Three levels of management • Top level management • Middle level management • lower level management

7. Top level management • Develops and reviews long range plans and strategies • Evaluates overall performance of various departments and ensures cooperation • Involved in selection of key personnel • Consults subordinate managers on subjects or problems of general scope

8. Middle level management • Makes plans of intermediate-range and prepares long range plans for review by top management • Analyzes managerial performance to determine capability and readiness for promotion • Establishes departmental policies • Reviews daily and weekly reports on production or sales • Counsels subordinates on production or other problems • Selects and recruits personnel

9. First level management • Makes detailed, short-range operational plans • Reviews performance of subordinates • Supervises day-to-day operations • Makes specific task assignments • Maintains close contact with employees involved in operations

10. Management skills • Technical skills: the ability of a person to carry out a specific activity. One needs to have knowledge of methods, processes and procedures. E.g. engineers, computer specialists, accountants etc. • Human skill: the ability to work with and through other people. Such a person can create an atmosphere in which subordinates feel free to express themselves without fear. He can encourage them to participate in planning. He is responsive to the needs and motivations of others.

11. Conceptual skills: ability of a person to think and conceptualize abstract situations. The ability of a person to find solutions to problems in ways that would benefit the organization. • Time skill: the art of arranging, organizing, scheduling and budgeting one’s time for the purpose of generating more effective work and productivity.

13. Types of managers • General managers • Functional managers • Frontline managers

14. General managers • Responsible for the overall performance of an organisation or one of its major self-contained subunits or divisions • They can be at corporate level or at business level.

15. Functional managers • Responsible for leading a particular function or a subunit within a function. • They motivate, influence and direct others within their areas. • They develop functional strategies and draft plan in their areas to fulfill strategic objectives set by business level as well as corporate level managers.

16. Frontline managers • Who manage employees who are themselves not managers. • They are critical to maintaining the performance of an organisation. • They plan how best to perform the tasks of their units. • They organise tasks within their teams, monitor the performance of their subordinates and try to develop their skills.

17. Mintzberg’s 10 managerial roles • Interpersonal Figurehead Leader Liaison • Informational Recepient Disseminator Spokesperson

18. Decisional Enterpreneur Disturbance handler Resource allocator Negotiator

19. INTERPERSONAL • Figurehead: Performs ceremonial and symbolic duties such as greeting visitors, signing legal documents. • Leader: Direct and motivate subordinates, training, counselling and communicating with subordinates. • Liaison: Maintain information links both inside and outside organization; use mail, phone calls and meetings.

20. INFORMATIONAL • Recepient: Seek and receive information, scan periodicals and reports, maintain personal contacts. • Disseminator: Forward information to other organization members; send memos and reports, make phone calls. • Spokesperson: Transmit information to outsiders through speeches, reports, memos.

21. DECISIONAL • Enterpreneur: Initiate improvement projects, identify new ideas, delegate responsibility to others. • Disturbance handler: Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environmental crises. • Resource allocator: Decide who gets resources, scheduling, budgeting, setting priorities. • Negotiator: Represent department during negotiation of union, contracts, sales, purchases, budgets; represent departmental interests.

22. Management as an art • Art requires knowledge and skill in management also manager applies his knowledge and skills to coordinate the efforts of the people to integrate the processes in his organisation. • Management looks for concrete practical results. • Management is creative like an art as in new situations new decisions are taken by the manager. • It is a personalized process. Every manager have different point of view in seeing the problem and handling them. • To master in management one needs sufficiently long period of experience in managing.

23. Management as a science • In science there are some rules which we are following likewise in management also there are underlying principles and theories which can be used as guidelines for various tasks. • Management deals with the systematic knowledge of acquiring the skill of getting things done through others. Management has become a discipline which is more organizing and systematized. • Science has spread to all areas throughout the world and management is an accepted science as a way of solving problems and taking decisions. • Management deals with human beings, it is considered a social science. • Scientific attitude is essential for manager in problem solving and decision making.

