CHAOS THEORY(1960S)

The theory is associated with a mathematician Henri Poincare.

• Chaos theory is the study of
complex, non linear dynamic system.
• Butterfly effect.
• Pendulum suspended between magnets.
• Chaos theory is concerned with unpredictable
courses of events.
CHAOS THEORY CONT.
• When systems become dislodged from a
stable state, they swing back and
forth between order and chaos.
Any system has the potential to fall into chaos.
• In the 1960s, the meteorologist Edward Lorenz, discovered
the butterfly effect, in which he asserted that a butterfly
flapping its wings in Tokyo can impact weather patterns in
Chicago.
CHAOS THEORY
Assumptions for the Theory:
• Long term planning is very difficult.
• Smaller disturbance in initial state multiplies
over time.
• Future forecasting is difficult due to
complexity and non linear relationship.
CHAOS THEORY CONT.
• Therefore organization should not be spent
on forecasting and strategic planning.
Conclusion:
• Chaos theory provides a theoretical for
the dynamic evolution of organizations/institutions.
• Long term forecasting is almost impossible
for chaotic system.
CHAOS THEORY CONT.
• Short term forecasting is possible.
• Dynamic changes can occur unexpectedly.
MANAGEMENT BY OBJECTIVES
• A process or system in which a manager and his subordinates jointly set
specific objectives to accomplished within a time frame and assigns the
person responsible.
Assumption:
•  People tend to perform better when
they are known about what is expected from them
• When they can associate their personal
goals with that of the objectives
of the organization.
MANAGEMENT BY OBJECTIVES
PROCESS

By Peter
Drucker:
MANAGEMENT BY OBJECTIVES
CONT.
In MBO goals are expected to be SMART, i.e.
• Specific
• Measurable
• Achievable
• Realistic, and
• Time bound.
MANAGEMENT BY OBJECTIVES
CONT.
Process of MBO:
• Goal setting
• Action plan
• Performance appraisal
MANAGEMENT BY OBJECTIVES
CONT.
Goal setting:
• Defining the vision
• Mission Goals
• Objectives
• Time frame
MANAGEMENT BY OBJECTIVES
CONT.
Action plan:
• How objectives will be achieved(strategies)
• What is to be done(activities)
• Procedures
MANAGEMENT BY OBJECTIVES
CONT.
Performance appraisal:
• Comparison between actual performance and the
predetermined standards
• Review progress.
ADVANTAGES OF MBO
• Helps the employees to understand their duties at the
workplace.
• KRAs are designed for each employee
as per their interest, specialization and
educational qualification.
• Employees are clear as to what
is expected out of them.
ADVANTAGES OF MBO CONT.
• Leads to satisfied employees
• Employees contribute to the achievement of the goals and
objectives of the organization
• Ensures effective communication among employees
• Leads to well defined hierarchy at the work place
• Leads to highly motivated and committed
employees.
• The process sets a benchmark for every employee.
LIMITATIONS OF MBO CONT.
• It ignores the prevailing culture at the work place.
• It ignores the existing conditions /circumstances
at the work place as more
emphasis is laid on targets.
• Kills innovation, creativity since employees pursue
identified objectives.
LIMITATIONS OF MBO CONT.
• Work may sometimes become monotonous.
• Creates a lot of workplace politics
as employees try to outshine their
fellow workers.
• Difficulties in quantifying the goals and objectives.
• Costly and time consuming process.
• Emphasis on short term goals
TOTAL QUALITY MANAGEMENT
• A continuous effort by the management as well as employees of
a particular organization to ensure long term customer loyalty
and customer satisfaction.
• A system of management based on the principle that every
member of staff must be committed to maintaining high
standards of work in every aspect of an organization’s operations
EVOLUTION OF QUALITY
MANAGEMENT
TOTAL QUALITY MANAGEMENT
PROCESS
AIMS OF TOTAL QUALITY
MANAGEMENT
• Customer satisfaction
• Employees satisfaction
• Product quality
• Continuous improvement.
• Innovation of total quality
TQM PROCESS CONT.
• Planning quality procedures
• Performing the steps needed to enhance quality
• Studying the results to determine what
went right and what went wrong
• Incorporating feedback into the next cycle
to make the process better.
PRINCIPLES OF TOTAL QUALITY
MANAGEMENT
• Customer focus
• Total employee commitment
•  Process approach
• Integrated system
•  Strategic and systematic approach
• Continual improvement
• Fact-based decision-making
•  Communications
PRINCIPLES OF TQM
BENEFITS OF TQM
• Less product defects.
• Excellent Customer Satisfaction
• Lower costs.
• Well-defined cultural values.
• Helps identify skill deficiencies in employees
and the need for education and training
• Enables continuous improvement
BENEFITS OF TQM CONT.
• Sharpens Competitive Edge of the Enterprise
•  Improvement in Organizational Performance
• Good Public Image of the Enterprise
• Better Personnel Relations:
LIMITATIONS OF TQM
• Requires organizations wide commitment to quality
improvement.
• Waiting for a long time:
i.  Change in methods, processes etc. of organization
ii.  Change in attitude of employees
iii. Change behavior of employees
• Relies heavily on employees support.
• Costly to implement e.g requires a lot of training,facilities
REFERENCES
1. Peter F. Drucker (1954) Practice of management.
2. www.managementstudy.com>management by objectives-mbo
3. Vincent Van Vliet(2014) Total Quality Management(TQM)
4. Total Quality Management (TQM) Concepts, Advantages and
Limitations By: Siddhart Sai (Article)
5. Total Quality Management: It’ Meaning and Definition. By:
Smriti Chand in YourArticlelibrary.com
6. David Levy, (1994)Chaos Theory and Strategy: Theory
Application and Managerial Implication
7. Jorgensen S.E.(2008) Encyclopedia of Ecology