Principles of Management 1226074505766252 8

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

Applies to and through any kind of organization Applies to Managers at all levels Concerned with Doing the right things right at all times: 1. Effectiveness: Achievement of objectives (Right Things); 2. Efficiency: Achieving those objectives with least amount/ sacrifice of resources (Things Right); 3. Continuous Improvement: in creating increasing surplus (at all times); Improve or die = survival of the fittest what gets measured, gets managed and improved e.g. Productivity= Output / Input ratio
Collective, cohesive and consistent human effort towards accomplishing a common objective.
Management: Definition ctd.

Additionally, Managers need to factor in external environmental forces:
Political Economic
Regulatory
Societal
Organization
Globalization Technological
For maximum benefit to the organization vikramthadeshvar@hotmail.com
Management: Roles & Skills
Management - what managers do:

Fredrick Taylors path-breaking scientific approach Henri Fayols classical definition of functions, now modified to:
Plan -- Organize -- Lead(Command&Coordinate) -- Control Interpersonal + Informational + Decisional Technical / Human / Conceptual
Mintzbergs map of managerial roles:
Katzs interpretation of skills:
Management get things done through others:

Leadership: The ability to influence a group towards achievement of goals. Motivation: The willingness to exert high level of effort towards goals Communication:The transference and understanding of meaning vikramthadeshvar@hotmail.com
Management: roles & skills ctd.

Managerial Roles (Mintzberg)
Role
Interpersonal Figurehead Leader Liaison Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Trouble shooter Resource allocator Negotiator
Description
symbolic head; required to show face in social & legal conditions. Motivating & directing subordinates Networking outside for information & favours
Examples
Ceremonial, Civic etc. project plan Industry group meets
nerve centre and interpretator Reports networking within the organization Meetings etc. Transmit intent to outsiders; expert Board Meets Opportunity finding& reacting Handling unexpected disturbance Initiating/approving changes vikramthadeshvar@hotmail.com Getting best deal for Organization
Strategy Plan Contingency Budgeting Contracts
Management: roles & skills

Managerial Skills(Katz & others)
Technical Skills:
Application of specialized knowledge or expertise acquired though formal training & its use.
Skills Needed
Board Exec. Mgr. Supr.

hnic Tec
c Con
Human Skills:
Ability to work with people, understand and motivate groups & individuals.
ual ept
AN HUM
Conceptual Skills:
Mental ability to recognize, analyze, diagnose and think through complex situations.
al
Evolution of Management
Management, as a concept as we know it today, is associated with mass consumption leading to production of standardized goods in large volumes; Prior to the Industrial Revolution, man made devices were in use in sizeable numbers but often one of a kind and crafted rather than manufactured e.g watches and clocks. However, many of the supportive processes can be traced to early roots: logistics, scheduling e.g. boat building; automation (use of m/cs) e.g. printing; The advent of the management as a science can therefore be traced to late 18th /early 19th century. vikramthadeshvar@hotmail.com
Evolution of Management ctd

Elements of modern management, with a focus on man i.e. HR concepts first began to appear in the West around the same time:
as a reaction to the harsh behaviour of autocratic businessmen like Henry Ford. It evolved through (labour) Welfare, Industrial Relations, Personnel Management to its current form. (Marxism was becoming a recognizable philosophy in Europe!); as a need to utilize human resource better due the adverse supply-demand situation. Employment in the industry had overtaken agricultural labour. This was aggravated in Europe, by WW I.
In the 20s, Rationalization & Efficiency were the buzzwords (Taylor, Fayol etc.), calling for a scientific approach to selection and work allocation the corner-stones of modern production management:
Standardization of parts and work elements resulted in ability to make work repetitive for individuals (do-ers)

