Perspective Management: - Vaibhavi A Oak

PERSPECTIVE
MANAGEMENT
-VAIBHAVI A OAK
2
NATURE OF
MANAGEMENT
3
ACCORDING TO PETER F.
DRUCKER, THE EMERGENCE OF
MANAGEMENT AS AN
ESSENTIAL, A DISTINCT AND
LEADING SOCIAL INSTITUTION IS
A PIVOTAL EVENT IN SOCIAL
HISTORY
4
MANAGEMENT IS AN ART
IT IS IN THE SENSE OF
POSSESSING MANAGING
SKILL BY AN INDIVIDUAL
5
MANAGEMENT IS SCIENCE TOO

IT INVOLVES DEVELOPING
CERTAIN PERSPECTIVE OR LAWS
APPLICABLE IN A PLACE
WHERE A GROUP OF
ACTIVITIES ARE COORDINATED
6
ACCORDING TO RALPH C.
DAVIS, MANAGEMENT IS
THE FUNCTION OF
EXECUTIVE LEADERSHIP
EVERYWHERE
APPLICATION OF PERSPECTIVE
7
MANAGEMENT INTO ACTION IN

YOUR LIFE AS WELL AS ON
YOUR WORKPLACE EVERY DAY
AND CORRELATING THESE
PERSPECTIVE WITH YOUR
PERSONAL LIFE SITUATIONS IS
CALLED INTERNALIZATION
8
MANAGEMENT INVOLVES A SET OF

PROCESSES THAT COME INTO PLAY
WHENEVER WE WANT TO ACHIEVE
SOMETHING:
THAT IS, OUR PRESET GOAL
BY THINKING PROCESS AND
UTILIZING THE INPUTS SUCH AS
MAN, MACHINE, MATERIALS,
MONEY ETC. IN A COORDINATED
FASHION
9
WHILE DOING THIS, DUE TO LACK OF

SYSTEMATIC APPROACH, MANY TIMES,
WE ARE IN A CHAOTIC SITUATION
MANAGEMENT IS THE ART
10
OF GETTING THINGS DONE

BY A GROUP OF PEOPLE
WITH THE EFFECTIVE
UTILIZATION
OF AVAILABLE
RESOURCES
11
MANAGEMENT IS THE GROUP OF

ACTIVITIES, WHICH
•DRAFTS PLANS,
•PREPARES POLICIES, AND
•ARRANGES MEN, MONEY, MACHINES
AND MATERIALS REQUIRED TO
ACHIEVE THE OBJECTIVES
12
MANAGEMENT IS THE
ACTIVITY OF MAN WHO
STRUGGLES FOR BETTER
LIVING IN THE COMPLEX
AND COMPETITIVE WORLD
13
MANAGEMENT IS AN
ORGANIZED EFFORT OF
PEOPLE WHOSE PURPOSE
IS TO ACHIEVE THE
OBJECTIVES AND GOALS OF
AN ORGANIZATION
14
F.W.TAYLOR
15
ACCORDING TO F.W.TAYLOR,
MANAGEMENT IS THE ART
OF KNOWING WHAT YOU
WANT TO DO, AND THEN
SEEING THAT IT IS DONE IN
THE BEST AND THE
CHEAPEST WAY
16
HENRY FAYOL
17
ACCORDING TO HENRY
FAYOL, TO MANAGE IS TO
FORECAST AND TO PLAN, TO
ORGANIZE, TO COMMAND,
TO COORDINATE AND TO
CONTROL
MANAGEMENT IS: 18
OPTIMUM UTILIZATION OF
AVAILABLE RESOURCES
IN ORDER TO ATTAIN
CERTAIN PRE-SET
GOALS/OBJECTIVES
19
OPTIMUM UTILIZATION
MEANS:
BEST POSSIBLE
UTILIZATION UNDER
GIVEN CIRCUMSTANCES
MANAGEMENT AS A “PROCESS” 20
MCFARLAND DEFINES MANAGEMENT

AS
“A PROCESS BY WHICH MANAGERS
CREATE, DIRECT, MAINTAIN AND
OPERATE PURPOSIVE ORGANIZATION
THROUGH:
SYSTEMATIC, COORDINATED,
COOPERATIVE HUMAN EFFORTS”
21
THE TERM PROCESS

EMPHASIZES THE
DYNAMIC
OR ONGOING NATURE OF
MANAGEMENT, AN
ACTIVITY OVER VARYING
SPAN OF TIME.
22
THE DYNAMIC NATURE

IMPLIES THAT CHANGE IS
REALITY OF
ORGANIZATIONAL LIFE
23
BUSINESSES FAIL AND

BECOME BANKRUPT
BECAUSE MANAGERS FAIL
IN THEIR ATTEMPT TO
COPE WITH THE CHANGE
24
MANAGEMENT AS
“COORDINATION”
DONALLY, GIBSON AND
IVANCEVICH
ALSO SUPPORT THE VIEW OF
MANAGEMENT AS A PROCESS
BUT THEIR STRESS IN MORE ON
CO-ORDINATION.
25
MANAGEMENT AS A “FUNCTION”
DUNN, STEPHENS AND KELLY SAY
THAT: “MANAGEMENT IS A ROLE
WHICH INCLUDES A SET OF DUTIES,
RESPONSIBILITIES, AND
RELATIONSHIPS-INVOLVED IN WORK
ORGANIZATIONS”.
THESE DUTIES AND RESPONSIBILITIES
CONSTITUTE THE FUNCTION A
MANAGER PERFORMS
26
MANAGEMENT IS GETTING
THINGS DONE THROUGH
OTHER PEOPLE.
EFFICIENT MANAGEMENT IS
THE LIFEBOAT OF ANY
DEVELOPED BUSINESS
THERE ARE FIVE M’S IN THE 27
BUSINESS, WHICH CAN BE

CALLED AS THE RESOURCES
OF THE BUSINESS:
1. MAN:
AVAILABILITY OF QUALIFIED,
TRAINED, SKILLED, EXPERIENCED AND
COMPETENT PEOPLE IS THE MOST
IMPORTANT FACTOR IN ANY
MANAGEMENT, ANYWHERE

OF THE BUSINESS:
2. MACHINES
AVAILABILITY OF CAPABLE MACHINES
AND EQUIPMENT IS A MUST TO DO THE
THINGS IN THE BEST AND THE
CHEAPEST WAY
THERE ARE FIVE M’S IN THE
29
CALLED AS THE RESOURCES OF

THE BUSINESS:
3. MATERIALS:
QUALITY, QUANTITY, AVAILABILITY,
COST/MARKET PRICE AND
TRANSPORTATION OF RAW MATERIALS,
SEMI-FINISHED GOODS AND FINISHED
GOODS IS A CLEARLY A VERY VITAL
FACTOR IN SUCCESS OF MANAGEMENT.
THERE ARE FIVE M’S IN THE
30

OF THE BUSINESS:
4. MONEY:
AVAILABILITY OF FUNDS FOR
RUNNING THE BUSINESS IS
EXTREMELY IMPORTANT
PARTICULARLY FOR PROCURING
CAPITAL GOODS, RAW MATERIALS,
TOOLS AND CONSUMABLES, AND
AVAILABILITY OF WORKING CAPITAL

OF THE BUSINESS:
5. METHODS:
IF WE HAVE TO DO THINGS IN THE BEST
AND CHEAPEST WAY, IT IS ALSO
IMPORTANT HOW THE THINGS ARE
PROCESSED. THAT IS, BY WHICH
METHOD THE THINGS ARE PROCESSED
METHODS FORM THE 32
COMPETITIVE EDGE:
•THE PROPER METHOD WILL
ENSURE REQUIRED QUALITY,
QUANTITY AND IN-TIME
DELIVERY
•IT WILL ENSURE THE
ACCOMPLISHMENT OF
MANAGEMENT OBJECTIVES
33
MANAGEMENT IS AN
ESSENTIAL ACTIVITY OF
ALL ORGANIZATIONAL
LEVELS
LOWER, MIDDLE AND
UPPER LEVEL

34
MANAGEMENT APPLIES TO:

•SMALL AND LARGE ORGANIZATIONS
•PROFIT AND NONPROFIT
ORGANIZATIONS
•MANUFACTURING ORGANIZATIONS
•SERVICE RENDERING ORGANIZATIONS
IF YOU ARE A PERSON WHO IS: 35
•CAPABLE OF UNDERTAKING THE TASKS

AND FUNCTIONS OF MANAGING AT ANY
LEVEL, IN ANY KIND OF ENTERPRISE;
•YOU HAVE LEADERSHIP QUALITIES;
•AND YOU HAVE QUALITIES OF AN
ADMINISTRATOR;
YOU WILL BECOME A GOOD MANAGER
36
A GOOD MANAGER IS EXPECTED TO

HAVE ABILITY OF FOUR SKILLS AS
GIVEN BELOW:
•TECHNICAL SKILLS
•HUMAN SKILLS
•CONCEPT SKILLS
•ABILITY TO SOLVE PROBLEMS

37
• ANY ENDEAVOR STARTS

WITH END PURPOSE, I.E.
“GOAL”
• WHEN GOAL IS SET, STEPS
TOWARDS GOAL ALSO
BECOME CLEAR
• ONE CAN BECOME
SUCCESSFUL ONLY IF HE
HOWEVER, THE GOALS 38
MUST BE
S-M-A-R-T
--------------------------------
SPECIFIC:
WE SHOULD BE SPECIFIC IN OUR
GOAL.
MUST BE
S-M-A-R-T
--------------------------------
MEASURABLE:
THE GOAL MUST BE MEASURABLE.
E.G., I WANT TO SECURE 95%
MARKS.
HOWEVER, THE GOALS MUST 40
BE
S-M-A-R-T
--------------------------------
ACHIEVABLE
OUR RESOURCES ARE LIMITED. WE
NEED TO PLAN AROUND THE
AVAILABLE ONES & MAKE THEM
ACHIEVABLE. PRACTICALITY PLAYS A
VERY IMPORTANT ROLE.
MUST BE
S-M-A-R-T :
--------------------------------
REALISTIC:
THE GOAL MUST BE REALISTIC.
MUST BE
S-M-A-R-T
--------------------------------
TIME BOUND:
YOUR GOAL SHOULD HAVE A TIME
LIMIT .
43
IMPORTANCE OF MANAGEMENT:
•MANAGEMENT MEETS THE CHALLENGE

OF CHANGE
•ACCOMPLISHMENT OF GROUP GOALS
•EFFECTIVE UTILIZATION OF
RESOURCES
•EFFECTIVE FUNCTIONING OF BUSINESS
44
•RESOURCE DEVELOPMENT
•SOUND ORGANIZATIONAL STRUCTURE
•MANAGEMENT DIRECTS THE
ORGANIZATION
•IT INTEGRATES VARIOUS INTERESTS
45
•IT STABILIZES THE FLUCTUATIONS
•IT INNOVATES
•COORDINATION AND TEAM SPIRIT
•TACKLING AND SOLVING PROBLEMS
•MANAGEMENT IS A TOOL FOR
PERSONALITY DEVELOPMENT
HISTORY OF MANAGEMENT
47
MANAGEMENT HAS DEVELOPED SINCE

THE TIME IMMEMORIAL OR SINCE THE
WORLD CAME INTO EXISTENCE.
NO ENDEAVOR COULD BE STARTED, RUN
AND COMPLETED WITHOUT
MANAGEMENT.
WHENEVER GROUP EFFORTS WERE NECESSARY TO
ACHIEVE ANYTHING, THERE HAD BEEN A NEED FOR
MANAGEMENT.
AN INDIVIDUAL COULD NOT ACHIEVE ANYTHING
SINGLE HANDEDLY.
48
IN INDIA, OUR VEDAS, RISHIS,

KAUTILYA AND SAINT
THIRUVALLUVAR WERE THE
PIONEERING CONTRIBUTORS
TO THE ORIGIN OF
MANAGEMENT THOUGHT OF
THEIR TIME.
49
• THOUGH BUSINESSES WERE