24. DEFINITIONS OF ORGANISATION • Organisation is a system of co-operative activities of two or more persons. • Organisation is the process of dividing up of the activities which are necessary to any purpose and arranging them in groups which are assigned to individuals. • Organisation is essentially a matter of relationship of man to man, job to job and department to department.

25. Principle of organisation • Principle of unity of objective • Principle of efficiency • Principle of span of control • Scalar principle • Principle of delegation • Principle of parity of authority and responsibility • Principle of absolute responsibility

26. Principle of the level of authority • Principle of the unity of command • Principle of departmentation • Principle of balance • Principle of flexibility • Principle of continuity • Principle of leadership facilitation

27. TYPES OF ORGANISATIONS • Line organisation • Functional organisation • Line and staff organisation

28. Line organisation • It is the simplest and oldest form of organisation. • It is also known as military type of organisation. • In this type of organisation, business unit is organised not according to functions but on the basis of responsibility and authority. • Authority passes from the top to the bottom uninterrupted. • Higher the level, greater is the authority • Lower the level, less is the authority • Authority flows from the top to bottom in a line while responsibilty flows in the opposite direction.

29. CHART OF LINE ORGANISATION CEO PRODUCTION MANAGER SUPERVISORS FOREMAN

30. Advantages of line organisation • Simple to understand • Fixed authority and responsibility • Quick decisions • Growth of skills • Safeguarding and growth of discipline

31. Disadvantages of line organisation • Lack of skilled employee • Over burdened employee • Difficulties in division • Difficulties of communication and co-ordination • Corruption • Neglect of planning and research • Difficulties of transfer of employees

32. FUNCTONAL ORGANISATION • It is divided according to the type of function involved. • Every person has to perform a special task under this organisation. • Each function is done by experts. • Expert is responsible for smooth and efficient working of the whole organisation not only for the individual department.

35. Advantages • Specialisation • Large scale production • Scientific recruitment and training • Flexibility • Decentralisation of authority • Growth of unit • Co-ordination

36. Disadavntages • Expensive • Violation of the unity of command • Difficulty in locating responsibiliies • Lack of discipline and control • Conflict of authority • Absence of quick decisions • Excess of clerical work

37. LINE AND STAFF ORGANISATION • Line officials do managerial work as usual but they are assisted by the experts. • Line officers have the authority to issue directives while staff experts have the authority to give advice and directives. • Secretary and legal advisor

40. Advantages • Simplicity • Co-ordination • Balance • Flexibility • Relief to the line authority • Blending of abilities of line and staff • Prompt decisions • Easy location of responsibility

41. Disadvantages • Conflict among officials • Expensive • Evading responsibility • Neglect of line authority suggestion • Carelessness among the line

42. Closed system • Closed system are sets of interacting elements operating without any exchange with the environment in which they exist. • Two basic characteristics of a closed system are: • It is perfectly deterministic and predictable. • There is no exchange between the system and the external environment. • E.g. pool table

43. If we have knowledge of following conditions then we can easily predict where each ball will come to rest. • The position of every ball on the table • The elasticity of the bumpers • The coefficient of friction between the balls and the table • The force with which the cue ball is hit • The direction of the cue ball • The type of spin on the cue ball

44. Open system • Open system concept stressed the need for flexibility and adaptability in organisational structure and the mutual interdependence between the organisation and its external environment. • Open system is a set of elements that interact with each other and the environment and whose structure evolves over time as a result of interaction. • E.g. in pool table, as a player strikes the ball his or her opponent may pick up a ball from the table. This disturbs the game and it is impossible to predict where the ball will come to rest.

45. FORMAL Vs INFORMAL ORGANISATION FORMAL INFORMAL Official in nature Authority and responsibility Position Delegated by management Rules Reward and penalties Unofficial in nature Power and politics Person Power is given by group Norms Sanctions