End of WW II brought in an era of un-sated demand, resulting in a boom for production activity more of everything was required. Quantity backed by efficiency were the guiding principles: an era of Optimization driven by suppliers choice rather than customers wants. However, some people notably Japan restarted their devastated economy with different orientation: Quality. The key was true economy of all resources with the customer as the focal point since they did not have the luxury of a surplus funded, hungry market. By the late 60s, demand tended to slow down and the growing competition gave customers greater choice quality as an important buying criterion emerged. OPEC crisis in mid-70s turned the world around on its head! Energy the prime mover of industrial world became very expensive. The demand boom faded with customers demanding quality and lower prices and better service.
First inventions of mass production were linked to textile manufacturing (Spinning Jenny/ Hargreaves) which combined with use of water power (Arkwright), made a powerful social impact in the late 1700s; Watts steam engine completely revolutionized harnessing of mechanical power for production (first to use were cotton mills) and transport; Poor Reliability of early machines led to the creation of machine tools the Lathe (Maudslay) in 1790, with which to turnout parts to closer tolerances and fit. This led to creation of interchangeable parts and the first uses were in manufacture of muskets and pistols! These were the triggers for mass production: mechanical power & interchangeable parts; leading to production moving away from homes and craft-shops to work-shops/factories. By 1900 (in the West), nearly everything was being produced by the factory system.

Division
of Labour: under this principle, work could be organized/grouped into a set of specific, related tasks which were repetitive in nature. Man could be trained to perform this set of tasks only, so that efficiency of task performance was maximized. When extended throughout the organization, this took the form of Specialization - with the organization benefiting from the maximum use of specialist skills. Both economically and under supply-shortage conditions, this worked well. Much of this was an extension of trade/craft skill-groups organization (guilds) which was the hallmark of pre-industrial production. Till the end of the 30s, these fundamentals were refined, polished(e.g. Organization structures) and extended ( e.g. workmeasurements) in a relentless focus on efficiency.
With
WW II, a further need for reliability gave birth to the principles of sampling & inspection statistical methods were introduced to regulate quality of output.

This brought to the forefront the philosophy and practice of Total Quality as the guiding force for manufacturing later to spread into management of operations and enterprises:
Central to this theme is the dominance of the Customer; Customers were any person or person receiving goods and/or services internal or external; Quality was redefined as fitness for use elevated from the narrow confines of conformance to specifications; Continuous improvement was the key to continuity and success against demands of customer and competition; importantly, everybody could contribute quality is every- bodys business; Particularly, for production, quality means best products at least cost reduced waste of all resources, spawning a host of (linked) programs to conserve time, money & effort:
Just in Time, SMED/OTED; Lean manufacturing; Q-circles/Kaizen/6-sigma; 5-S, TPM, DoE;
Principles of Management 2
Management: A Systems Approach
Systems approach to Management

ENVIRONMENT
input
Transformation process
output
Feedback (Reenergizing the system)
System Boundary
Organization as a System receives Input, transforms it through a Process for Output and Operates in an Environment (economic, regulatory and other forces) vikramthadeshvar@hotmail.com
Systems approach to Management ctd.

Systems Concepts
System Boundaries and Subsystems
> Systems often consist of numerous subsystems. > Each subsystem has elements, interactions with other subsystems, and objectives. > Subsystems perform specialized tasks for the overall system.
Subsystem Interfaces and Interface
Problems
Sub-System 1
Sub-System 2
Sub-System 3

Outputs and Inputs
Systems produce Outputs from Inputs i.e. the
Inputs are converted to Outputs. Outputs of one subsystem become inputs to another subsystem. Outputs must adhere to standards to be useful or acceptable to the next subsystem.
System Environment
Environment consists of people, organizations
and other systems that supply data to or that receive data from the system Managers at different levels perceive Environment vikramthadeshvar@hotmail.com differently
Inputs or the resources managers deal with are:

Inputs: 5 Ms of Management
Man: human resources, both inside and connected with an organization; Materials: goods (hard & software, processed or semifinished) and services required to create the sellable end product; Machines: technology and expertise deployed towards the transformation process; Methods: systems, procedures and processes seamlessly put together for the transformation; Measurement: score-keeping and in-process monitoring continuously with due feedback to keep on-course on time.
Money is required for generating all theses Ms managers need to acquire, deploy, generate and vikramthadeshvar@hotmail.com distribute money as a primary need for business!

