Managers Management Organizations.

Managers perform Management in the Organizations

Organizations ?

Organization

An entity where 2 persons or more working together for a common purpose

Organizations NAMES ?

An entity where 2 persons or more working together for a common purpose

People Purpose Process (POLCA)

Egyptian Pyramids Massive Stone Design built 4500 years ago 2.3 mil stone blocks

Egyptian Pyramids Base 230 m long Height 146 m Built using rollers, ropes and levers

Great China Wall 688 BC to 1644 AD 300 yrs 500 KM Total 6000 KM

Great China Wall Base 20 feet wide Top 11 feet wide Height 7 to 37 feet All made by Hands

Great China Wall To mark Territories To defend the area

People / Managers Perform To achieve Common Goals Common Purpose

People / Managers Achieve goals Using Management Process(POLCA)

Manager is the one who achieve goals By working with the people or through people

Managers Management Organizations.

Manager is the one who achieve goals By working with the people or through people

Managers Management Organizations.

Managers perform various Roles ! (Henry Mintzberg)

Roles
Inter-personal Informational Decisional

Interpersonal Role
Figurehead Leader

Interpersonal Role
Involves developing and maintaining positive relationship with others !

Informational Role
Monitor Disseminator Spokesperson

Informational Role
receiving and transmitting info to other org. units.

Decisional Role
Entrepreneur Disturbance Handler Resource Allocator Negotiator

Decisional Role
involves making significant decisions that affect the organization !

Managers perform various Functions ! (Henri Fayol)

Management is a process of carrying POLCA Functions to achieve organizational goals.

Good Managers perform these POLCA functions with Efficiency and Effectiveness

POLCA Functions
Planning Organizing Leading Controlling Assurance

Management Functions

Management Functions

Management
Henri Fayol Edward Deming Henry Mintzberg

While performing Managers use various Skills !

Key Management Skills !

Technical Skills Human Skills Conceptual Skills

Management Skills
Technical - knowledge of proficiency in a certain specialized field Human - ability to work well with other people both individually and in a group

Management Skills
Conceptual- ability to think and to conceptualize about abstract and complex situations

Managerial Titles
First-line managers - manage the work of non-managerial individuals who are directly involved with the production or creation of the organizations products

Managerial Titles
Middle managers - all managers between the first-line level and the top level of the organization manage the first-line managers

Managerial Titles
Top managers - responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization

Management
Yesterday and Today

Management
Links to other Fields of Study

Management
Economics Sociology Psychology Political Science Maths and Stats

Adam Smith (1776)

Division of Labour

Division of Labour
the breakdown of jobs into narrow and repetitive tasks

Early ideas Management

1. Robert Owen (17711858)

2. Henry R. Towne (1844 192

Robert Owen
Advocated concern for the working and living conditions for the employees.

Industrial revolution

Henry R. Towne (18441924)

Henry R. Towne (18441924)

1.Scientific Management F. W. Taylor, F. & L. Gilbreth, H. Gantt 2.Bureaucratic Management M. Weber 3.Administrative Management H. Fayol .

Taylors (1865, 1915)

Four Principles of Scientific Management (1911)

1.Study each part of a task scientifically, and develop a best method to perform it.

Taylors
Four Principles of Scientific Management 2. Carefully select workers and train
them to perform a task using the scientifically developed method.

Taylors
Four Principles of Scientific Management

3.Co-operate fully with workers to ensure they use the proper method.

Taylors
Four Principles of Scientific Management
4.Divide work and responsibility so management is responsible for planning work methods using scientific principles and workers are responsible for executing work accordingly.

Frank & Lillian Gilbreth

Time & motion study Human implications of Scientific Management Henry Gantt Pay incentives Gantt chart

(Max Weber .. (1864 -1920 )

German Sociologist An approach emphasizing the need for organizations to operate in a rational manner rather than relying on owners and managers whims!

Webers Ideal Bureaucracy

1) Impersonality: Rules, procedures applied uniformly regardless of individual personalities and personal considerations.

Webers Ideal Bureaucracy

2) Formal Rules & Procedures: Written rules should specify the work behavior desired from organization members and ensuring uniformity.

Webers Ideal Bureaucracy

3. Well-defined Hierarchy: Multiple levels of positions with clear reporting relationships among levels with an ability to establish accountability of actions.