CONDUCTED FOR A LONG PERIOD OF
TIME, THERE WAS HARDLY ANY
SYSTEMATIC APPROACH.
• BRAND VISIBILITY WAS MISSING.
• THE WORKING WAS NOT STRUCTURED.
• THE INDUSTRY WAS MAINLY NEED
BASED, DEPENDENT ON CRAFT OF
INDIVIDUALS.
50
INDUSTRIAL REVOLUTION:
DURING THE SPAN OF 100 YEARS
FROM YEAR 1750 TO 1850,
SCIENTISTS’ PERFORMANCE WAS
SIGNIFICANT. THEY CREATED NEW
TECHNIQUES. NEW MACHINE AGE
STARTED
51
• STEAM POWER AND ELECTRICITY WAS BROUGHT INTO FORCE

INSTEAD OF MAN POWER AND ANIMAL POWER.
• COTTAGE INDUSTRIES WERE REPLACED BY CITY INDUSTRIES.
• PRODUCTION BEGAN TO TAKE PLACE ON LARGE SCALE AND
ALSO AT GREAT SPEED
• HUMAN LIFE CHANGED ALMOST FROM ALL ANGLES.
IN THE LATE 1920S THE GREAT ECONOMIC DEPRESSION OCCURRED IN

USA LEADING TO A MAJOR NATIONAL CALAMITY.
COLLECTIVELY, PEOPLE FOUGHT BACK WORKING HARD TO TURN
AROUND THE ECONOMY FROM A DEFICIT STATE TO A SURPLUS
ONE.
THE RESULT WAS THE ADVENT OF THE SECOND INDUSTRIAL
REVOLUTION
WITH ABUNDANCE, CAME WASTAGE
52
AND LACK OF DISCIPLINE OF

PRODUCTION AND CONSUMPTION.
OBSERVERS AND RESEARCHERS
STUDIED THE IMPORTANCE OF
SYSTEMATIC APPROACH OF RUNNING
ORGANIZATIONS.
THE RESULT WAS THE SCIENTIFIC
53
MANAGEMENT MOVEMENT LED BY

THE WORK OF F.W.TAYLOR, THE
FATHER OF SCIENTIFIC MANAGEMENT.
THE CONTRIBUTORS WHO CAME AFTER
HIM MADE MAJOR CONTRIBUTIONS TO
TEACH ORGANIZATIONS TO RUN
THEMSELVES SCIENTIFICALLY.
54
HENRI FAYOL
HENRI FAYOL CLASSIFIED ALL THE 55
BUSINESS ACTIVITIES INTO SIX FUNCTIONS:

1.TECHNICAL ACTIVITIES RELATING TO
PRODUCTION
2.COMMERCIAL ACTIVITIES RELATING TO
PURCHASE OF BASIC RAW MATERIALS AND
OTHER RESOURCES, SELLING OF PRODUCTS
AND EXCHANGE
3. FINANCIAL ACTIVITIES RELATING TO
IDENTIFICATION AND UTILIZATION OF
AVAILABLE FUNDS
HENRI FAYOL CLASSIFIED ALL THE BUSINESS
ACTIVITIES INTO SIX FUNCTIONS: 56
4. SECURITY ACTIVITIES RELATING TO THE STEPS

TAKEN TO PROTECT THE PROPERTY OF
ENTERPRISE AND PERSONS.
5. ACCOUNTING ACTIVITIES RELATING TO THE
RECORDING AND MAINTAINING ACCOUNTS,
STOCK TAKING, AND PREPARATION OF COST
SHEETS, BALANCE SHEETS AND
STATISTICAL DATA
6. MANAGERIAL ACTIVITIES RELATING TO
PLANNING, ORGANIZING, COMMANDING,
COORDINATING AND CONTROLLING
57
HENRY FAYOL IDENTIFIED QUALITIES OF

A MANAGER AS FOLLOWS:
•PHYSICAL: (HEALTH, VIGOR AND
ADDRESS)
•MENTAL: (ABILITY TO UNDERSTAND AND
LEARN, JUDGMENT, MENTAL VIGOR,
ADAPTABILITY)
•MORAL: (ENERGY, FIRMNESS,
WILLINGNESS TO ACCEPT
RESPONSIBILITY, INITIATIVE, LOYALTY,
TACT AND DIGNITY)
HENRY FAYOL IDENTIFIED QUALITIES OF
58
A MANAGER AS FOLLOWS:
•GENERAL EDUCATION (ACQUAINTANCE

WITH MATTERS NOT BELONGING
EXCLUSIVELY TO THE FUNCTION
PERFORMED)
•SPECIAL KNOWLEDGE (PECULIAR TO
THE FUNCTION, BE IT TECHNICAL,
COMMERCIAL, FINANCIAL, MANAGERIAL
ETC.)
•EXPERIENCE
59
PERSPECTIVE MANAGEMENT SET

FORTH BY HENRI FAYOL:
•DIVISION OF WORK
•AUTHORITY AND RESPONSIBILITY
•DISCIPLINE
•UNITY OF COMMAND
•UNITY OF DIRECTION
60
PERSPECTIVE MANAGEMENT SET

•SUBORDINATION OF INDIVIDUAL
INTEREST TO GROUP INTEREST
•REMUNERATION OF PERSONNEL
•CENTRALIZATION OR
DECENTRALIZATION OF AUTHORITY
•SCALAR CHAIN
PERSPECTIVE MANAGEMENT SET61

•THE PRINCIPLE OF RIGHT PLACE
FOR EVERYTHING AND FOR
EVERYONE
•COMBINATION OF FAIRNESS,
KINDNESS AND JUSTICE
•STABILITY OF TENURE OF
PERSONNEL: SECURITY OF JOB
PERSPECTIVE MANAGEMENT SET 62

•INITIATIVE
•ALL THE EMPLOYEES OF THE
ORGANIZATION ARE PUT TOGETHER AS
A TEAM IN ORDER TO ACHIEVE THE
OBJECTIVES OF THE ORGANIZATION.
THE MANAGEMENT SHOULD NOT
FOLLOW THE POLICY OF DIVIDE AND
RULE.
63
F.W.TAYLOR
64
IMPORTANCE OF LEARNING SCIENTIFIC

MANAGEMENT LED BY THE WORK OF
F.W.TAYLOR
•IT IS SYSTEMATIC APPROACH OF
ACHIEVING GOALS THROUGH CHECKS
AND CONTROLS.
•IT FACILITATES FOCUSED, BALANCED
APPROACH IN RUNNING BUSINESSES.
65
IMPORTANCE OF LEARNING SCIENTIFIC

MANAGEMENT LED BY THE WORK OF
F.W.TAYLOR
•THEINDIVIDUAL THINKING AND PROBLEM
SOLVING PROCESSES ARE ENHANCED.
•ITFACILITATES CONVERSION OF CHAOS
INTO CLARITY.
•ONTHE PERSONAL FRONT, IT REDUCES
STRESS AND PROMOTES SELF-GROWTH.
66
SCIENTIFIC MANAGEMENT CONSISTS OF A

CERTAIN PHILOSOPHY OF:
•SCIENTIFIC
SELECTION AND TRAINING OF
RIGHT WORKERS FOR THE RIGHT JOB
•PROVIDINGADEQUATE WORKING
CONDITIONS SUCH AS LIGHTING,
VENTILATION, DRINKING WATER, CANTEEN,
SANITATION, REST ROOMS, REST PERIODS
67
SCIENTIFIC MANAGEMENT CONSISTS OF

A CERTAIN PHILOSOPHY OF:
•PROVIDING A SYSTEM OF MONETARY

INCENTIVES TO EFFICIENT WORKERS
•ASSUMPTION OF RESPONSIBILITIES BY
MANAGERS AND SUPERVISORS.
68
F.W.TAYLOR DEFINED SCIENTIFIC

MANAGEMENT AS:
“SUBSTITUTION OF
EXACT SCIENTIFIC INVESTIGATIONS
AND KNOWLEDGE
FOR OLD JUDGMENT OR OPINION
IN ALL MATTERS OF WORK DONE”.
69
F.W.TAYLOR FIRMLY BELIEVED THAT

OBJECTIVE OF MANAGEMENT SHOULD BE:
•MAXIMUM PROSPERITY FOR THE EMPLOYER:
LOWER COSTS AND HIGH RETURNS
•MAXIMUM PROSPERITY FOR EACH
EMPLOYEE: FAIR AS WELL AS HIGHER
WAGES
PERSPECTIVE OF SCIENTIFIC
70
MANAGEMENT:
A. SCIENCE-NOT RULE OF THUMB
• Replacement of old method by doing
work scientifically
• Fair work to each worker
• Standardization in work
• Differential piece rate of payment system
71
MANAGEMENT:
B. HARMONY IN GROUP ACTION

• Peace and friendship
• Dissatisfaction to be avoided
PERSPECTIVE OF SCIENTIFIC 72
MANAGEMENT:
C. COOPERATION BETWEEN
MANAGEMENT AND WORKERS
AND VICE VERSA
D. MAXIMUM OUTPUT
• by division of work
• by assumption of responsibility
jointly by management and workers
MANAGEMENT: 73
E. IMPROVEMENT OF WORKERS
• Scientific selection of workers:
finding out physical, educational and
psychological requirements of each
job and find suitable persons for each
job
• Workers are provided with job
training.
74
Peter F.Drucker
75
DRUCKER COINED THE TERM

“KNOWLEDGE WORKER" AND
LATER IN HIS LIFE CONSIDERED
KNOWLEDGE WORKER
PRODUCTIVITY TO BE THE NEXT
FRONTIER OF MANAGEMENT
76
CONTRIBUTIONS OF PETER
F.DRUCKER:
NATURE OF MANAGEMENT:
•NO BUREAUCRATIC MANAGEMENT
•EMPHASIZED MANAGEMENT WITH
CREATIVE AND INNOVATIVE
CHARACTERISTICS
CONTRIBUTIONS OF PETER F. DRUCKER: 77
•BASIC OBJECTIVE OF MANAGEMENT :

INNOVATION. (DEVELOPMENT OF NEW
IDEAS, COMBINATION OF OLD AND NEW
IDEAS, ADAPTION OF IDEAS FROM OTHER
FIELDS, TO ENCOURAGE OTHERS TO CARRY
OUT INNOVATION)
•HETREATED MANAGEMENT AS A
DISCIPLINE AS WELL AS A PROFESSION.
78
F.DRUCKER:
A MANAGER HAS TO DETERMINE THE
OBJECTIVES AND ACTIVITIES, AND IS
CONCERNED WITH THE DIRECTION
AND CONTROLLING OF THE
ACTIVITIES, TO MAKE CONTRIBUTIONS
FOR THE SPECIFIC PURPOSE AND
MISSION OF THE INSTITUTION
WHETHER BUSINESS, HOSPITAL OR
UNIVERSITY.
CONTRIBUTIONS OF PETER 79
F.DRUCKER:
ORGANIZATION STRUCTURE:
AN EFFECTIVE ORGANIZATION
STRUCTURE IS FRAMED IN SUCH A
WAY THAT IT ENABLES SMOOTH
PERFORMANCE. IT CONTAINS
MINIMUM NUMBER OF MANAGERIAL
LEVELS. IT PROVIDES A CHANCE TO
TEST THE ABILITY OF YOUNG PEOPLE
WHO ARE ACCEPTING THE
RESPONSIBILITY.
F.DRUCKER:
CENTRALIZED CONTROL WITH A
STRUCTURE OF
DECENTRALIZATION:
SIMILAR TO THE FEDERAL STRUCTURE OF
GOVERNMENT, THE TOP MANAGEMENT HAS
MORE POWERS THAN VARIOUS
DEPARTMENTS. BUT THE DECISIONS
REGARDING THE DEPARTMENTS HAVE TO
BE TAKEN BY BOTH OF THEM.
DEPARTMENTS ARE ALLOWED TO TAKE
DECISIONS WITHIN THE LIMITS SET UP BY
F.DRUCKER: 81
MANAGEMENT BY OBJECTIVES: (MBO)
DRUCKER INTRODUCED THIS CONCEPT

IN 1954. METHOD OF PLANNING,
SETTING STANDARDS, PERFORMANCE
APPRAISAL AND MOTIVATION ARE THE
COMPONENTS OF MBO. IT GIVES
IMPORTANCE TO SELF CONTROL
RATHER THAN CONTROL MADE BY
OTHERS.
F.DRUCKER:
•DRUCKER VISUALIZED RAPID CHANGES IN SOCIETY
DUE TO RAPID TECHNOLOGICAL DEVELOPMENT.
•HEREALIZED IMPACT OF SUCH CHANGES ON
HUMAN LIFE. HE STRESSED THAT HUMAN BEINGS
SHOULD DEVELOP AN ATTITUDE TO FACE THE
CHANGES BY DEVELOPING DYNAMIC
ORGANIZATIONS, BY ABSORBING RAPID CHANGES.
83
Mary Parker Follett
•Conflict: She rejected domination and compromise ways of removing conflict.