Output for Stake-holders in Business:
Stake: Something wagered or risked; an interest in an enterprise with contingent gain or loss Webster s dictionary Holders who have stake in Business:
Shareholders: are the owners. They have put in their money in the enterprise, expecting better returns from it than from other ventures; Society: includes the State, provincial and local governments for the improvement of quality of life of its citizens;

Output for Stake-holders in Business ctd.

Suppliers: continuity of their enterprise depends on the success of the customer enterprise; Customers: require the goods and services provided by the enterprise, better than than those from its competitors. The enterprise is, in turn, a supplier to its customers; Employees: livelihood depends on the progress and success of the employing enterprise;
There is a freedom of choice (for association) between each of these stake-holders and the enterprise in the longer term:

But they sink or swim together in the shorter term Length of term definition varies with individuals!

Management as a system transforms inputs: by the process of
Planning + Organizing + Staffing + Leading + Controlling
to accomplish certain pre-determined, (as derived from stakeholder needs) goals or objectives

Man, Machine Material, Method, Measurement
Stakeholders Shareholders; Society; Customers; Employees; Suppliers
Product/Services, Profits, Customer & Societal satisfaction, Other Long-term Goals
Controlling
Organizing
Planning
Staffing
Inputs
(Goal Oriented)
Outputs
(External To Orgnzn.)
Stake holder Feedback (reenergizing the system)
vikramthadeshvar@hotmail.com EXTERNAL ENVIRONMENT(Opportunities, Constraints)
Leading
Management Process First Step: Planning
Planning
Planning involves selecting objectives or goals and the course of actions to achieve them:
Provides the bridge to take us from where we are to where we want to go; Is a rational approach to achieving preselected objectives - based on innovation, knowledge and purpose; Decision making in choosing the best from alternative courses of action and is integral to planning;
Plans as foundation of Management

What kind of resources needed? What kind of people & org. structure to have? How to lead them to reach planned goals? How to control in case of deviation from plan ?
Plans
The primacy of vikramthadeshvar@hotmail.com
Types of Plans
Mission / Purpose
The basic function or reason for existence of an enterprise/ organization
Case in point: Mission of Indira Institute

To train our students to become the best business minds and entrepreneurs today, who will lead their companies successfully into the future tomorrow , locally, nationally and globally.
Type of Plans (Contd)
Objectives/ Goals
The end towards which activity of an organization is aimed, e.g.

For a Business enterprise profit, surplus creation; For a Management Institute: The number of employable/useful trainees;
Strategies

Determination of the long term objectives and adoption of a course of action Gives a frame work for linked action-plans, communicated systematically to guide thinking and actions.
Types of Plans (contd)
Policies
Plans that are general directional statements (or understandings) that guide/help in decision making:
Repeat decisions taken reflexively; Delegation of tasks without loss of control.
Some discretion is permissible depending on circumstances thus encouraging initiative within limits and situational adjustments; Issues with Policy
Seldom documented in writing Subject to interpretations
Procedures

Plans that are chronological sequences of required actions: task-oriented in nature; Cuts across department boundaries (subsystems) in an organization: e.g. customer complaint handling procedure; Procedures and policies are inter related: e.g. authorization for paid leave

Policy governs quota, responsible authority etc. Procedure governs application, grant and record-keeping.
Rules
Specific actions or non-actions allowing no discretion
Caution: rules (and procedures too) limit initiative!

Programs
Action plans (mainly non-routine or for changed activities) including, task assignments, steps to be taken, resources to be deployed etc. to achieve a (new/renewed) goal;
Primary program may require supporting programs, spreading across the enterprise; Perfect coordination between supporting & primary programs essential to avoid delays, unnecessary costs and expected roll-out.
Programs are a complex of (sub)goals, policies, rules and other elements necessary for the course of action e.g. obtaining ISO certification.
Budgets
A statement of expected results expressed in Numerical terms e.g. financial operating budget = profit plan; Budgets enforce precision in thinking:
Making a budget is planning by itself; Encourages innovation a different way to work
Budgets serve for Control:

Enforces discipline in execution of plans; Instills cost consciousness; Makes people (constantly) plan!
Steps in Planning
Being aware of challenges Market, Customers wants, Competition, Own strengths & weakness Setting Goals/ Objectives Planning premises Identifying alternatives
What to accomplish Internal & external & when Environment/conditions
Comparing & choosing an alternative e.g., Sales budget e.g., plan to buy Decision Operational Expense Equipment, recruit & train making vikramthadeshvar@hotmail.com budget, Employees, develop product
Budgeting (Numberizing Plans)
Formulating Supporting plans
The Planning Process
Planning Period:

Short range plans e.g. material procurement plan in a factory Long range plans e.g. product development plan, plant/production facility installation; Urgent drives out the Important mismatch between short & long term plans!
Planning horizon must allow for actions to run their course requiring commitments:

Thus decisions today are key to good plans; Long-term plans reap benefits of good short-term plans.
Steps in Planning
Being aware of Opportunity Setting Goals/ Objectives Considering, Market, What to accomplish Competition, Customers & when wants, Own strengths &weakness
Objective = Important end towards which activities are directed; therefore needs verification at the end of the plan period.
Hierarchy of Objectives& Org. Levels

Mission Overall Objectives & Key result areas. Divisional objectives Departmental objectives Individual objectives
Board of Directors CEO Division Head Product X Sales & Mktg Dept Sales Manager A Division Head Product Y Production Dept
Sales Manager B
Objectives set end results they need to be supported by a hierarchy of sub-objectives, duly networked through the organization to avoid discord and wasted vikramthadeshvar@hotmail.com
Hierarchy of Objectives& Org. Levels ctd.
The Organizational Objectives is deployed into the objectives of :
Divisions Departments Individual objectives; The cascade principle: seamless flow;
Mutual support & interlocking of goals is essential
Managers must ensure that the components of the network fit each other; Departments/divisions can be blind-sided.
Hierarchy of Objectives& Org. Levels ctd.

Top-down Approach
Mission Overall Objectives & Key result areas. Divisional objectives Departmental objectives Individual objectives
Bottom-up Response: The result
While setting Objectives, ideally, Top Management should get information / buy-in from lower levels to set realistic goals for a good result. vikramthadeshvar@hotmail.com
Key Result Areas (KRA)

Are areas in which performance is essential for the success of an enterprise Examples of generic KRAs:

Market share Return on Investment (ROI) Service level Customer satisfaction
Peter Drucker recommends: Market standing, innovation, productivity, physical & financial resource, profitability, managerial performance & development, worker performance & attitude and public responsibility.
Management By Objectives (MBO) that integrates many A comprehensive managerial system

key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizations and individual objectives:

Set-out by Peter Drucker in 1954; Integrated to personal performance appraisal by Douglas McGregor in 1957; Has formed the basis for many theories on motivation; Has been criticized for introducing a short-term focus and undesirable behaviour; Currently viewed as a way of managing not a specific tool.
MBO (contd)
Managing the MBO way involves:

Identifying clearly defined KRAs Setting verifiable measurement of KRAs Facilitating self-direction, accountability & commitment by subordinates Motivation of subordinates to achieve and exceed set targets Emphasis on performance rather than on personality
Guidelines for setting Objectives
Clear & Verifiable
Clarity scores over precision approximately right over accurately wrong! Figures Percentage Time frame (by which date) Should cover main deliverables of the job/ function
Expressed in Quantitative terms

Challenging yet reasonable: S.M.A.R.T
Identification of assumptions underlying the objectives Consistency of:

Guidelines for setting Objectives (Contd)

objectives with those of superiors, Organization & other departments Short time action-plans with Long-term objectives
Inclusion of personal growth, development and improvement targets Ensuring availability of and access to needed resources Documentation and communication of objectives to concerned persons
Benefits of MBO
Result oriented planning of goals, resources, organization Setting of standards for Control Decentralization of Management and clarification of Organizational roles & responsibilities:

Accountabilty & commitment of employees Enables timely corrective actions (as required)
Weaknesses of MBO
Emphasis on:

short term at the expense of long term Results over Process Individual over collective effort
Failure to grasp and deploy the concept of seamless cascade Difficulty in setting agreed, harmonized goals Danger of inflexibility
Planning Premises & Strategies

Setting Goals/ Objectives Planning premises Identifying alternatives Comparing & choosing an alternative Decision making
What to accomplish Internal & external & when environment
Strategic Planning Process
Strategy = determination of the purpose / the basic long-ter objectives; the adoption of courses of action and allocation of resources required to achieve the aim
Planning Premises & Strategies ctd.

