management definitions roles skills
Download
Skip this Video
Download Presentation
Management: Definitions, Roles & Skills

Loading in 2 Seconds...

play fullscreen
1 / 61

Management: Definitions, Roles & Skills - PowerPoint PPT Presentation


  • 159 Views
  • Uploaded on

Principles of Management. Management: Definitions, Roles & Skills. Management: Definitions.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Management: Definitions, Roles & Skills' - kevyn-knox


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
management definitions roles skills
Principles of Management

Management: Definitions, Roles & Skills

[email protected]

slide2
Management: Definitions
  • “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aim(s) viz. to create a surplus(s).” ….Weihrich & Koontz
  • “Management is not an absolute; rather it is socially and culturally determined. Across all cultures and in all societies, people coming together to perform certain collective acts encounter common problems having to do with establishing direction, coordination and motivation. Culture affects how these problems are perceived and resolved.” …The Art of Japanese Management by R. Pascale & A. Athos .

[email protected]

slide3
Management: Definition …ctd.
  • Applies to and throughany kind of organization
  • Applies to Managers at all levels
  • Concerned with “Doing the right things right at all times”:
    • Effectiveness: Achievement of objectives (Right Things);
    • Efficiency: Achieving those objectives with least amount/ sacrifice of resources (Things Right);
    • 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
  • Collective, cohesive and consistent human effort towards accomplishing a common objective.

[email protected]

slide4
Management: Definition …ctd.

Political

Regulatory

Economic

Organization

Societal

Globalization

Technological

Additionally, Managers need to factor in external environmental forces:

For maximum benefit to the organization

[email protected]

slide5
Management: Roles & Skills
  • Management - what managers do:
    • Fredrick Taylor’s path-breaking “scientific approach”
    • Henri Fayol’s classical definition of ‘functions’, now modified to:
      • Plan -- Organize -- Lead(Command&Coordinate) -- Control
    • Mintzberg’s map of managerial ‘roles’:
      • Interpersonal + Informational + Decisional
    • Katz’s interpretation of ‘skills’:
      • Technical / Human / Conceptual
  • Management – ‘get things done through others’:
    • Leadership: “The ability to influence a group towards achievement of goals”.
    • Motivation: “The willingness to exert high level of effort towards goals”
    • Communication:”The transference and understanding of meaning”

[email protected]

slide6
Management: roles & skills …ctd.

Managerial Roles (Mintzberg)

  • Role Description Examples
  • Interpersonal
  • Figurehead 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
  • Informational
  • Monitor nerve centre and interpretator Reports
  • Disseminator networking within the organization Meetings etc.
  • Spokesperson Transmit intent to outsiders; expert Board Meets
  • Decisional
  • Entrepreneur Opportunity finding& reacting Strategy Plan
  • Trouble shooter Handling unexpected disturbance Contingency
  • Resource allocator Initiating/approving changes Budgeting
  • Negotiator Getting best deal for Organization Contracts

[email protected]

slide7
Management: roles & skills

Board

Conceptual

Exec.

HUMAN

Mgr.

Technical

Supr.

Managerial Skills(Katz & others)

  • Technical Skills:

Application of specialized knowledge or expertise acquired though formal training & its use.

  • Human Skills:

Ability to work with people, understand and motivate groups & individuals.

  • Conceptual Skills:

Mental ability to recognize, analyze, diagnose and think through complex situations.

Skills Needed

[email protected]

principles of management 2

Principles of Management 2

Management: A Systems Approach

[email protected]

slide9
ENVIRONMENT

input

Transformation

process

output

Feedback (Reenergizing the system)

System Boundary

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)

[email protected]

slide10
Systems approach to Management …ctd.

Systems Concepts

  • System Boundariesand 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.
  • Subsystem Interfaces and Interface Problems

Sub-System 1

Sub-System 2

Sub-System 3

[email protected]

slide11
Systems approach to Management …ctd.