Under integration, the wishes of both parties are integrated. So both parties would
be satisfied without sacrificing their desires.
•A smooth employer and employee relationship based on cooperation is the
foundation of good industrial organization.
•Leadership: Leaders are not only born but also could be made through proper
training in human behavior. She did not believe in dominating leadership.
84
George Elton Mayo
•HEWAS THE FIRST PERSON TO LOOK INTO THE

MATTER OF HUMAN RELATIONS EMPHASIZING THE
IMPORTANCE OF DESIRES, ATTITUDES, AND
FEELING OF THE WORKERS.
•HEALONG WITH HIS COLLEAGUES CONDUCTED
HAWTHORNE EXPERIMENTS, AN IMPORTANT
LANDMARK IN THE HISTORY OF THE HUMAN
RELATIONS MOVEMENT.
Hawthorne Experiments 85
HAWTHORNE EXPERIMENTS WERE CONDUCTED AT THE HAWTHORNE

PLANT OF THE WESTERN ELECTRIC COMPANY IN CHICAGO
FROM 1924-1932, BY ELTON MAYO AND HIS COLLEAGUES
AND WERE PUBLISHED IN SIX VOLUMES VIZ.:
•THE HUMAN PROBLEMS OF INDUSTRIAL CIVILIZATION
•THE SOCIAL PROBLEMS OF INDUSTRIAL CIVILIZATION
•THE INDUSTRIAL WORKER
•LEADERSHIP IN A FREE SOCIETY
•MANAGEMENT AND WORKER
•MANAGEMENT AND MORALE
86
ELTON MAYO AND HIS COLLEAGUES

CONDUCTED RESEARCHES IN FOUR
PHASES:
•ILLUMINATION EXPERIMENTS
•RELAY ASSEMBLY TEST ROOM
EXPERIMENT
•MASS INTERVIEWING PROGRAM
•BANK WIRING OBSERVATION ROOM
EXPERIMENTS
87
FINDINGS OF HAWTHORNE EXPERIMENTS:
1. SOCIAL UNIT:
A FACTORY IS NOT ONLY A TECHNO-ECONOMIC UNIT, BUT ALSO A
SOCIAL UNIT. MEN ARE SOCIAL BEINGS. THIS SOCIAL CHARACTERISTIC
AT WORK PLAYS AN IMPORTANT ROLE IN MOTIVATING PEOPLE. THE
OUTPUT INCREASED IN RELAY ROOM DUE TO EFFECTIVELY
FUNCTIONING OF A SOCIAL GROUP WITH A WARM RELATIONSHIP WITH
ITS SUPERVISORS.
2. GROUP INFLUENCE:
THE WORKERS IN A GROUP DEVELOP A COMMON PSYCHOLOGICAL
BOND UNITING THEM AS GROUP IN THE FORM OF INFORMAL
ORGANISATION. THEIR BEHAVIOUR IS INFLUENCED BY THESE GROUPS.
PRESSURE OF A GROUP, RATHER THAN MANAGEMENT DEMANDS,
FREQUENTLY HAS THE STRONGEST INFLUENCE ON HOW PRODUCTIVE
WORKERS WOULD BE.
3. GROUP BEHAVIOUR:
MANAGEMENT MUST UNDERSTAND THAT A TYPICAL GROUP
BEHAVIOUR CAN DOMINATE OR EVEN SUPERSEDE INDIVIDUAL
88
FINDINGS OF HAWTHORNE EXPERIMENTS:
4. Motivation:
Human and social motivation can play even a greater role than
mere monitory incentives in moving or motivating and managing
employee group.
5. Supervision:
The style of supervision affects worker’s attitude to work and his
productivity. A supervisor who is friendly with his workers and
takes interest in their social problems can get co-operation and
better results from the subordinates.
6. Working Conditions:
Productivity increases as a result of improved working conditions
in the organisation.
FINDINGS OF HAWTHORNE
89
EXPERIMENTS:
7. Employee Morale:
Mayo pointed out that workers were not simply cogs, in the machinery,
instead the employee morale (both individual and in groups) can have
profound effects on productivity.
8. Communication:
Experiments have shown that the output increases when workers are
explained the logic behind various decisions and their participation in
decision making brings better results.
9. Balanced Approach:
The problems of workers could not be solved by taking one factor i.e.
management could not achieve the results by emphasizing one aspect. All
the things should be discussed and decision be taken for improving the
whole situation. A balanced approach to the whole situation can show
better results.
VISION & MISSION
VISION STATEMENT 91
IS WRITTEN BY LOOKING AHEAD INTO THE

FUTURE.
•IT AIMS AT HIGHER ACHIEVABLE
THINGS.
•IT IS BASED ON WHAT THE
ORGANIZATION SHOULD STRIVE FOR
AND ACHIEVE IN ANOTHER FIVE TO TEN
YEARS.
92
THIS ACTS AS A POWERFUL

TOOL, A GUIDING STAR.
WHEN PERSONALIZED AND
TRULY OWNED, VISION
PROVIDES THE INCENTIVE-THE
DRIVE TOWARDS FULFILLMENT.
93
IT CREATES COMMITMENT,
MOTIVATION AND THE DRIVE
FOR INITIATING THE MISSION,
OBJECTIVES, PROJECTS AND
TASKS NECESSARY TO REALIZE
THE VISION.
94
IT SHOULD BE UNDERSTOOD
THAT VISION IS A
PORTRAYAL OF WHAT LIFE
COULD BE FIVE TO TEN
YEARS FROM NOW.
VISION IS THE RESULT OF DREAMS
IN ACTION.
95
TIME IS ALLOWED FOR DREAMING

AND BRAINSTORMING ALONG
WITH CATEGORIZING RANDOM
THOUGHTS TO ENSURE A
COMPREHENSIVE AND REALISTIC
VISION.
96
• THE VISION STATEMENT GIVES DIRECTION TO THE

ORGANIZATION.
• HAVING A VISION PAVES WAY FOR THE SUCCESS
OF THE ORGANIZATION.
• BETWEEN THE DREAM AND THE VISION, THE
ORGANIZATION HAS TO CLIMB A LADDER OF
ACTION PLANS SUCH AS EXPERTISE, CREATIVITY,
EMPOWERMENT, INVOLVEMENT AND VALUES.
• A VISION IN EACH OF THESE SUB LEVELS WILL
HELP THE ORGANIZATION TO REACH THE GOAL
FASTER.
GENERAL GUIDELINES FOR A
97
VISION STATEMENT:
•INVOLVE AS MANY EMPLOYEES
AS POSSIBLE IN THE
FORMULATION OF VISION
STATEMENT.
•AFFINITY DIAGRAM AND
BRAINSTORMING SHOULD BE
USED IN THE FORMULATION OF
GENERAL GUIDELINES FOR A
VISION STATEMENT:
98
•THEVISION SHOULD PROJECT THE GROWTH

AND DEVELOPMENT.
•IT SHOULD BE SHORT AND REALISTIC.
•THE VALUE SYSTEM TO BE PROJECTED IN
THE STATEMENT.
•HOW YOU INTEND TO ACHIEVE THE
FORESIGHTED VISION SHOULD BE
HIGHLIGHTED.
Vision statement should be: 99
Vision statement should be: Progressive

Futuristic Futuristic
Progressive

Creative VISION Simple
Enthusiastic Unique
VISION STATEMENT OF TATA MOTORS LIMITED
100
TO BE A WORLD CLASS CORPORATE

CONSTANTLY FURTHERING THE
INTEREST OF ALL ITS STAKEHOLDERS.
MISSION STATEMENTS 101
IFTHE VISION IS “WHAT” OF LIFE, THEN THE

MISSION IS “WHY” AND “HOW”.
ITIDENTIFIES THE ROLES AND ACTIVITIES TO
WHICH AN INDIVIDUAL IS COMMITTED AND
PROVIDES THE OVERALL DIRECTION FOR
ACHIEVING THE VISION.
IT IS A ROAD MAP FOR ACHIEVING THE
VISION.
102
• MISSION FOCUSES ON WHAT YOU

WANT TO BE AND WHAT YOU WANT
TO DO- CONTRIBUTIONS AND
ACHIEVEMENTS.
• MISSION FOCUSES ON THE VALUES
AND PERSPECTIVE UPON WHICH
BEING AND DOING ARE BASED.
GENERAL GUIDELINES FOR MISSION 103
STATEMENTS:
•THESESTATEMENTS SHOULD CLEARLY

INDICATE THE IMPORTANT ROLES AND
METHODOLOGIES FOLLOWED FOR
FULFILLING THE VISION.
•TECHNIQUESAND TOOLS SUCH AS AFFINITY
DIAGRAM, BRAINSTORMING, FISHBONE
DIAGRAM, AND SURVEYS SHOULD BE USED.
STRATEGY 104
•ASTRATEGY IS A WAY OF DOING

SOMETHING. IT USUALLY INCLUDES
FORMULATION OF AN OBJECTIVE AND A SET
OF ACTION PLANS FOR ACCOMPLISHMENT OF
THE OBJECTIVE.
•THESTUDY OF STRATEGIC MANAGEMENT
EMPHASIZES ON MONITORING AND
EVALUATING ENVIRONMENTAL
OPPORTUNITIES AND THREATS IN THE LIGHT
OF CORPORATION’S STRENGTHS AND
WEAKNESSES.
105
• STEP NO. 1: ANALYZE OPPORTUNITIES AND THREATS OR

CONSTRAINTS THAT EXIST IN EXTERNAL ENVIRONMENT.
• STEP NO. 2: FORMULATE STRATEGIES THAT WILL MATCH THE
ORGANIZATION’S STRENGTHS AND WEAKNESSES WITH
OPPORTUNITIES AND THREATS OR CONSTRAINTS THAT EXIST IN
EXTERNAL ENVIRONMENT.
• STEP NO. 3: IMPLEMENT THE STRATEGIES.
• STEP NO. 4: EVALUATE AND CONTROL ACTIVITIES TO ENSURE THAT
ORGANIZATIONS OBJECTIVES ARE ACHIEVED.
106
OBJECTIVES:
EVERY DEPARTMENT SHOULD HAVE WELL DEFINED
OBJECTIVES.
THIS WILL BE BASED ON WHY THE DEPARTMENT EXISTS
AND WHAT ARE ITS BROAD EXPECTED OUTCOMES.
GOAL SETTING: 107
•TOFULFILL THE OBJECTIVES, IT IS NECESSARY

THAT THE OBJECTIVES ARE SPLIT INTO SPECIFICS.
•THE CRITERIA MAY BE FUNCTIONALITY, ACTION
ETC.
•THESEGOALS ARE FOR TEAMS OF PEOPLE
INVOLVED.
THE GOALS MUST BE S-M-A-R-T : 108
•SPECIFIC: WE SHOULD BE SPECIFIC IN OUR