Webers Ideal Bureaucracy

4. Career Advancement on basis of Merit:

Selection and promotion is based on members qualification and performance.

Henri Fayol (1841-1925) mining Eng. and then became MD in 1888. A French Industrialist his Mining & Metallurgical Co. still survives today in central

Administrative Management
being a top manager, Fayol developed his management theory so to be taught to individuals who had administrative responsibilities. Fayol isolated the main activity types in industry or business!

within Managerial Activities

Fayol identified five followings: Planning Organizing Commanding Co-ordinating Controlling

Henry Fayols 14 principles

1)Division of work 2) Authority 3) Discipline

4) Unity of Command
5) Unity of Direction 6) Subordination of individual interest to general interest

7) Remuneration
8) Centralization 9) Scalar Chain

10) Order
11) Equity
12) Stability of Personnel Tenure 13) Initiative 14) Esprit de Corps

Henry Fayol 14 principles

1) Division of work :work specialization can result in efficiencies and is applicable to both managerial and technical functions. there may be limitations how much you can divide the work.

Henry Fayol 14 principles

2)Authority: Managers must be able to give order. Authority gives them this right. Along with authority, however, goes responsibility.

Henry Fayol 14 principles

3) Discipline: Discipline is absolutely necessary for the smooth running of an organization, BUT state of discipline shall depend essentially on its leaders worthiness..

Henry Fayol 14 principles

4) Unity of Command: An employee should receive orders from one superior only.

Henry Fayol 14 principles

5) Unity of Direction: Activities aimed at the same objective should be organized so there is one plan and one person incharge.

Henry Fayol 14 principles

6) Subordination of individual interest to general interest: The interests of one employee or group of employees should not prevail over the organizations interests and goals.

Henry Fayol 14 principles

7) Remuneration: Compensation should be fair to both employee and employer.

Henry Fayol 14 principles

8) Centralization: The proper amount of centralization or decentralization depends on the situation. The objective optimum use of personnel capibilities.

Henry Fayol 14 principles

9) Scalar Chain: A scalar hierarchical) chain of authority extends from top to bottom of an organization and defines the communication path. However, horizontal communication is also encouraged as long as managers in the chain are kept informed.

Henry Fayol 14 principles

10) Order: Materials should be kept in well-chosen places to facilitate activities. Similarly, due to good organization and selection, the right person should be in the right place.

Henry Fayol 14 principles

11) Equity: Employees should be treated with kindness and justice.

Henry Fayol 14 principles

12) Stability of Personnel Tenure: Because time is required to become effective in new jobs, high turnover should be prevented.

Henry Fayol 14 principles

13) Initiative: Managers should encourage and develop subordinates initiative to the fullest.

Henry Fayol 14 principles

14) Esprit de Corps: Since union is strength, promoting team spirit will build harmony and unity within the organization..

There should be proper co-ordination of work at all levels Subordinates should be encouraged to develop informal relations among themselves. Efficient employees should be rewarded and those who are not up to the mark should be given a chance to improve their performance

Management
prior 1900 :Worker as a Social Animal after 1900:Worker as a Machine after Hawthorne Studies by E.Mayo)Worker should be taken as a human!

Behavioral Theorists
Hawthorne studies group of studies conducted at Hawthorne plant of an electric company during 1920s and 1930s , the result of which ultimately led to the human relation view of Management.

Hawthorne studies
Studies demonstrated that : 1) Human social and physiological needs are as important as money

2)Social interaction of work group is as important as organization of actual work. 3)Human factor cant be ignore in any management planning.

Hawthorne Effects

Behavioral Theorists
Abraham Maslow(1908-70) (Hierarchy of Needs)
Douglas McGregor(1906-1964) (Theory x and theory y)

Quantitative
Operations research Operations management Mis (management information system)

Management Science or Operations Research

Approach aimed at increasing decision effectiveness through use of Mathematical models &Statistical methods.

Operations Management

Function or field of expertise primarily responsible for managing Production & Delivery of an organization's Products and Services.

Management information systems (MIS)

Field of Management focused on designing & implementing computerbased information systems for use by management.

Contemporary
1. Systems Theory 2. Contingency Theory 3. Emerging Theories (Theory z)

External Environment
External environment is made up of: 1.The Mega-Environment The broad conditions and trends in societies in which an organization operates. 2.The Task Environment Specific outside elements with which an organization interfaces in the course of conducting its business.