Outputs and Inputs

  • Systems produce Outputs from Inputs – i.e. the Inputs are converted to Outputs.
  • Outputs of one subsystem become inputs to another subsystem.
  • Outputs must adhere to standards to be useful or 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

[email protected]

slide12
Systems approach to Management …ctd.

“Inputs”: 5 Ms of Management

  • Inputs or the resources managers deal with are:
    • Man: human resources, both inside and connected with an organization;
    • Materials: goods (hard & software, processed or semi-finished) and services required to create the sellable end product;
    • Machines: technology and expertise deployed towards the transformation process;
    • Methods: systems, procedures and processes seamlessly put together for the transformation;
    • Measurement: score-keeping and in-process monitoring continuously with due feedback to keep on-course on time.
  • “Money” is required for generating all theses Ms – managers need to acquire, deploy, generate and distribute money as a primary need for business!

[email protected]

slide13
Systems approach to Management …ctd.

Output for “Stake-holders” in Business:

“Stake”: Something wagered or risked;

an interest in an enterprise with contingent gain or loss …Webster ‘s dictionary

“Holders” who have stake in Business:

  • Shareholders: are the owners. They have put in their money in the enterprise, expecting better returns from it than from other ventures;
  • Society: includes the State, provincial and local governments for the improvement of ‘quality of life’ of its citizens;

[email protected]

slide14
Systems approach to Management …ctd.

Output for “Stake-holders” in Business …ctd.

    • Suppliers: continuity of their enterprise depends on the success of the customer enterprise;
    • Customers: require the goods and services provided by the enterprise, better than than those from its competitors. The enterprise is, in turn, a supplier to its customers;
    • Employees: livelihood depends on the progress and success of the employing enterprise;
  • There is a “freedom of choice” (for association) between each of these stake-holders and the enterprise in the longer term:
    • But they sink or swim together in the shorter term
    • Length of term definition varies with individuals!

[email protected]

slide15
Systems approach to Management …ctd.

Management as a system transforms inputs:

  • by theprocess of
    • Planning
      • + Organizing
        • + Staffing
          • + Leading
          • + Controlling

to accomplish certainpre-determined,(as derived from stakeholder needs) goals or objectives

[email protected]

slide16
Systems approach to Management …ctd.

Stakeholders

Shareholders;

Society; Customers;

Employees; Suppliers

Man, Machine

Material,

Method,

Measurement

Product/Services,

Profits,Customer &

Societal satisfaction,

Other Long-term Goals

Organizing

Inputs

(Goal

Oriented)

Outputs

(External

To

Orgnzn.)

Planning

Staffing

Controlling

Leading

Stake holder Feedback (reenergizing the system)

[email protected]

EXTERNAL ENVIRONMENT(Opportunities, Constraints)

principles of management 3

Principles of Management 3

Management Process

First Step: Planning

[email protected]

planning
Planning
  • Planning involves selecting objectives or goals and the course of actions to achieve them:
    • Provides the bridge to take us from where we are to where we want to go;
    • Is a rational approach to achieving pre-selected objectives - based on innovation, knowledge and purpose;
    • Decision making in choosing the best from alternative courses of action and is integral to planning;

[email protected]

plans as foundation of management
What kind of resources needed?

What kind of people

& org. structure

to have?

Plans

How to lead them

to reach planned

goals?

How to control in

case of deviation

from plan ?

Plans as foundation of Management

[email protected]

The primacy of Planning

types of plans
Types of Plans
  • Mission / Purpose
    • The basic function or ‘reason for existence’ of an enterprise/ organization

Case in point:Mission of Indira Institute

“To train our students to become the best business minds and entrepreneurs today, who will lead their companies successfully into the future tomorrow , locally, nationally and globally.”

[email protected]

type of plans cont d
Type of Plans (Cont’d)
  • Objectives/ Goals
    • The 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 and adoption of a course of action
    • Gives a frame work for linked action-plans, communicated systematically to guide thinking and actions.