GOAL.
•MEASURABLE: THE GOAL MUST BE
MEASURABLE.
•ATTAINABLE: THE GOAL MUST BE
ACHIEVABLE.
•REALISTIC: THE GOAL MUST BE REALISTIC.
•TIMEBOUND: YOUR GOAL SHOULD HAVE A
TIME LIMIT
109
• GOALS ARE FOR A TEAM OF PEOPLE

INVOLVED AND MAY BE LONG TERM IN
NATURE.
• BUT THESE SHOULD BE MADE INTO A
FEW SHORT TERM AND PERSON
SPECIFIC TARGETS.
• TARGETS MAKE INDIVIDUALS MORE
COMFORTABLE WITH WHAT HE HAS TO
DO, AND WITHIN WHAT TIME FRAME HE
HAS TO ACCOMPLISH THE SAME.
110
ACTION PLANS:
DETAILED ACTION PLANS HAVE
TO BE LAID DOWN NEXT.
THIS WILL ASSIST INDIVIDUALS IN
ACHIEVING THE TARGETS.
process to achieve the targets.
111
VISION
MISSION STATEMENTS
1 2 3 4 5 6
Dept 1 Dept 2 Dept 3 Dept 4
Objectives Objectives Objectives Objectives
1 2 3 1 2 3 1 2 3 1 2 3
GOALS GOALS GOALS GOALS
TARGETS TARGETS TARGETS TARGETS
ACTION PLANs ACTION PLANs ACTION PLANs ACTION PLANs

PLANNING ORGANIZING STAFFING
CONTROLLING DIRECTING
MOTIVATING COORDINATING
7 Process of
Scientific
Management
113
PLANNING
•PLANNING IS THE PRIMARY
FUNCTION OF MANAGEMENT.
•PLANNING REFERS TO DECIDING
IN ADVANCE WHAT WILL BE
DONE IN NEAR FUTURE.
114
IN THE BUSINESS WORLD, THE

ORGANIZATION HAS TO ACHIEVE THE
OBJECTIVES AND GOALS.
IN ORDER TO ACHIEVE THESE OBJECTIVES
AND GOALS THE ORGANIZATION PLANS:
•WHAT IS TO BE DONE
•WHEN IT IS TO BE DONE
•HOW IT IS TO BE DONE
•BY WHOM IT IS TO BE DONE.
115
ORGANIZING
•IT
CAN BE DEFINED AS ARRANGING
THE WORK, PROCESSES, AUTHORITY,
RESOURCES AND EMPLOYEES IN RIGHT
ORDER, SO THAT ALL THE
ORGANIZATIONAL ACTIVITIES CAN
TAKE PLACE IN A DEFINED AND
ORDERLY MANNER.
116
• AFTER PLANNING IS COMPLETED,

WE HAVE TO BRING ALL THE
RESOURCES TOGETHER IN A
CERTAIN FORMAT, WHICH MAKES
EASY FOR US TO TAKE ACTIONS.
• AS DETAILED EARLIER, THERE ARE
FOUR RESOURCES VIZ. MEN,
MACHINES, MATERIAL AND MONEY
WHICH HAVE TO BE BROUGHT
TOGETHER IN THE PROPORTION AS
PER PLAN.
117
STAFFING:
•STAFFINGIS THE IMPORTANT FUNCTION OF
MANAGEMENT THAT INVOLVES EMPLOYING THE
RIGHT NUMBER OF PEOPLE AT THE RIGHT PLACE
WITH RIGHT SKILLS AND ABILITIES.
•ITALSO INVOLVES TRAINING AND DEVELOPMENT
OF THE PEOPLE SO THAT ORGANIZATIONAL
OBJECTIVES AND GOALS CAN BE ACHIEVED
SUCCESSFULLY.
118
• IT COMPRISES THE ACTIVITIES OF

SELECTION AND PLACEMENT OF
COMPETENT PERSONNEL.
• IN ADDITION TO SELECTION, TRAINING,
DEVELOPMENT OF PERSONNEL, IT ALSO
COMPRISES OF PROMOTION OF BEST
PERSONS, RETIREMENT OF OLD PERSONS,
PERFORMANCE APPRAISAL OF ALL THE
PERSONNEL, AND ADEQUATE
REMUNERATION OF PERSONNEL.
DIRECTING 119
•DIRECTIONINCLUDES GUIDANCE,
SUPERVISION, AND MOTIVATION OF
EMPLOYEES.
•DIRECTINGINVOLVES INFLUENCING,
ENCOURAGING, COUNSELING, MENTORING,
AND GUIDING THE EMPLOYEES TO WORK
TOWARDS THE ACCOMPLISHMENT OF
ORGANIZATIONAL OBJECTIVES AND GOALS.
120
• COMMUNICATION AND
COORDINATION
• ARE THE TWO IMPORTANT ELEMENTS.
COMMUNICATION REFERS TO VERBAL
OR NON-VERBAL INTERACTION
BETWEEN THE MANAGERS AND
SUBORDINATES.
• ON THE OTHER HAND, COORDINATION
IS DEFINED AS AN ACT OF ENABLING
DIFFERENT INDIVIDUALS TO WORK
TOGETHER FOR A COMMON GOAL.
121
• DIRECTING IS A PROCESS OF TOP DOWN

APPROACH.
• IT IS A VERTICAL PROCESS IN WHICH
ORDERS COME FROM TOP FOR THE
SUBORDINATES TO FOLLOW.
• COORDINATING IS A HORIZONTAL
FUNCTION.
• IT CREATES LINKAGES BETWEEN
DIFFERENT VERTICALS.
MOTIVATING 122
•THEWORKERS EXPECT FAVORABLE

CLIMATE CONDITIONS TO WORK, FAIR
TREATMENT, MONETARY AND NON-
MONETARY INCENTIVES, EFFECTIVE
COMMUNICATION AND GENTLEMAN
APPROACH.
123
• THE OBJECTIVES AND GOALS ARE

ACHIEVED BY MOTIVATION.
• MOTIVATION INCLUDES
INCREASING THE SPEED OF
PERFORMANCE OF A WORK AND
DEVELOPING A WILLINGNESS ON
THE PART OF WORKERS.
• THIS IS DONE BY A RESOURCEFUL
LEADER.
Controlling:
It can be defined as a function through which the
actual and desired output is measured.
If the actual output differs from the desired output,
the deviations are altogether removed or minimized.
Controlling:
The main steps in Controlling function:
Establishing performance standards
Measuring actual performance
Determining the gap between set
standards and achieved performance
Taking corrective measures
• PLANNING CAN START ONLY
126
AFTER THE GOALS ARE SET.

• PLANNING IS NOTHING BUT
TIME TABLE OF EVENTS AND
ACTIVITIES FOR DEPLOYMENT
OF RESOURCES OR
RESOURCES TO BE PUT IN
ACTION IN ORDER TO
ACHIEVE PREDETERMINED
• THE PERIOD OF PLANNING COULD BE
SHORT TERM, MID-TERM OR LONG
127
TERM.
• THE DURATION OF LONG TERM CAN
BE ONLY ONE YEAR IN CASE OF
BANKING WHEREAS IN CASE OF A
LARGE MANUFACTURING PLANT
SUCH AS STEEL PLANT SHORT TERM
ITSELF COULD BE OF TWO YEARS.
128
• WE SHOULD FIRST DO THE LONG TERM

PLANNING, AND THEN DO MID-TERM AND
THEN ONLY THE SHORT TERM PLANNING.
• PEOPLE GENERALLY TEND TO START
ACTION WITHOUT ANY PLANNING.
• THEY MAKE TOO MUCH HASTE.
CHARACTERISTICS OF PLANNING: 129
•PLANNING IS LOOKING INTO THE FUTURE.

•PLANNING INVOLVES PRE-DETERMINED
LINE OF ACTION.
•PLANNINGDISCOVERS THE BEST
ALTERNATIVE OUT OF AVAILABLE MANY
ALTERNATIVES.
•PLANNING REQUIRES CONSIDERABLE TIME
FOR IMPLEMENTATION.
•PLANNING IS A CONTINUOUS PROCESS.
OBJECTIVES OF PLANNING 130
•IT REDUCES UNCERTAINTY.

•BRINGS COOPERATION AND COORDINATION.
•BEST
UTILIZATION OF RESOURCES BRINGS
ABOUT ECONOMY IN OPERATION.
•ANTICIPATES
UNPREDICTABLE
CONTINGENCIES
•ACHIEVES PRE-DETERMINED GOALS
NATURE OF PLANNING 131
•PLANNING IS THE PRIMARY FUNCTION OF

ALL THE OTHER FUNCTIONS.
•PLANNING CONTRIBUTES TO OBJECTIVES.
•PLANNING IS AN INTELLECTUAL ACTIVITY.
•PLANNING RESULTS IN HIGHER EFFICIENCY.
•PLANNING IS DONE BY EVERY PERSON BE IT
A MD OR A FOREMAN. IT IS COMMON TO ALL.
IMPORTANCE OF PLANNING
132
•DEFECTIVEPLANNING AND INADEQUATE

PLANNING LEADS TO FAILURE OF THE
ORGANIZATION.
•THE BUSINESS UNIT HAS TO WORK IN UNCERTAIN
AND EVER CHANGING CONDITIONS. IT IS VERY
DIFFICULT TO CONTINUE THE BUSINESS UNDER
SUCH CONDITIONS.
•EFFECTIVE
PLANNING CAN ANTICIPATE THE
UNCERTAIN EVENTS AND HELP PREPARE THE
WORKFORCE TO MEET THE SITUATION TO SURVIVE.
133
ADVANTAGES OF PLANNING
•BETTER UTILIZATION OF RESOURCES

•HELPS IN ACHIEVING OBJECTIVES
•ECONOMY IN OPERATION
•MINIMIZES FUTURE UNCERTAINTIES
•IMPROVES COMPETITIVE STRENGTHS
Total Quality Management -
Meaning and Important Concepts
 What's Quality?
 Quality refers to a parameter which decides the
superiority or inferiority of a product or service. Quality
can be defined as an attribute which differentiates a product
or service from its competitors. Quality plays an essential
role in every business. Business marketers need to
emphasize on quality of their brands over quantity to
survive the cut throat competition.
 Why would a customer come to you if your competitor is
also offering the same product? The difference has to be
there in quality. Your brand needs to be superior for it to
stand apart from the rest.
 Total Quality management is defined as a continuous effort
by the management as well as employees of a particular
organization to ensure long term customer loyalty and
customer satisfaction. Remember, one happy and satisfied
customer brings ten new customers along with him whereas one
disappointed individual will spread bad word of mouth and
spoil several of your existing as well as potential customers.
 You need to give something extra to your customers to expect
loyalty in return. Quality can be measured in terms of
durability, reliability, usage and so on. TQM is a structured
effort by employees to continuously improve the quality of
their products and services through proper feedbacks and
research. Ensuring superior quality of a product or service is
not the responsibility of a single member.
 Every individual who receives his/her paycheck from the
organization has to contribute equally to design foolproof
processes and systems which would eventually ensure superior
quality of products and services.
 TQM indeed a joint effort of management, staff members,
workforce, suppliers in order to meet and exceed customer
satisfaction level. You can’t just blame one person for not adhering
to quality measures. The responsibility lies on the shoulder of
everyone who is even remotely associated with the organization.
 W. Edwards Deming, Joseph M. Juran, and Armand V.
Feigenbaum jointly developed the concept of total quality
management. Total Quality management originated in the
manufacturing sector, but can be applied to almost all
organizations.
 Total quality management ensures that every single employee
is working towards the improvement of work culture,
processes, services, systems and so on to ensure long term
success.
PDCA Approach
 Total Quality management can be divided into four