The Mega-Environment
Five major elements: 1.Technological element Current state of knowledge regarding production of products & services.

2.Economic element Systems of producing, distributing & consuming wealth.

3.Legal-political element Legal & governmental systems within which an organization must function.

The Mega-Environment
4.Socio-cultural element Attitudes, values, norms, beliefs, behaviors & associated demographic trends characteristic of a given geographic area.

The Task Environment

Five elements: 1.Customers and clients Individuals and organizations purchasing products/services.

2.Competitors Other organizations either offering (or a high potential of offering) rival products/services.
3.Suppliers Organizations and individuals supplying resources an organization needs to conduct its operations.

The Task Environment

4.Labour supply Individuals potentially employable by an organization.

The Organizations Culture

A system

of shared meaning and beliefs held by organizational members.

ORGANIZATIONAL STAKEHOLDERS

Organizational Social Responsibility

The

obligation of an organization to seek actions protecting and improving societys welfare along with its own interests.

21st Century Trends And Issues

Entrepreneurship Three important themes:

1.Pursuit of opportunities Capitalizing on environmental change to create value. 2.Innovation Introducing new approaches to satisfy unfulfilled market needs. 3.Growth - Not content, to remain small

21st Century Trends And Issues Globalization:

All organizations are faced with the opportunities and challenges of operating in a global market, no longer constrained by national borders.

Regional Trading Alliances

Global competition is influenced by regional trading and cooperation agreements.

EU NAFTA

SAARC ASEAN

EUROPEAN UNION
In

1992 EU were created with 12 members,sweden joined the group in 1995 in 2004 EU added 10 more countries. The current EU membership covers a population base of 375 million people and the 25 members.

European Union (EU)

Regional Trading Alliance

Association

of Southeast Asian Nations (ASEAN)

1.Alliance of 10 Southeast Asian nations

2.Created in one of the fastest growing economic regions in the world

3.Could compete NAFTA and EU

NAFTA

North America free trade agreement were reached by the Mexican, Canadian, and U.S governments on August 12, 1992, a vast economy bloc was created.

South Asian Association for Regional Cooperation (SAARC)

World trade organization (WTO)

POLCA
Planning

Effective Decision Making

Steps to effective decision making: 1.Identify the Problem Scan for change,

Effective Decision Making

2.Generate alternative solutions Uncritically brainstorm to develop alternatives, combine & improve ideas.

Effective Decision Making

3.Evaluate & choose an alternative Feasibility, Quality, Cost, Speed, Ethics, Acceptability.

Effective Decision Making

4.Implement and monitor Plan and implement, evaluate effect on others, monitor

Nature of Managerial Decision Making

Types of problems faced: 1.Crisis problems Serious. Requires immediate action

Nature of Managerial Decision Making

2.Non-crisis problems Requires resolution but not both immediate and important.

Nature of Managerial Decision Making

3.Opportunity problems Opportunity for organizational gain IF appropriate action taken.

Nature of Managerial Decision Making

Decision Making Situations: 1.Programmed decisions Routine, repetitive, well structured situations by use of pre-determined decision rules.

Nature of Managerial Decision Making

Decision Making Situations: 1.Programmed decisions Routine, repetitive, well structured situations by use of pre-determined decision rules.

Nature of Managerial Decision Making

2.Non-programmed Decision Making Pre-determined decision rules are impractical due to novel &/or ill structured situations.

Bounded Rationality
Four constraints on rational decision making 1.Limited resources 2.Information overload 3.Memory problems 4.Expertise problems

Non-Rational Models
Managers seek alternatives only until they find one which looks satisfactory, rather than seeking an optimal decision.

Planning Aids
Increasing Decision Effectiveness

Planning Aids

For Assessing Environment For Allocating Resources Contemporary Planning Techniques

Planning Aids
For Assessing Environment:

Environmental Scanning Forecasting Benchmarking

Planning Aids
For Allocating Resources:

Budgeting Scheduling Break even Analysis

Planning Aids
Contemporary Planning Techniques:

Project Management Scenarios Analysis

For Assessing Environment:

Environmental Scanning; The screening of large amounts of information to Anticipate changes in the environment.