[email protected]

types of plans cont d
Types of Plans (cont’d)
  • 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 on circumstances thus encouraging initiative within limits and situational adjustments;
    • Issues with “Policy”
      • Seldom documented in writing
      • Subject to interpretations

[email protected]

types of plans cont d1
Types of Plans (cont’d)
  • Procedures
    • Plans that are chronological sequences of required actions: task-oriented in nature;
    • Cuts across department boundaries (sub-systems) in an organization: e.g. customer complaint 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 discretion
      • Caution: rules (and procedures too) limit initiative!

[email protected]

types of plans cont d2
Types of Plans (cont’d)
  • Programs
    • Action plans (mainly non-routine or for changed activities) including, task assignments, steps to be taken, resources to be 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 are a complex of (sub)goals, policies, rules and other elements necessary for the course of action e.g. obtaining ISO certification.

[email protected]

types of plans cont d3
Types of Plans (cont’d)
  • Budgets
    • A statement of expected results expressed in “Numerical terms” e.g. financial operating budget = “profit plan”;
    • Budgets enforce precision in thinking:
      • Making a budget is ‘planning’ by itself;
      • Encourages innovation – a “different” way to work
    • Budgets serve for ‘Control’:
      • Enforces discipline in execution of plans;
      • Instills cost consciousness;
      • Makes people (constantly) plan!

[email protected]

steps in planning
Being aware of

challenges

Setting Goals/

Objectives

Planning premises

Identifying

alternatives

Market, Customer’s

wants, Competition,

Own strengths

& weakness

What to accomplish

& when

Internal & external

Environment/conditions

Formulating

Supporting

plans

Budgeting

(Numberizing Plans)

Comparing &

choosing an

alternative

e.g., Sales budget

Operational Expense budget,

Capital expenditure budget

e.g., plan to buy

Equipment, recruit & train

Employees, develop product etc

Decision

making

Steps in Planning

[email protected]

the planning process
The Planning Process
  • 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 run their course – requiring ‘commitments’:
    • Thus “decisions today” are key to good plans;
    • Long-term plans reap benefits of good short-term plans.

[email protected]

steps in planning1
Steps in Planning

Being aware of

Opportunity

Setting Goals/

Objectives

Considering, Market,

Competition, Customer’s

wants, Own strengths

&weakness

What to accomplish

& when

Objective = Important end towards which activities

are directed; therefore needs verification at the end

of the plan period.

[email protected]

hierarchy of objectives org levels
Mission

Overall

Objectives &

Key result areas.

Divisional objectives

Departmental objectives

Individual objectives

Hierarchy of Objectives& Org. Levels

Objectives set end results – they need to be supported by a hierarchy of sub-objectives, duly networked through the organization to avoid discord and wasted effort.

[email protected]

hierarchy of objectives org levels ctd
Hierarchy of Objectives& Org. Levels …ctd.
  • The Organizational Objectives is deployed into the objectives of :
    • Divisions Departments  Individual objectives;
    • The ‘cascade’ principle: seamless flow;
  • Mutual support & interlocking of goals is essential
    • Managers must ensure that the components of the network fit each other;
    • Departments/divisions can be ‘blind-sided’.

[email protected]

hierarchy of objectives org levels ctd1
Top-down

Approach

Mission

Overall

Objectives &

Key result areas.

Bottom-up

Response:

The result

Divisional objectives

Departmental objectives

Individual objectives

Hierarchy of Objectives& Org. Levels …ctd.

While setting Objectives, ideally, Top Management should get information / ‘buy-in’ from lower levels to set realistic goals for a good result.

[email protected]

key result areas kra
Key Result Areas (KRA)
  • Are areas in which performance is essential for the success of an enterprise
  • Examples of ‘generic KRA’s:
    • 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 & attitude and public responsibility.

[email protected]

management by objectives mbo
Management By Objectives (MBO)
  • A comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizations’ and individual objectives:
    • Set-out by Peter Drucker in 1954;
    • Integrated to personal performance appraisal by Douglas McGregor in 1957;
    • Has formed the basis for many theories on motivation;
    • Has been criticized for introducing a short-term focus and undesirable behaviour;
    • Currently viewed as a ‘way of managing’ – not a specific tool.