categories:
 Plan
 Do
 Check
 Act
 Also referred to as PDCA cycle.
 Planning Phase
 Planning is the most crucial phase of total quality management. In this phase employees have to come up with their problems
and queries which need to be addressed. They need to come up with the various challenges they face in their day to day
operations and also analyze the problem’s root cause. Employees are required to do necessary research and collect relevant data
which would help them find solutions to all the problems.
 Doing Phase
 In the doing phase, employees develop a solution for the problems defined in planning phase. Strategies are devised and
implemented to overcome the challenges faced by employees. The effectiveness of solutions and strategies is also measured in
this stage.
 Checking Phase
 Checking phase is the stage where people actually do a comparison analysis of before and after data to confirm the
effectiveness of the processes and measure the results.
 Acting Phase
 In this phase employees document their results and prepare themselves to address other problems.
Role of Managers in Total
Quality Management
 Total Quality Management is defined as a continuous
effort by management to upgrade and improve the
processes and systems to ensure superior quality products.
Every organization has to take care of its customers. Their
feedbacks are essential.
 Total Quality management creates processes and systems
based on customer feedbacks and various researches
which eventually help in the development of organization.
Managers play an important
role in Total Quality
Management:
1. Initiating and implementing TQM programs require great

amount of planning and research. Managers need to get trained
in various TQM practices before implementing the same. There are
costs involved with the entire process of TQM. It is the manager’s
responsibility to allocate budgets for TQM at the beginning of
every financial year. Remember, you can’t crib later on. Read a lot
about TQM.
Management:
2. You need to be convinced first why quality is such an

important parameter in every business. If you yourself are
not convinced, it would be very difficult for you to convince
other departments for implementing TQM. Know who your
customers are? Understand your target market carefully. Go
out, meet customers and find out as to what all they expect
from your brand. Customer feedbacks play an important
role in formulating strategies for total quality management.
As a manager; you need to work closely with the senior
management, human resource professionals to develop
foolproof implementation strategies. Remember, a
manager has to act as a bridge between the senior
management and the entire workforce.
Management:
3. The role of a manager is to act as a facilitator at the

workplace. It is your duty to assist employees in
implementing TQM : As a manager, it is your responsibility
to select and appoint right individuals who can work as line
managers and take charge of the entire project. The employees,
you select ought to be reliable and diligent and should be
capable enough to handle a crucial project like TQM. It is the
manager’s responsibility to assign resources for TQM, allocate
time for various training programs and appreciate employees
who come up with various improvement ideas and strategies
which would help the organization deliver superior quality
products. Further train your subordinates to ensure smooth
implementation of TQM without any obstacles.
Management:
4. A manager must communicate the benefits of TQM to
all other members of the organization. : Call employees
on a common platform and address the benefits and
importance of TQM. Make them understand how successful
implementation of TQM programs would yield high quality
products which would not only benefit the organization but
also the employees associated with the same. Why do we
always think of outsourcing trainers? Why can’t we train
employees on our own? Believe me, as a manager if you
train your employees, the results would be better rather than
an unknown face coming and loading them with
information. Do not forget, a trainer needs to be prepared
for every question. Do your homework carefully
Management:
5. Remember, a manager is always a strong source of inspiration

for other employees. You need to practice total quality
management yourself before expecting others to believe in the
same. Customer feedbacks should be carefully monitored and
taken into consideration while formulating company’s major
strategies. Provide frequent reports to staff members highlighting
scope of improvement.
Few Examples in India
 TATA STEEL – Award Winner

 M & M – Award Winner
 Quality in Manufacturing – Ranbaxy
 Quality in Marketing – Hindustan Unilever
 Quality in HRD – Infosys
 Quality in Hospitality – Oberoi Group of Hotels
R & R of Manager & its
effectiveness
Manager
 The manager is an employee who is responsible for planning, directing and
overseeing the operations and fiscal health of a business unit, division,
department, or an operating unit within an organization. The manager is
responsible for overseeing and leading the work of a group of people in
many instances.
 The manager is also responsible for planning and maintaining work
systems, procedures, and policies that enable and encourage the optimum
performance of its people and other resources within a business unit.
 Leading people is usually part of description what Manager does. But he or
she is responsible for leadership of segment of work, a sub-section of
organisations result or a functional area within the organization with or
without reporting staff.
Modern Challenges for
Managers:
 Information Technology (IT)
 Globalization
 Intellectual Capital
Leadership
 Leadership is the art of motivating a group

of people to act towards achieving a
common goal.
 The process of encouraging and helping
others to work enthusiastically towards
objectives .
 Alan Keith stated that, "Leadership is
ultimately about creating a way for people
to contribute to making something
extraordinary happen.
The essence of leadership
 Leadership refers to ability of one individual to

influence others.
 The influence is exercised to change the
behaviour of others.
 Change of behaviour is caused with an objective
of achieving a shared goal.
 The person influencing others(leader) possesses a
set of qualities or characteristics with which he
or she to influence others
 Leadership is a group phenomenon. It involves
interaction between two or more people.
Leadership & management
 Management - is a process of planning

,organising, coordinating ,directing, and
controlling the activities of others.
 Leadership - is the process of influencing
for the purpose of achieving shared goals.
 John kotter distinction :
Management Leadership
Involves coping with complexity Coping with change

Difference between Managers & Leaders
MANAGERS LEADERS
Administer Innovate
Maintain Develop
Control Inspire
Short term view Long term view
Ask how & when Ask what & why
Initiate Originate
Accept the status quo Challenge the status quo
Do things right Do right things.

Importance of Leadership
 Leadership transforms potential into reality .
 Leadership is not mere using people and their

potential for realising an organisation’s goals. It
has the ultimate aim of raising the level of human
conduct and ethical aspiration of both the leader
and the led.
 The leader should elevate,inspire, and evangelise
his followers to higher things in life.
Formal leadership
 Occurs when a manager leads by exercising formal
authority.
 The exercise of formal authority through assigning duties
derives,from the managers official position within the
organisation’s hierarchy of authority.
 Any employee who is assigned a managerial position has the
opportunity and responsibility to exercise formal
leadership
Informal leadership
 Arises when a person without formal authority is
influential in directing the behavious of others. Although
not formally appointed or elected he becomes a leader
through his actions or personal attractions.
Leadership/Managerial Styles
No style is better, or worse...
No one style of leadership fits all situations, so it helps to have an
understanding of other styles.
No one style is better than another
By learning about the pros and cons of each style, you can adapt your
approach to your situation
10 Types of Leaders
1. Transactional leadership.
2. Autocratic leadership.
3. Bureaucratic leadership.
4. Charismatic leadership.
5. Democratic/participative leadership.
6. Laissez-faire leadership.
7. Task-oriented leadership.
8. People/relations-oriented leadership.
9. Servant leadership.
10. Transformational leadership
Transactional Leadership
Transactional Leadership style starts with the idea that team
members agree to obey their leader when they accept a job.
The "transaction" usually involves the organization paying
team members in return for their effort and compliance. The
leader has a right to "punish" team members if their work
doesn't meet an appropriate standard.
The Transactional Leader
Pros & Cons
Transactional leadership offers some benefits.
1. This leadership style clarifies everyone's roles and responsibilities.
2. People who are ambitious or who are motivated by external rewards –
including compensation – often thrive.
The Transactional Leader
Pros & Cons
The downside of this leadership style is that team members can
do little to improve their job satisfaction. It can feel stifling,
and it can lead to high staff turnover.
Transactional leadership is really a type of management, not a
true leadership style, because the focus is on short-term tasks.
It has serious limitations for knowledge-based or creative
work. However, it can be effective in other situations.
Autocratic Leadership
Autocratic Leadership is an extreme form of leadership, where leaders have
complete power over their people.
Staff and team members have very room to make suggestions, even if those
suggestions would be in the best interest of the group.
Pros & Cons
The benefits of the autocratic leadership style is that it is best used in crisis.
It can be an efficient and effective tool when quick decisions are needed, and
work needs to get done.
Pros & Cons
The downside to this form of leadership is that people may resent being
treated this way.
Consistently using this style may lead to a loss of team members, and high
turn over. It is best used to accomplish routine tasks. In those instances,
the advantages may outweigh the disadvantages.
Bureaucratic Leadership
Bureaucratic leaders work "by the book." They follow rules rigorously, and
ensure that their people follow procedures precisely.
Bureaucratic leadership is also useful in organizations where employees do

routine tasks (as in manufacturing).
Bureaucratic Leadership
Pros & Cons
Much of the time, bureaucratic leaders achieve their position because of their
ability to conform to and uphold rules, not because of their qualifications
or expertise. This can cause resentment when team members don't value
their expertise or advice.
The downside of this leadership style is that it's ineffective in teams and
organizations that rely on flexibility, creativity, or innovation.
Charismatic Leadership
Charismatic leadership style can resemble transformational leadership
because these leaders inspire enthusiasm in their teams and are energetic in
motivating others to move forward.
Examples of Charismatic
Leadership
1. A leader who believes more in him/herself than in the team
2. A person who simply wants to make a name for him/herself
3. This type of leader considers the success of the team as being contingent on
the leaders presence.
Charismatic Leadership
A charismatic leader might believe that he/she can do no wrong, even when
others are warning them about the path they are on.
This feeling of invincibility can ruin a team or an organization.

Democratic/Participative Leadership
Democratic leaders make the final decisions, but they include team members
in the decision-making process.
They encourage creativity, and team members are often highly engaged in
projects and decisions.
Democratic/Participative
Leadership
There are many benefits of democratic leadership. Team members tend to have
high job satisfaction and are productive because they're more involved in
decisions. This style also helps develop people's skills.
Because participation takes time, this approach can slow decision-making, but
the result is often good. The approach can be most suitable when working
as a team is essential, and when quality is more important than efficiency
or productivity.
Democratic/Participative
Leadership
The downside of democratic leadership is that it can often hinder situations
where speed or efficiency is essential. For instance, during a crisis, a team
can waste valuable time gathering people's input. Another downside is that
some team members might not have the knowledge or expertise to provide
high quality input.
Laissez-Faire Leadership
This French phrase means

"leave it be," and it
describes leaders who
allow their people to work
on their own. This type of
leadership can also occur
naturally, when managers
don't have sufficient control
over their work and their
people.
Laissez-Faire Leadership
This leadership style can be effective if the leader monitors performance and
gives feedback to team members regularly. It is most likely to be effective
when individual team members are experienced, skilled, self-starters.
The downside is that it can be damaging if team members don't manage their
time well or if they don't have the knowledge, skills, or motivation to do
their work effectively.
Task-Oriented Leadership
Task-oriented leaders focus only on getting the job done and can be autocratic.
They actively define the work and the roles required, put structures in
place, and plan, organize, and monitor work. These leaders also perform
other key tasks, such as creating and maintaining standards for
performance.
Task-Oriented Leadership
The benefit of task-oriented leadership is that it ensures that deadlines are met,
and it's especially useful for team members who don't manage their time
well.
However, because task-oriented leaders don't tend to think much about their
team's well-being, this approach can suffer many of the flaws of autocratic
leadership, including causing motivation and retention problems.
People-Oriented/Relations-Oriented
Leadership
With people-oriented leadership, leaders are totally focused on organizing,
supporting, and developing the people on their teams.
This is a participatory style and tends to encourage good teamwork and

creative collaboration. This is the opposite of task-oriented leadership.
Leadership
People-oriented leaders treat everyone on the team equally.
They're friendly and approachable, they pay attention to the welfare of

everyone in the group, and they make themselves available whenever team
members need help or advice.
Leadership
The benefit of this leadership style is that people-oriented leaders create teams
that everyone wants to be part of. Team members are often more
productive and willing to take risks, because they know that the leader will
provide support if they need it.
The downside is that some leaders can take this approach too far; they may put
the development of their team above tasks or project directives.
Servant Leadership
This term, created by Robert Greenleaf in the 1970s, describes a leader often
not formally recognized as such.
When someone at any level within an organization leads simply by meeting