Stakeholder Wishes & Shareholder demands Current External situation
Management Orientation
Enterprise Profile
Purpose & Major objectives of enterprise
Forecast External situation Key success factors & Alternative Strategies Current resource situation Internal Strengths & Weakness Strategic choice
External Opportunity & Threat
The Strategic Planning Process

Planning Premises
Porters Five Forces : an Model for analysis of the Externals environment. vikramthadeshvar@hotmail.com
Estimate of future demand is made by qualitative methods, time-series methods and/or causal methods:

Planning Premises: forecast of demand
Qualitative relies on judgement of experts to translate to quantities; Time-series statistically interpolate demand on historical data; Causal method seek co-relation on cause and effect basis between two (or more) variables to quantify demand; However, all forecasting methods are limited by:

Handling of un-quantifiable factors e.g. national pride Unrealistic assumptions fuelled by a desire to succeed Excessive data required (often unobtainable) to make accurate forecasts vikramthadeshvar@hotmail.com Uncertainty with environmental changes: Technology,
Generic Strategy
Customer
Relationship
Competitive Advantage
1. Cost Leadership:
To continually work reducing the cost prices of products. Supplier Q-C-D has very high priority.
Company
Bmarking
Partnering
2. Differentiation:
To constantly offer innovative and unique solutions. Supplier technology & quality has focus.
Competitor
Supplier
Ultimate competitive position: - position w.r.t major Customers

- K.S.Fs of Competitors - leveraging of suppliers
3. Customization:
To offer required services in the Lean Management vikramthadeshvar@hotmail.com required manner is the
Red: Marketing Perspective; Blue: Financial Perspective Cash Source Hi Lo

Hi Hi
Generic Strategy: BCG Matrix
Market Growth rate
STAR Hold
??? Build
Cash Use
Cash Cow Harvest
DOGS Divest
Lo Hi
Lo
Relative Market Share
Lo
Planning Premises & Strategies ctd.

Budgeting ( Numberizing Plans) Say, Sales budget Operational Expense budget, Capital expenditure budget Formulating Supporting plans Comparing & choosing an alternative Decisio n making
Say, plan to buy Equipment, recruit & train Employees, develop product etc
Deployment (MBO etc.)
Decision Making = is the core of the planning process; a plan does not come into being unless a decision i.e. certain commitments of resources, managerial time and money are made and risks are taken. Caution: A Plan is not intentions and should not suffer from Analysis Paralysis. vikramthadeshvar@hotmail.com
Decision Making
Decision making is a rational choice process, bounded by:

Limitations: time, information and logic; Behaviour: Risk averseness and biases.
A key step in the process is to identify those limiting factors, road-blocks to each effective (right thing) alternative then finding a solution with least sacrifice of resources (thing right):

Factors: quantitative, qualitative/intangible; Finding solutions:

marginal analyses benefits with incremental inputs; cost-effectiveness assessment of benefits over costs. vikramthadeshvar@hotmail.com
Decision Makingctd.
Experience: good teacher and useful when routine/repeat situations arise under similar circumstances. Without due analysis of the conditions, mistakes tend to repeat or a poor fit results.
How to select Amongst the Alternatives ?
Research & analysis: the approach is in at firs understanding the problem (half the solution!) then finding relations between various factors which hinder or foster goal attainment. This is a structured, analytical approach quantitative or otherwise.
Experimentation: arguably, the best technique to use, particularly when either experience or rationale is lacking/limited. However is expensiv and success/failures are magnified, results are subject to interpretational errors.
Decision Makingctd.
Decision making takes place under varying degrees of uncertain conditions and risks. Techniques used to aid the process are:
Risk analysis: every decision is based on interactions amongst different factors/variables each of which have their own probabilities (towards success). Analysis of these probabilities yield a risk profile for each alternative path. In the absence of defined probabilities, estimates can be used. Decision trees: the outcome (measure pre-decided e.g. cost or time) of every step in the decision is charted and a course selected on the most favourable outcome. Very much like making a trip, navigating by using a road-map (refer example in W & K, Management
a global perspective/10th edn. Pg. 209)
Decision Makingctd.
Flow Charts: as a process-guide to taking a decision and helps as a check-list of key variables, the sequence in which they fall and the interrelations. Key to making a choice or re-examining the path taken are also indicated as risk-reduction devices.
(refer example in W & K, Management a global perspective/10th edn. Figure 8-5)
Decision Support Systems: a wide variety of (proprietary) computer based programs are available for managers to use their time more effectively for decision making of semi-structured tasks by providing alternative evaluations. They focus on the process of decision making, taking data provide by the management information systems in enterprises.
Management Process: Organizing for results
Nature of Organizing
Organizing may be broadly defined as:

1. 2. 3. 4.
The identification and classification of required activities; The grouping of those activities towards attaining their set objectives; The assignment of those groupings to a responsible manager, duly empowered; The provision for coordination among, within and across the groups in the organization. Clarify tasks & responsibilities, Remove obstacles, Furnish decision making & communication network
Organization structures are designed to:

The Business Organization Model: Value Chain (Porter,1985)

Support Activities
Firm Infrastructure Human Resource Management Technology Development Procurement
ar M n gi M ar gi n
Nature of Organizing ctd.
Inbound OutboundMarketing Operations Service Logistics Logistics & Sales
Primary Activities
margin reflects the reward for the risks run by the company. All activities together need to generate value greater vikramthadeshvar@hotmail.com

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

The Value Chain: Support Activities
Procurement: relates to the function of purchasing inputs used across the firms primary and support activities; Technology Development: relates to know-how, processes & procedures, technology embodied in the product design and delivery. Most activities have their own sub-set of technology; Human Resource Management: directed at recruiting, training, developing and compensating all personnel;
Most practicing mangers would translate this value chain to imply an organization as: a formalized, intentional structure of roles and positions

Thus formal organization implies the intentional structure of roles in an enterprise. However, in an enterprise informal organization will form, not necessarily bad and is:
a network of personal and social relations not established or required by formal organizations but arising spontaneously as people associate with each other.

Hierarchical levels
The building block of an organization is the Department: a group charged with independent task & responsibilit
# #
#
# Office Bridge Team $ Car pool
Span of control
Nature of Organizing ctd. Departmentation
Grouping activities & people into departments makes it conceptually possible to expand organizations to an infinite degree. Different patterns have been successfully used to group activities:
By simple nos. is a simple method works well for the lowest levels where work is routine, uniform and nonspecialized; time-grouping is an extension of this method where shift-working is required; By enterprise functions embodies what enterprises typically do e.g. Production, Engineering, Sales etc. This method, defined by F.W.Taylor, is arguably the most prevalent method still used.
Departmentation ctd.
By territory or geography is very common when the geographical spread is wide. It was a device introduced to speed up management in similar units for easy and swift communication e.g. Sales: N/E/W/S; Fire Brigade: Camp, Hinjewadi, Aundh etc. By Customer/Account orientation reflecting the primary interest in nature of markets/business/customer e.g. Banks: Institutional banking, Small Savings etc. By Process groups encountered primarily in specialized/ manufacturing operations where processes are vital e.g. Advertising: Copy-writing, Creative etc.; Manufacturing: Steel Melting, Wire-drawing etc. By Product Lines has evolved with enterprises becoming multiline with function needing adaptation/integration to suit specific products e.g. Tata Motors: Passenger Vehicles / Commercial vehicles
By grid control in essence combining the functional and the product-line patterns to best effect. Functional excellence is not subjugated to Operational ease. In projects, this serves to bring together the diversity of skills required into one team. The Strategic Business Unit: companies today are organizing themselves as companies within a company to allow for maximum flexibility and freedom of operations, especially when the products/businesses are unconnected e.g. General Electric. Generally, SBUs have:

Their own Missions, Goals and Strategies; Distinct and definable set of competitors; Deploy and manage resources in key areas; A reasonable size.
Example of Grid Control & S.B.Us
C.E.O
Finance
Qual.
HRM
BU 1
BU 2
I.S.O
I.R.M Recr.
G/H.R Plant 1
G/H.R Ind. Sin.
T&D

Span-of-Management
The purpose of organizing is to make human cooperation effective and is limited by:

the number of persons a manager can supervise effectively and efficiently; while the total number is dictated by the quantum of work/ nature of task/spread etc. Thus the two dimensions, Level (depth) and Span of control (width) are interrelated . The reason for creating Levels of organization is the limitation in the span of control. Effective span is influenced by:
Training/skill of subordinates and personal contact required; Clarity of delegation of authority; Clarity of plans, use of objective standards and vikramthadeshvar@hotmail.com communication techniques;
Span-of-Management ctd.
Levels, per se, are not desireable:
They are expensive as they increase, both infrastructure costs and staffing tends to increase; Real work is accomplished at the gemba (Japanese: workplace) where the actual valueaddition/transformation takes place. The contribution of levels on top are not directly co- relatable, thus best avoided; Communication become complicated omissions, filterations and misinterpretations lead to wasted and misdirected effort; Planning and control become tortuous, requiring complicated coordination and alignment between levels.
Studies reveal that between 8 to 10 people at higher levels and upto 15 at lower levels is a good span. vikramthadeshvar@hotmail.com

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Principles of Management

Management: Definitions, Roles & Skills

Management: Definition ctd.

Management: Definition ctd.

For maximum benefit to the organization vikramthadeshvar@hotmail.com

Management: Roles & Skills

Management - what managers do:

Mintzbergs map of managerial roles:

Katzs interpretation of skills:

Management get things done through others:

Management: roles & skills ctd.

Strategy Plan Contingency Budgeting Contracts

Management: roles & skills

Board Exec. Mgr. Supr.

Evolution of Management ctd

Evolution of Management ctd

Evolution of Management ctd

Evolution of Management ctd

Evolution of Management ctd

Just in Time, SMED/OTED; Lean manufacturing; Q-circles/Kaizen/6-sigma; 5-S, TPM, DoE;

Systems approach to Management

Feedback (Reenergizing the system)

Systems approach to Management ctd.

Subsystem Interfaces and Interface

Systems approach to Management ctd.

Systems approach to Management ctd.

Inputs or the resources managers deal with are:

Systems approach to Management ctd.

Systems approach to Management ctd.

Systems approach to Management ctd.

Systems approach to Management ctd.

Stakeholders Shareholders; Society; Customers; Employees; Suppliers

Product/Services, Profits, Customer & Societal satisfaction, Other Long-term Goals

Stake holder Feedback (reenergizing the system)

vikramthadeshvar@hotmail.com EXTERNAL ENVIRONMENT(Opportunities, Constraints)

Plans as foundation of Management

The primacy of vikramthadeshvar@hotmail.com

The basic function or reason for existence of an enterprise/ organization

Case in point: Mission of Indira Institute

Type of Plans (Contd)

The end towards which activity of an organization is aimed, e.g.

Types of Plans (contd)

Types of Plans (contd)

Specific actions or non-actions allowing no discretion

Caution: rules (and procedures too) limit initiative!

Types of Plans (contd)

Types of Plans (contd)

Budgets serve for Control:

What to accomplish Internal & external & when Environment/conditions

Budgeting (Numberizing Plans)

Formulating Supporting plans

The Planning Process

Hierarchy of Objectives& Org. Levels

Hierarchy of Objectives& Org. Levels ctd.

The Organizational Objectives is deployed into the objectives of :

Divisions Departments Individual objectives; The cascade principle: seamless flow;

Mutual support & interlocking of goals is essential

Hierarchy of Objectives& Org. Levels ctd.

Bottom-up Response: The result

Key Result Areas (KRA)

Market share Return on Investment (ROI) Service level Customer satisfaction

Management By Objectives (MBO) that integrates many A comprehensive managerial system