[email protected]

weaknesses of mbo
Weaknesses of MBO
  • Emphasis on:
    • short term at the expense of long term
    • “Results” over “Process”
    • Individual over collective effort
  • Failure to grasp and deploy the concept of “seamless cascade”
  • Difficulty in setting agreed, harmonized goals
  • Danger of inflexibility

[email protected]

planning premises strategies
Planning Premises & Strategies

Setting Goals/

Objectives

Planning premises

Identifying

alternatives

Comparing &

choosing an

alternative

What to accomplish

& when

Decision

making

Internal & external

environment

Strategic Planning Process

Strategy= determination of the purpose / the basic long-term

objectives; the adoption of courses of action and

allocation of resources required to achieve the aims.

[email protected]

planning premises strategies ctd
Stakeholder

Wishes &

Shareholder

demands

Current

External

situation

External

Opportunity

& Threat

Forecast

External

situation

Management

Orientation

Enterprise

Profile

Key success factors &

Alternative Strategies

Purpose &

Major objectives

of enterprise

Current

resource

situation

Internal

Strengths &

Weakness

Strategic

choice

Planning Premises & Strategies …ctd.

The Strategic Planning Process

[email protected]

planning premises
Planning Premises

Porter’s Five Forces : an

Model for analysis of the

Externals environment.

[email protected]

planning premises forecast of demand
Planning Premises: forecast of demand
  • Estimate of future demand is made by qualitative methods, time-series methods and/or causal methods:
    • Qualitative relies on judgement of experts to translate to quantities;
    • Time-series  statistically interpolate demand on historical data;
    • Causal method  seek co-relation on cause and effect basis between two (or more) variables to quantify demand;
    • However, all forecasting methods are limited by:
      • Handling of un-quantifiable factors e.g. national pride
      • Unrealistic assumptions fuelled by a desire to succeed
      • Excessive data required (often unobtainable) to make accurate forecasts
      • Uncertainty with environmental changes: Technology, Govt. Policy, International alignments, New materials/sources, Climate etc.
    • Coping with uncertainties require:
      • Sensitivity analysis & “What if” scenarios (trust instinct!);
      • Planning for contingencies – with defined cut-in milestones.

[email protected]

generic strategy
Customer

Relationship

Company

B’marking

Partnering

Supplier

Competitor

Lean Management

Generic Strategy
  • Competitive Advantage
  • Cost Leadership:
  • To continually work reducing
  • the cost prices of products.
  • Supplier Q-C-D has very high
  • priority.
  • Differentiation:
  • To constantly offer innovative
  • and unique solutions. Supplier
  • technology & quality has focus.
  • Customization:
  • To offer required services in the
  • required manner is the focus.
  • Speed and flexibility important.

Ultimate competitive position:

- position w.r.t major Customers

- K.S.Fs of Competitors

- leveraging of suppliers

[email protected]

generic strategy bcg matrix red marketing perspective blue financial perspective
Cash Source

Hi

Lo

Hi

Hi

STAR

???

“Hold”

“Build”

Market Growth rate

Cash Use

Cash Cow

DOGS

“Divest”

“Harvest”

Lo

Lo

Lo

Hi

Relative Market Share

Generic Strategy: BCG MatrixRed: Marketing Perspective; Blue: Financial Perspective

[email protected]

planning premises strategies ctd1
Comparing &

choosing an

alternative

Decision

making

Deployment (MBO etc.)

Formulating

Supporting

plans

Budgeting

( Numberizing Plans)

Say, Sales budget

Operational Expense budget,

Capital expenditure budget

Say, plan to buy

Equipment, recruit & train

Employees, develop product etc

Planning Premises & Strategies …ctd.

Decision Making = is the core of the planning process; a plan

does not come into being unless a ‘decision’ i.e. certain

commitments of resources, managerial time and money

are made and risks are taken.