the needs of the team, he or she can be described as a "servant leader."
Servant Leadership
In many ways, servant leadership is a form of democratic leadership because

the whole team tends to be involved in decision making.
However, servant leaders often "lead from behind," preferring to stay out of
the limelight and letting their team accept recognition for their hard work
Servant Leadership
Although you can use servant leadership in many situations, it's often most
practical in politics, or in positions where leaders are elected to serve a
team, committee, organization, community, or ministry.
Transformational Leadership
Transformational leaders are inspiring because they expect the best from
everyone on their team as well as themselves. This leads to high
productivity and engagement from everyone in their team.
As the "vision caster" the leader inspires others to manifest the vision.
Final Thoughts...
1. Leadership skills can be learned, even for those who don't consider
themselves to be "born leaders"
2. You are already a leader, because there are people within your circle of co-
workers, friends, and family, that you influence by your actions/words
3. Understanding your personality will help you perfect your default
leadership style
Level 5 Leadership
 Level5 leadership is a concept developed in the
book Good to Great.
 Level 5 leaders display a powerful mixture of
personal humility and indomitable will. They're
incredibly ambitious, but their ambition is first and
foremost for the cause, for the organization and its
purpose, not themselves.
Who exactly is a Level 5 leader?
 Collins describes Level 5 leader as Humility + Will = Level 5.
 They are the nurturing leaders who do not want credit but
want success to sustain over a longer period of time, long after
they are gone.
 Level 5 leaders are modest, shy and fearless and possess
the capability to transform an organization from good to
great without portraying themselves as wizards with magic
wands. They prefer talking about the company and the
contribution of other people but rarely about their role or
achievements.
 What is Personal Humility?
 Humility is the personal honesty that you, as the
leader, do not know everything and do not have all
the answers. ... It is certainly not a coincidence that in
Good to Great, Jim Collins identifies the
characteristics of the best leaders as possessing: A
paradoxical blend of personal humility and
professional will.
 Personal Humility  Professional Will
 Demonstrates a compelling modest,  Creates superb results, a clear
shunning public adulation, catalyst in transformation from
good to great.
 Acts with quiet, calm
determination, relies principally on  Demonstrates an unwavering
inspired standards, not inspiring resolve to do whatever must be
charisma, to motivate. done to produce the best long term
results, no matter how difficult.
 Channels ambition into the
company not the self, sets up more  Sets the standard of building an
successors for even more greatness enduring great company, will settle
in the next generation. for nothing less.
 Look into the mirror not the  Look out of the window , not in the
window, to apportion mirror, to apportion credit for the
responsibility for poor results, success of the company – to other
never blaming other people, people, external factors & good luck.
external factors or bad luck.
 The Level 5 leadership clearly reestablishes the facts about a simply living and
high thinking with an emphasis on personal humility taught by the older
generations. The financial breakthroughs achieved by level 5 leaders prove that
these characteristics can achieve tangible results as well.
 The most important example in this context can be cited of great world leaders
like M.K. Gandhi and Abraham Lincoln, who always put their vision ahead of
their egos. They came across as shy and defenseless people in their mannerism
and speech but were hardly so when it came to actions.
 The other example from the business leaders who fitted perfectly into this
category was Darwin E Smith who was the CEO of the paper company
Kimberly-Clark and turned it around to become the biggest consumer paper
product company. He was a unique mix of personal humility and will;
combined with risk taking ability which made him a role model for the
business leaders of today.
Certain actions performed by Level 5 leaders which separate them
from the rest of the leaders and senior executives
 The first step if their ability to identify and include right people
with them towards achieving goals. Unlike the traditional method of
building strategies and then looking for the right people to carry
them out, they take a different route. It’s about getting the right
people on board and then deciding on the destination.
 They also do not shy away from facing and accepting brutal
truths and realities of data, numbers and situations but at the same
time they do not lose hope of a better future.
 They also strive towards aligning consistent efforts towards a
goal, rather than giving one massive push they believe in small but
firm pushes to bring in the momentum.
Certain actions performed by Level 5 leaders which separate them
from the rest of the leaders and senior executives
 They also exercise their judgment to understand an aspect, in

depth and thoroughly, rather than burdening themselves with
myriad information.
 They practice and encourage a disciplined approach
towards their work life and as visionaries use carefully
identified technologies to give their businesses strategic
advantage.
Can Level 5 leadership be learnt, if
yes then how?.
 According to Collins it is farfetched to suitably see whether it can be
learnt or not but he surely identifies two categories of people, one
who have the Level 5 Leadership in them, dormant, latent or
unexpressed and others who do not have it.
 So leaders who cannot look beyond their personal role, fame,
achievements etc can hardly become Level 5 leaders.
 Only when they can put the larger good ahead of them, they
transcend to the next level. This transition is not general but can be
brought by some tragic accident, near death experiences or a life
changing incident, as came across by Collins in his research.
Ex 1 – Cain as a Level 5 Leader
George Cain (Cain), the CEO of Abbott laboratories was a level 5 leader. When he became the CEO,
Abbott laboratories was a family run mediocre organization. It was among the bottom one-fourth of
Pharmaceutical industry. The company had only one good product: erythromycin. After taking
charge, the first thing Cain did was to raise the performance bar. He inspired higher standards of
performance, while showing intolerance for complacency. He never accepted the premise that "good
is good enough." In the 14 years he was at the helm, he drove the company with relentless ambition
and professional will. Cain identified immediately after taking up the job that the reason for Abbott's
mediocrity was nepotism.
Then he started systematic rebuilding of the executive team and board. He made sure that family
relation is no more a shortcut to higher position in the company. He made it very clear that any
executive in the company must be the best in the whole industry, within a span of responsibility. He
fired every executive who was not upto the standard. This sort of ruthlessness can be expected only
from an outsider who joined as the CEO. But Cain was an insider for 18 years. He was a member of
family that previously ran Abbott laboratories. In the end, even the family was happy as the
company performed 4.5 times the general market between 1974 and 2000. Blue chip companies like
Merck and Pfizer performed only twice the general market in this period.
Ex 2 - Ken Iverson
In the 1970s and 1980s American steel firms faced a lot of problems due to cheap
imports coming from Japan and other countries. The CEO of Bethlehem steel put
the blame on imports for poor performance of the company. In contrast, Ken
Iverson (Iverson) the CEO of Nucor saw it as a blessing. He said that domestic steel
companies have a huge advantage compared to the imported steel which have to be
shipped all the way across the ocean, which involves huge cost. Iverson even spoke
against the protection given to domestic steel industry.
The root of all the problems facing the domestic steel companies according to
Iverson was management's inability to change. He felt that the domestic companies
were not doing well because they failed to adapt the changing technology. This is
the difference between Ken Iverson, a level 5 leader according to whom
incompetence in management was the reason for the poor performance of steel
plants in the USA while according to others cheap imports was to be blamed.
Ex 3 The Secret of Wells Fargo
Wells Fargo showed remarkable performance over a period of 15 years starting from 1983. But
according to Jim Collins, the foundation for this exceptional performance was laid way back in
early 1970s. It was then when Cooley ventured on a mission to build the best talented management
team in the banking industry. Cooley was sure of impending radical change in the banking
industry. But he did not have any exact idea as to how the change is going to be. To adjust to this
change he along with Ernie Arbuckle, Chairman of Wells Fargo went on talent hunt.
They recruited talented people in the industry whenever and wherever they found them, even when
they had no specific job for them. Cooley explains the rationality of his approach:
"That's how you build the future. If I'm not smart enough to see the changes that are coming, they
will. And they'll be flexible enough to deal with them." Nobody in the industry succeeded in
predicting the change. But no company in the banking industry adapted itself to the change as well
as Wells Fargo did. When the sector performed 59% below the general stock market, Wells Fargo
performed three times the general stock market.
Strategic
Management
What is Strategic Management?
 Strategic Management is all about identification and description of the

strategies that managers can carry so as to achieve better performance and a
competitive advantage for their organization.
 An organization is said to have competitive advantage if its profitability is
higher than the average profitability for all companies in its industry.
 Strategic management can also be defined as a bundle of decisions
and acts which a manager undertakes and which decides the result
of the firm’s performance.
 The manager must have a thorough knowledge and analysis of the
general and competitive organizational environment so as to take
right decisions.
 They should conduct a SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), i.e., they should make best possible utilization
of strengths, minimize the organizational weaknesses, make use of arising
opportunities from the business environment and shouldn’t ignore the
threats.
 Strategic management is nothing but planning for both predictable as
well as unfeasible contingencies. It is applicable to both small as well as
large organizations as even the smallest organization face competition
and, by formulating and implementing appropriate strategies, they can
attain sustainable competitive advantage.
 It is a way in which strategists set the objectives and
proceed about attaining them.
 It deals with making and implementing decisions about
future direction of an organization.
 It helps us to identify the direction in which an
organization is moving.
 Strategic management is a continuous process that evaluates and
controls the business and the industries in which an organization is
involved; evaluates its competitors and sets goals and strategies to
meet all existing and potential competitors; and then reevaluates
strategies on a regular basis to determine how it has been
implemented and whether it was successful or does it needs
replacement.
 Strategic Management gives a broader perspective to the
employees of an organization and they can better understand how
their job fits into the entire organizational plan and how it is co-
related to other organizational members.
 It is nothing but the art of managing employees in a manner which
maximizes the ability of achieving business objectives. The employees
become more trustworthy, more committed and more satisfied as they
can co-relate themselves very well with each organizational task. They
can understand the reaction of environmental changes on the
organization and the probable response of the organization with the
help of strategic management.
 Thus the employees can judge the impact of such changes on their own
job and can effectively face the changes. The managers and employees
must do appropriate things in appropriate manner. They need to be
both effective as well as efficient.
 One of the major role of strategic management is to incorporate
various functional areas of the organization completely, as well as,
to ensure these functional areas harmonize and get together well.
 Another role of strategic management is to keep a continuous eye
on the goals and objectives of the organization.
 The word “strategy” is derived from the Greek word “stratcgos”;
stratus (meaning army) and “ago” (meaning leading/moving).
 Strategy is an action that managers take to attain one or more of the
organization’s goals. Strategy can also be defined as “A general
direction set for the company and its various components to achieve a
desired state in the future. Strategy results from the detailed strategic
planning process”.
 Strategy can also be defined as knowledge of the goals, the
uncertainty of events and the need to take into consideration the likely
or actual behavior of others.
 Strategy is the blueprint of decisions in an organization that shows its
objectives and goals, reduces the key policies, and plans for achieving
these goals, and defines the business the company is to carry on, the
type of economic and human organization it wants to be, and the
contribution it plans to make to its shareholders, customers and society
at large.
Features of Strategy
 1. Strategy is Significant because it is not possible to foresee the future.