For Assessing Environment:

SWOT Analysis Strengths Weaknesses Opportunities Threats

For Assessing Environment:

Competitive Intelligence; An activity that seeks to identify who are our competitors, what are they doing, and how their actions will affect our organization.

FORECASTING
Process of making predictions about changing conditions and future events that may affect the business of an organization.

FORECASTING
Quantitative Qualitative or Technological.. Judgmental

Quantitative forecasting

Relies on the numerical data and mathematical models to predict future conditions

1) Quantitative

Time Series Methods

It uses historical data to forecast the future.

Causal method

A dependent variable is a variable expected to be predicted or explained. An independent variable is a variable in an experiment that the market research can, to some extent, manipulate, change, or alter

2) Qualitative or Technological..
Aim to predict long term technology trends by relying on creativity, judgments and experts knowledge.(Delphi Analysis)

3) Judgmental
Relies on individual judgments or committee agreements about future conditions

3) Benchmarking
The search for the best practices among competitors that lead to their superior performance..

Allocating resources

Budgeting Scheduling Break even Analysis

Budgeting
Budgeting; The Budget is a numerical plan for allocating resources to specific activities in a specific period.

Scheduling
Detailing what activities have to be done, the order in which they are to be completed, who is to do each, and when they are to be completed.

Scheduling
GANTT Charts: A scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time.

Break even Analysis;

A technique for identifying the point at which total revenue is just sufficient to cover total costs.

Rupees (in thousands)

1200
1000 800 600 400 Break-even point

Total revenue Target profit Total cost

Fixed cost

200
0 10 20 30 40 50

Sales volume in units (thousands)

Contemporary Planning Techniques:

Project Management Scenarios Analysis

Project Management;
The task of getting a projects activities done on time, within budget, and according to specifications.

Scenarios Analysis;
A consistent view of what the future is likely to be.

Types of Planning?
Informal Planning
1. Nothing is written down 2.Little or no sharing of goals 3.General and lacking in continuity

Formal Planning
1.Written and defined specific goals 2.Specific action programs exist to achieve goals

How Do Managers Plan Developing Plans ! Approaches to Planning Traditional, top-down approach Planning done by top managers

How Do Managers Plan Developing Plans

Approaches to Planning Inclusive Approach
Employees at each level develop plans suited to their needs Employees acquire greater sense of the importance of planning when they participate in the process

The planning process

Setting goals and developing plans that leads to goal attainment and ultimately, to organisational efficiency and effectiveness.

How Do Managers Plan?

Steps in Goal Setting 1 - Review the organizations mission 2 - Evaluate available resources 3 - Determine the goals individually or with input from others

How Do Managers Plan? Steps in Goal Setting

4.Should be congruent with the organizational mission and goals in other organizational areas 5- Write down the goals and communicate them to all who need to know them

How Do Managers Plan?

Steps in Goal Setting

6- Review results and whether goals are being met

The planning process

Mission
The organisations purpose or fundamental reason for existence.

The planning process

Goal
Future target or end result an organisation wishes to achieve.

The planning process

Plan
Means devised for attempting to reach a goal.

The planning process

Goal Attainment (Org. Efficiency and Effectiveness)

Mission

Goals Plans

Levels of goals
Top Managers
Organisational Perspective
Strategic Goals Strategic Plans

Middle Managers
Departmental Perspective

Tactical Goals

Tactical Plans

1st level Managers

Unit/individual Perspective

OperationalOperational Goals Plans

Goal Content
Content should be: Challenging Specific Measurable Attainable Relevant Time limited

Linking Goals & Plans

Levels of Goals and Plans:

Operational Tactical Strategic

Linking Goals & Plans

Time span of Goals and Plans:

Short (Operational) Intermediate (Tactical) Long range (Strategic)

Starting at the Top

Clarify how the company will Strategic Plans serve customers and position itself against competitors (2-5 years)

Tactical Plans

Specify how a company will use resources, accomplish goals (6 months to 2 years)

Operational Plans

Day-to-day plans for producing or delivering products and services over a 30-day to six month period.

A Corporations Mission
to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.

Kinds of Operational Plans

Single-Use Plans Plans that cover unique, one-time-only events

Standing Plans

Plans used repeatedly to handle frequently recurring events. Three kinds are: policies, procedures, and rules and regulations.