Caution: A “Plan” is not intentions and should not suffer from

“Analysis Paralysis”.

[email protected]

decision making
Decision Making
  • 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 limiting factors, ‘road-blocks’ to each effective (‘right thing’) alternative – then finding a ‘solution’ with least sacrifice of resources (‘thing right’):
    • Factors: quantitative, qualitative/intangible;
    • Finding solutions:
      • marginal analyses – benefits with incremental inputs;
      • cost-effectiveness – assessment of benefits over costs.

[email protected]

decision making ctd
“Experience”: good teacher and useful when

routine/repeat situations arise under similar

circumstances. Without due analysis of the

conditions, mistakes tend to repeat or a poor

fit results.

“Research & analysis”: the approach is in at first

understanding the problem (‘half the solution’!),

then finding relations between various factors

which hinder or foster goal attainment. This is a

structured, analytical approach quantitative or

otherwise.

“Experimentation”: arguably, the best technique

to use, particularly when either experience or

rationale is lacking/limited. However is expensive

and ‘success/failures’ are magnified, results are

subject to interpretational errors.

Decision Making…ctd.

How to select

Amongst the

Alternatives ?

[email protected]

decision making ctd1
Decision Making…ctd.
  • Decision making takes place under varying degrees 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 risk profile for each alternative path. In the absence of defined probabilities, estimates can be used.
    • Decision trees: the outcome (measure pre-decided e.g. cost or time) of every step in the decision is charted and a course selected on the most favourable 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)

[email protected]

decision making ctd2
Decision Making…ctd.
  • Flow Charts: as a process-guide to taking a decision and helps as a check-list of key variables, the sequence in which they fall and the interrelations. Key to making a choice or re-examining the path taken are also indicated as 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 for managers to use their time more effectively for decision making of semi-structured tasks – by providing alternative evaluations. They focus on the process of decision making, taking data provide by the management information systems in enterprises.

[email protected]

slide46
Principles of Management 4

Management Process:

Organizing for results

[email protected]

nature of organizing
Nature of Organizing
  • Organizing may be broadly defined as:
    • The identification and classification of required activities;
    • The grouping of those activities towards attaining their set objectives;
    • The assignment of those groupings to a responsible manager, duly empowered;
    • 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

[email protected]

nature of organizing ctd
Firm Infrastructure

Human Resource Management

Margin

Support Activities

Technology Development

Procurement

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

Service

Margin

Primary Activities

Nature of Organizing …ctd.

The Business OrganizationModel: “Value Chain” (Porter,1985)

The margin reflects the reward for the risks run by the company.

[email protected]

All activities together need to generate ‘value’ greater than the sum of its costs.

nature of organizing ctd1
Nature of Organizing …ctd.

The Value Chain: “Primary Activities”

  • Inbound Logistics:relate to receiving, storing and disseminating inputs;
  • Operations:associated with transformation of inputs into final product form;
  • Outbound Logistics:relate to collecting, storing and physically distributing the products to buyers;
  • Marketing & Sales:relate to advertising, Promotion, sales, distribution-channel selection & management and Pricing;
  • Service:associated with enhancement or maintenance of product value over life;

[email protected]

nature of organizing ctd2
Nature of Organizing …ctd.

The Value Chain: “Support Activities”

  • Procurement: relates to the function of purchasing inputs used across the firm’s primary and support activities;
  • Technology Development: relates to know-how, processes & procedures, ‘technology’ embodied in the product design and delivery. Most activities have their own sub-set of technology;
  • Human Resource Management: directed at recruiting, training, developing and compensating all personnel;
  • Firm Infrastructure: associated with serving and supporting the firm as a whole, with the company as its customer eg. Finance & accounting, Quality;

[email protected]

nature of organizing ctd3
Nature of Organizing …ctd.
  • Most practicing mangers would translate this “value 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 but arising spontaneously as people associate with each other”.

[email protected]

nature of organizing ctd4
Hierarchical levels

#

#

$

$

$

#

Span of control

# Office Bridge Team

$ Car pool

#

Nature of Organizing …ctd.