Without a perfect foresight, the firms must be ready to deal with the
uncertain events which constitute the business environment.
 2. Strategy deals with long term developments rather than routine
operations, i.e. it deals with probability of innovations or new products,
new methods of productions, or new markets to be developed in future.
 3. Strategy is created to take into account the probable behavior of
customers and competitors. Strategies dealing with employees will predict
the employee behavior.
 Strategy is a well defined roadmap of an organization. It defines the
overall mission, vision and direction of an organization. The objective of a
strategy is to maximize an organization’s strengths and to minimize the
strengths of the competitors.
 Strategy, in short, bridges the gap between “where we are” and “where we
want to be”.
Strategic Decisions
Strategic Decisions -
Definition and
Characteristics
Strategic decisions are the decisions that are concerned with whole

environment in which the firm operates, the entire resources and
the people who form the company and the interface between the
two.
Characteristics/Features of
Strategic Decisions
 Strategic decisions have major resource propositions for an
organization. These decisions may be concerned with
possessing new resources, organizing others or reallocating
others.
 Strategic decisions deal with harmonizing organizational
resource capabilities with the threats and opportunities.
 Strategic decisions deal with the range of organizational
activities. It is all about what they want the organization to
be like and to be about.
 Strategic decisions involve a change of major kind since an
organization operates in ever-changing environment.
Characteristics/Features of
Strategic Decisions
 Strategic decisions are complex in nature.
 Strategic decisions are at the top most level, are uncertain as
they deal with the future, and involve a lot of risk.
 Strategic decisions are different from administrative and
operational decisions. Administrative decisions are routine
decisions which help or rather facilitate strategic decisions
or operational decisions. Operational decisions are technical
decisions which help execution of strategic decisions.
 Eg; To reduce cost is a strategic decision, which is achieved
through operational decision of reducing the number of
employees and how we carry out these reductions will be
administrative decision.
Strategic Decisions Administrative Decisions Operational Decisions
Strategic decisions are long-term decisions. Administrative decisions are taken daily. Operational decisions are not frequently taken.
These are considered where The future planning is These are short-term based Decisions. These are medium-period based decisions.
concerned.
Strategic decisions are taken in Accordance with These are taken according to strategic and operational These are taken in accordance with strategic and
organizational mission and vision. Decisions. administrative decision.
These are related to overall Counter planning of all These are related to working of employees in an These are related to production.
Organization. Organization.
These deal with organizational Growth. These are in welfare of employees working in an These are related to production and factory growth.
organization.
Role of strategists
 Strategists are individuals or groups who are primarily involved in the formulation,
implementation, and evaluation of strategy. In a limited sense, all managers are
strategists. There are persons outside the organization who are also involved in
various aspects of strategic management. They too are referred to as strategists. We
can identify nine strategists who, as individuals or in groups, are concerned with and
play a role in strategic management.
 1. Consultants
 2. Entrepreneurs
 3. Board of Directors
 4. Chief Executive Officer
 5. Senior management
 6. Corporate planning staff
 7. Strategic business unit (SBU) level executives
 8. Middle level managers
 9. Executive Assistant
 1. Consultants: Many organizations which do not have a corporate
planning department owing to reasons like small size, infrequent
requirements, financial constraints, and so on, take the help of external
consult-ants in strategic management. Besides the Indian consultancy
firms, such as, A.F.Ferguson, S.B. Billimoria and several others, now
there are many foreign consultancy firms. They offer a variety of
services.

McKinsey and Company, specializes in offering consultancy in the
areas of fundamental change management and strategic visioning;
Andreson Consulting, is in business restructuring and info tech and
systems; Boston Consulting helps in building competitive advantage;
and KPMG Peat Marwick is in strategic financial management and
feasibility studies for strategy implementation.

 2. Entrepreneurs are promoters who conceive the idea of starting a business enterprise
for getting maximum returns on their investment. They are waiting for an
environment change and thereby for an opportunity to exploit the situation in their
best interest. Thus they start playing their role right from the promotion of the
proposed venture. So, their strategic role to make the venture a success is very
conspicuous in a new business enterprise. Therefore, it is expected of an entrepreneur
that he should posses foresight, sense of responsibility, desire to work hard and
dashing spirit to bear any future contingencies. According to Drucker, “the
entrepreneur always searches for change, responds to it and exploits it as an
opportunity”. Here is an example of a successful women entrepreneur.
Kiran Mazumdar Shaw, a young entrepreneur, set up an export-oriented unit
manufacturing a range of enzymes. As an expert in brewing technology, Mazumdur
entered the field of biotechnology after experiencing problems in getting a job. Later
she set up another plant for manufacturing two new enzymes created by her own
research and development (R&D) department. As managing director, Mazumdar was
actively involved in all aspects of policy formulation and implementation for her
companies
 3. Board of Directors are professionals elected on the Board
of Di-rectors (BOD) by the shareholders of the company as
per rules and regulations of the Companies Act. They are
responsible for the general administration of the organization.
They are supposed to guide the top management in framing
business strategies for accomplishing predetermined
objectives. It is also the responsibility of the Board to review
and evaluate organizational performance whether it is as per
the strategy laid down or not. The Board is also empowered
to make appointments of senior executives. In this
connection, it should be noted that the success of strategies
much depends on the relative strength in terms of power held
by the Board and the Chief Executive (CE).
 4. Chief Executive Officer: In the management circle, the chief executive is
the top man, next to the directors of the Board. He occupies the most
sensitive post, being held responsible for all aspects of strategic
management right from formulation to evaluation of strategy. He is
designated in some companies as the managing director, executive director
or as a general manager. Whatever the designation be, he is considered the
most important strategist being responsible to play major role in strategic
decision-making.
 5. Senior Management: Starting from the chief executive to the level of
functional or profitcentre heads, these managers are involved in various
aspects of strategic management. Some of the members of the senior
management act as directors on the board usually on a rotational basis. All
of them serve on different top-level committees set up by the board to look
after matters of strategic importance and other policy issues. Executive
committees, consisting of senior managers, are responsible for
implementing strategies and plans, and for a periodic evaluation of
performance.
 Strategic planning at MRF Ltd. used senior management expertise by
dividing them into five groups dealing with products and markets,
environment, technology, resources, and manpower. Each group had a
leader who helped to prepare position papers for presentation to the board.
The executive directors in the company were actively involved in SWOT
analysis through the help of managers and assistant managers.
 6. SBU level executives: “SBU” stands for strategic business unit.
Under this approach, the main business unit is divided into
different independent units and is allowed to form their own respective
strategies. In fact, the business is diversified and thus the departmental
heads are supposed to act as the main strategist, keeping an eye on
optimum benefit for their departments. Hence strategists i.e., the
departmental heads enjoy the maximum amount of authority and
responsibility within their strategic business units.

At Shriram Fibres, the strategic planning system covered the different
businesses ranging from nylon yarn manufacture to the provision of
financial services. Strategic plans were formulated at the level of each
SBU as well as at the corporate level. The corporate planning
department at the head office coordinated the strategic planning
exercise at the SBU-level. Each SBU had its own strategic planning
cell.

 7. Corporate-planning staff plays a supporting role in
strategic management. It assists the management in all
aspects of strategy formulation, implementation and
evaluation. Besides this, they are responsible for the
preparation and communication of strategic plans, and for
conducting special studies and research pertaining to
strategic management.
 It is important to note that the corporate planning
department is not responsible for strategic management and
usually does not initiate the process on its own. By
providing administrative support, it fulfills its functions of
assisting the introduction, working, and maintenance of the
strategic management system.
 8. Middle level managers: They are basically operational
planners they may, at best, be involved as ‘sounding boards’
for departmental plans, as implementers of the decisions
taken above, followers of policy guidelines, and passive
receivers of communication about functional strategic plans.
As they are basically involved in the implementation of
functional strategies, the middle-level mangers are rarely
employed for any other purpose in strategic management.

 9. Executive Assistant: An executive assistant is a person
who assists the chief executive in the performance of his
duties in various ways. These could be : to assist the chief
executive in data collection & analysis, suggesting
alternative where decisions are required, preparing various
proposals, projects & reports, helping in public relations &,
liaison functions, coordinating activities with the internal
staff & outsiders & acting as a filter for information coming
from different sources.
Benefits of Strategic
Management
 There are many benefits of strategic management and they include
identification, prioritization, and exploration of opportunities. For
instance, newer products, newer markets, and newer forays into
business lines are only possible if firms indulge in strategic planning.
Next, strategic management allows firms to take an objective view of
the activities being done by it and do a cost benefit analysis as to
whether the firm is profitable.
 Just to differentiate, by this, we do not mean the financial benefits
alone but also the assessment of profitability that has to do with
evaluating whether the business is strategically aligned to its goals and
priorities.
 The key point to be noted here is that strategic management allows a
firm to orient itself to its market and consumers and ensure that it is
actualizing the right strategy.
Financial Benefits
 It has been shown in many studies that firms that engage in strategic
management are more profitable and successful than those that do not
have the benefit of strategic planning and strategic management.
 When firms engage in forward looking planning and careful evaluation
of their priorities, they have control over the future, which is necessary
in the fast changing business landscape of the 21st century.
 It has been estimated that more than 100,000 businesses fail in the US
every year and most of these failures are to do with a lack of strategic
focus and strategic direction. Further, high performing firms tend to
make more informed decisions because they have considered both the
short term and long-term consequences and hence, have oriented their
strategies accordingly. In contrast, firms that do not engage themselves
in meaningful strategic planning are often bogged down by internal
problems and lack of focus that leads to failure.
Non-Financial Benefits
 The section above discussed some of the tangible benefits of strategic

management. Apart from these benefits, firms that engage in strategic
management are more aware of the external threats, an improved
understanding of competitor strengths and weaknesses and increased
employee productivity. They also have lesser resistance to change and
a clear understanding of the link between performance and rewards.
 The key aspect of strategic management is that the problem solving
and problem preventing capabilities of the firms are enhanced through
strategic management. Strategic management is essential as it helps
firms to rationalize change and actualize change and communicate the
need to change better to its employees. Finally, strategic management
helps in bringing order and discipline to the activities of the firm in its
both internal processes and external activities.
Closing Thoughts
 In recent years, virtually all firms have realized the

importance of strategic management. However, the key
difference between those who succeed and those who fail is
that the way in which strategic management is done and
strategic planning is carried out makes the difference
between success and failure. Of course, there are still firms
that do not engage in strategic planning or where the
planners do not receive the support from management.
These firms ought to realize the benefits of strategic
management and ensure their longer-term viability and
success in the marketplace.
Social
Responsibility –
CSR
Social Responsibility
 The obligation of organizations management

towards the welfare & interest of the society
in which it operates.
 In other words its
is defined as the duty of
business to do no harm to society.
Types of SR
 Economic aspects. Companies need to maintain strong economic interests so they can stay in business.
Being profitable and providing value to shareholders is part of a company being socially responsible.
 Legal aspects. A company must follow the law and have a legal obligation to do so. For example, car
companies are required to meet a certain level of emissions standards in car production.
 Ethical aspects. Acting ethically means going above and beyond the legal requirements and meeting the
expectations of society. In a recent example, Apple Inc. policies were questioned when it was discovered
the high suicide rate of workers producing iPhones in the Chinese Foxxconn factory. As a result of the
newfound awareness, Foxxconn raised the salary for workers from 900 yuan ($143) to 1,800 yuan. In
other words, the ethical expectations (and outrage) of society can encourage companies to act ethically.
 Philanthropic aspects. This is the expectation that companies should give back to society in the form of
charitable donations of time, money, and goods. Some organizations, donate certain % of profit and
thousands of hours to nonprofit community groups each year.
 Based on these areas, many believe business should go above and beyond the law
to act ethically, meet expectations of society, and even go beyond by donating profit
back to the communities in which the businesses operate.
 As we mentioned at the start of this section, businesses are not the only ones who
engage in social responsibility.
 Since people run businesses, often we see business social responsibility initiatives
that are directly related to individuals in the organization.
 For example, the Body Shop founder, Anita Roddick,Lyall, S. (2007, September
12). Anita Roddick, founder of the Body Shop, dies at 64, cared deeply for the
environment and for animals, and as a result, her organization (now owned by
L’Oreal) focused on environmentally friendly products and products that did not test
on animals. This is an example of how social responsibility in organizations can be
a direct result of the individual’s care and concern.
Individual SR
 As individuals, our emotional intelligence skills, such as social awareness and

empathy, can be shown through our use of social responsibility efforts within an
organization but also through our personal social responsibility efforts.
 ISR (individual social responsibility) is defined as an individual being aware of how
personal actions have an effect on the community. ISR can include the following:
 Charitable acts, including philanthropy such as donation of money.
 Working for the community, such as volunteering, giving blood donations, and
working at a food bank or animal shelter.
 Supporting issues that affect society, such as advocating political or social issues that
can help others—for example, advocating for child labour laws, purchasing fair trade
products, recycling.
 Individual ethics, such as integrity and honesty. These individual ethics can also
include the “golden rule”: treat others how you wish to be treated. This might mean
with empathy and a sense of fairness.
 Engaging in ISR activities such as these can help us develop our
emotional intelligence skills through the use of social awareness—that is,
understanding how our actions can affect others and engaging in empathy
for others.
 In addition, we can build our self-esteem and self-perception by helping
others.
 Individual and corporate social responsibility and engaging in socially
responsible activities.
 To improve human relations skills, we must understand that ethics, social
responsibility, and emotional intelligence skills are intertwined with each
other. Those who continually develop their emotional intelligence skills will
likely engage in ethical and socially responsible behavior, both personally
and as leaders of their organizations.
CSR – Corporate Social
responsibility
CSR
 Following companies shall do CSR :

 Net worth of rupees 500 cr or more or
 Turnover of rupees 100 cr or more or
 Net profit of rupees 500 cr or more
 Formation of committee of 3 Directors out of 1 has to be independent director
 Board to ensure that atleast 2% of avg net profit of last 3 years is spent by the company on CSR
activities every financial year, else reasons for not spending to be specified in the Board’s report
signed by Director & Company Secretary .
 Monitor the CSR Policy from time to time
 If company fails to provide or spend such amount, the Board to specify reasons for not spending
the amount in its report
Few Examples @ Global level
 Lego
 Lego will invest $150 million over the next 15 years with a focus on
addressing climate change and reducing waste. It has reduced their
packaging as well as investing in an alternative energy source and plans to
source 100% renewable energy by 2020. To accomplish this the company
will hire a team to support its commitment to using sustainable materials
and plans to reach a 90% recycling rate.
 TOMS
 TOMS mission is to donate a pair of shoes for every pair they sell and has
resulted in the donation of over 60 million pairs of shoes to children in
need. Profits are used to assist the visually-impaired by providing
prescription glasses and medical treatments, provide'safe' drinking water
and build businesses in developing countries to create jobs. They are also
strong anti-bullying advocates and work with several non-governmental
organizations and nonprofits to set examples of ethical behavior.
Few Examples @ India
 Tata Group
 The Tata Group conglomerate in India carries out various CSR
projects, most of which are community improvement and poverty
alleviation programs. Through self-help groups, it has engaged in
women empowerment activities, income generation, rural community
development, and other social welfare programs. In the field of
education, the Tata Group provides scholarships and endowments for
numerous institutions.
 The group also engages in healthcare projects, such as the facilitation
of child education, immunization, and creation of awareness of AIDS.
Other areas include economic empowerment through agriculture
programs, environment protection, providing sports scholarships, and
infrastructure development, such as hospitals, research centers,
educational institutions, sports academy, and cultural centers.
 Mahindra & Mahindra
 Indian automobile manufacturer Mahindra & Mahindra
(M&M) established the K. C. Mahindra Education Trust in
1954, followed by Mahindra Foundation in 1969 with the
purpose of promoting education. The company primarily
focuses on education programs to assist economically and
socially disadvantaged communities.
 Its CSR programs invest in scholarships and grants, livelihood
training, healthcare for remote areas, water conservation, and
disaster relief programs. M&M runs programs such as Nanhi
Kali focusing on education for girls, Mahindra Pride Schools
for industrial training, and Lifeline Express for healthcare
services in remote areas.
Ethics
 Management Ethics' is related to social responsiveness of a

firm. It is “the discipline dealing with what is good and bad,
or right and wrong, or with moral duty and obligation. It is a
standard of behaviour that guides individual managers in
their works”.
o HONESTY
o INTEGRITY
o PROMISE-KEEPING & TRUSTWORTHINESS
o LOYALTY
o FAIRNESS
o RESPECT FOR OTHERS
o LAW ABIDING
o COMMITMENT TO EXCELLENCE
o LEADERSHIP
o 12 Ethical Principles for
REPUTATION AND MORALE
o ACCOUNTABILITY.
Business Leaders/Managers
Code of Conduct & Ethics
 A code of conduct defines how a company's employees should

act on a day-to-day basis. It reflects the organization's daily
operations, core values and overall company culture. ... Writing
a great code of conduct requires a
 The five fundamental principles
 1) Integrity.
 2) Objectivity. ...
 3) Professional competence and due care. ...
 4) Confidentiality. ...
 5) Professional behaviour.
 thorough understanding of the company, its culture and vision.
 Lengthwise, code of ethics is a shorter document than a
code of conduct.
 Code of Ethics regulates the judgment of the
organisation while a code of conduct regulates the
actions. ...
 Code of Ethics focuses on values or principles. On the
other hand, Code of Conduct is focused on compliance
and rules
 Management Ethics' is related to social responsiveness
of a firm. It is “the discipline dealing with what is good
and bad, or right and wrong, or with moral duty and
obligation. It is a standard of behaviour that guides
individual managers in their works”.
Change
Management
 Change management is a systematic approach to dealing with the
transition or transformation of an organization's goals, processes or
technologies.
 The purpose of change management is to implement strategies for
effecting change, controlling change and helping people to adapt to
change.
 Such strategies include having a structured procedure for
requesting a change, as well as mechanisms for responding to requests
and following them up.
 To be effective, the change management process must take into consideration
how an adjustment or replacement will impact processes, systems, and
employees within the organization.
 There must be a process for planning and testing change, a
process for communicating change, a process for scheduling and implementing
change, a process for documenting change and a process for evaluating its
effects.
 Documentation is a critical component of change management, not only to
maintain an audit trail should a rollback become necessary but also to ensure
compliance with internal and external controls, including
regulatory compliance
Types of organizational
change
 Change management can be used to manage many types of organizational
change. The three most common types are:
 Developmental change - Any organizational change that improves on previously
established processes and procedures.
 Transitional change - Change that moves an organization away from its current
state to a new state in order to solve a problem, such as mergers and acquisitions
and automation.
 Transformational change - Change that radically and fundamentally alters the
culture and operation of an organization. In transformational change, the end
result may not be known. For example, a company may pursue entirely different
products or markets.
 As a conceptual business framework for people, processes and the organization, change
management increases the success of critical projects and initiatives and improves a
company’s ability to adapt quickly.
Business change is constant and inevitable, and when poorly managed has the potential to
Importance and effects of change

cause organizational stress as well as unnecessary, and costly re-work.
By standardizing the consistency and efficiency of assigned work, change management
management
assures that the people asset of an organization is not overlooked. As changes to work occur,
change management helps employees to understand their new roles and build a more process-
driven culture.
 Change management also encourages future company growth by allowing it to remain
dynamic in the marketplace.
Popular models for managing
change
 Best practice models can provide guiding principles and help managers align
the scope of proposed changes with available digital and nondigital tools.
Popular models include:
 A) ADKAR: The ADKAR model, created by Prosci founder Jeff Hiatt,
consists of five sequential steps:
 Awareness of the need for change;
 Desire to participate in and support the change;
 Knowledge about how to change;
 Ability to implement change and behaviors; and
 Reinforcement to sustain the change.
 B) Bridges' Transition Model: Change consultant William
Bridges' model focuses on how people adjust to change. The
model features three stages: a stage for letting go, a stage
of uncertainty and confusion and a stage for acceptance.
Bridges' model is sometimes compared to the Kübler-Ross
five stages of grief (denial, anger, bargaining, depression
and acceptance).
 C) IT Infrastructure Library (ITIL): The U.K. Cabinet
Office and Capita plc oversee a framework that includes
detailed guidance for managing change in IT operations and
infrastructure.
 D) Kotter's 8-Step Process for Leading Change: Harvard
University professor John Kotter's model has eight steps:
 increasing the urgency for change;
 creating a powerful coalition for change;
 creating a vision for change, communicating the vision;
 removing obstacles;
 creating short-term wins;
 building on them; and
 anchoring the change in corporate culture.
 E) Lewin's Change Management Model: Psychologist Kurt
Lewin created a three-step framework that is also referred to as
the Unfreeze-Change-Freeze (or Refreeze) model.
 F) McKinsey 7S: Business consultants Robert H. Waterman Jr.
and Tom Peters designed this model to holistically look at
seven factors that affect change:
 shared values; - in centre / the core
 strategy; - hard skills
 structure;- hard skills
 systems;- hard skills
 style; - soft skills
 staff; - soft skills and
 Skills – soft skills
Change management
challenges
 Companies developing a change management program from the ground up often face daunting
challenges.
 In addition to a thorough understanding of company culture, the change management process
requires an accurate accounting of the systems, applications and employees to be affected by a
change.
 Additional change management challenges include:
 Resource management
 Resistance
 Communication
 New technology
 Multiple points of view
 Scheduling issues

Perspective Management: - Vaibhavi A Oak

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PERSPECTIVE

MANAGEMENT IS SCIENCE TOO

MANAGEMENT INTO ACTION IN

MANAGEMENT INVOLVES A SET OF

WHILE DOING THIS, DUE TO LACK OF

OF GETTING THINGS DONE

MANAGEMENT IS THE GROUP OF

MCFARLAND DEFINES MANAGEMENT

THE TERM PROCESS

THE DYNAMIC NATURE

BUSINESSES FAIL AND

BUSINESS, WHICH CAN BE

BUSINESS, WHICH CAN BE

CALLED AS THE RESOURCES OF

CALLED AS THE RESOURCES

BUSINESS, WHICH CAN BE

MANAGEMENT APPLIES TO:

•CAPABLE OF UNDERTAKING THE TASKS

A GOOD MANAGER IS EXPECTED TO

•ABILITY TO SOLVE PROBLEMS

• ANY ENDEAVOR STARTS

•MANAGEMENT MEETS THE CHALLENGE

MANAGEMENT HAS DEVELOPED SINCE

IN INDIA, OUR VEDAS, RISHIS,

• THOUGH BUSINESSES WERE

• STEAM POWER AND ELECTRICITY WAS BROUGHT INTO FORCE

IN THE LATE 1920S THE GREAT ECONOMIC DEPRESSION OCCURRED IN

AND LACK OF DISCIPLINE OF

MANAGEMENT MOVEMENT LED BY

BUSINESS ACTIVITIES INTO SIX FUNCTIONS:

4. SECURITY ACTIVITIES RELATING TO THE STEPS

HENRY FAYOL IDENTIFIED QUALITIES OF

•GENERAL EDUCATION (ACQUAINTANCE

PERSPECTIVE MANAGEMENT SET

PERSPECTIVE MANAGEMENT SET

FORTH BY HENRI FAYOL:

FORTH BY HENRI FAYOL:

IMPORTANCE OF LEARNING SCIENTIFIC

IMPORTANCE OF LEARNING SCIENTIFIC

SCIENTIFIC MANAGEMENT CONSISTS OF A

SCIENTIFIC MANAGEMENT CONSISTS OF

•PROVIDING A SYSTEM OF MONETARY

F.W.TAYLOR DEFINED SCIENTIFIC

F.W.TAYLOR FIRMLY BELIEVED THAT

B. HARMONY IN GROUP ACTION

DRUCKER COINED THE TERM

•BASIC OBJECTIVE OF MANAGEMENT :

MANAGEMENT BY OBJECTIVES: (MBO)

DRUCKER INTRODUCED THIS CONCEPT

•Conflict: She rejected domination and compromise ways of removing conflict.

George Elton Mayo

•HEWAS THE FIRST PERSON TO LOOK INTO THE

HAWTHORNE EXPERIMENTS WERE CONDUCTED AT THE HAWTHORNE

ELTON MAYO AND HIS COLLEAGUES

IS WRITTEN BY LOOKING AHEAD INTO THE

THIS ACTS AS A POWERFUL

TIME IS ALLOWED FOR DREAMING

• THE VISION STATEMENT GIVES DIRECTION TO THE

•THEVISION SHOULD PROJECT THE GROWTH

Vision statement should be: Progressive

TO BE A WORLD CLASS CORPORATE

IFTHE VISION IS “WHAT” OF LIFE, THEN THE