The building block of an organization

is the Department: a group charged

with independent task & responsibility.

#

[email protected]

nature of organizing ctd departmentation
Nature of Organizing …ctd.“Departmentation”
  • Grouping activities & people into departments makes it conceptually possible to expand organizations to an infinite degree.
  • Different patterns have been successfully used to group activities:
    • By simple nos. is a simple method – works well for the lowest levels where work is routine, uniform and non-specialized; time-grouping is an extension of this method where shift-working is required;
    • By enterprise functions – embodies what enterprises typically do e.g. Production, Engineering, Sales etc. This method, defined by F.W.Taylor, is arguably the most prevalent method still used.

[email protected]

departmentation ctd
“Departmentation” …ctd.
  • By territory or geography – is very common when the geographical spread is wide. It was a device introduced to speed 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 primary interest 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: Steel Melting, Wire-drawing etc.
  • By Product Lines – has evolved with enterprises becoming “multi-line” with ‘function’ needing adaptation/integration to suit specific products e.g. Tata Motors: Passenger Vehicles / Commercial vehicles

[email protected]

departmentation ctd1
“Departmentation” …ctd.
  • By ‘grid’ control – in essence combining the ‘functional’ and the ‘product-line’ patterns to best effect. Functional excellence is not subjugated to Operational ease. In ‘projects’, this serves to bring together the diversity of skills required into one team.
  • The Strategic Business Unit: companies today are organizing themselves as ‘companies within a company’ to allow for maximum flexibility and freedom of operations, especially when the products/businesses are unconnected e.g. General Electric. Generally, SBU’s have:
    • Their own Missions, Goals and Strategies;
    • Distinct and definable set of competitors;
    • Deploy and manage resources in key areas;
    • A reasonable ‘size’.

[email protected]

slide56
“Departmentation” …ctd.

Example of “Grid Control” & S.B.U’s

C.E.O

Qual.

HRM

BU 1

BU 2

Finance

G/H.R

G/H.R

I.R.M

I.S.O

Plant 1

Ind.

Recr.

Sin.

T&D

[email protected]

slide57
Nature of Organizing …ctd.

Span-of-Management

  • The purpose of organizing is to make human cooperation effective and is limited by:
    • the number of persons a manager can ‘supervise’ effectively and efficiently;
    • while the total number is dictated by the quantum of work/ nature of task/spread etc. Thus the two dimensions, “Level” (depth) and “Span of control” (width) are interrelated .
    • The reason for creating Levels of organization is the limitation in the span of control. “Effective span” is influenced by:
      • Training/skill of subordinates and personal contact required;
      • Clarity of delegation of authority;
      • Clarity of plans, use of objective standards and communication techniques;
      • Rate of change;
      • Maturity and experience of the manager and organization.

[email protected]

slide58
Span-of-Management …ctd.
  • Levels, per se, are not desireable:
    • They are expensive – as they increase, both infrastructure costs and staffing tends to increase;
    • Real work is accomplished at the ‘gemba’ (Japanese: workplace) where the actual value-addition/transformation takes place. The contribution of levels on top are not directly co- relatable, thus best avoided;
    • Communication become complicated – omissions, filterations and misinterpretations lead to wasted and misdirected effort;
    • Planning and control become tortuous, requiring complicated coordination and alignment between levels.
  • Studies reveal that between 8 to 10 people at ‘higher’ levels and upto 15 at lower levels is a good “span”. Increasingly, enterprises are attempting to cut back levels to 5 or less.

[email protected]

management principles
Management Principles
  • Developed by Henri Fayol: 

1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.

2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.                                                              

3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from only one manager.

5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.

[email protected]

management principles ctd
Management Principles (ctd)

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.

8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.                                                                                                    

[email protected]

management principles ctd1
Management Principles (ctd)

10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.                                                                          

11. EQUITY: All employees should be treated as equally as possible.

12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.                                                    

14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

[email protected]

ad