managing people ppt

MANAGEMENT

MANAGEMENT

SCOPE OF MANAGEMENT

SCOPE OF MANAGEMENT

CHARACTERISTICS of MANAGEMENT

IMPORTANCE of MANAGEMENT

IMPORTANCE of MANAGEMENT

MANAGERIAL ROLES

EVOLUTION OF MANAGEMENT THOUGHT

CLASSICAL PERSPECTIVE:– BUREAUCRATIC ORGANISATIONS ( Max Weber):• HIERARCHY• DIVISION OF WORK; specialised jobs• RULES & PROCEDURE• RECORDS• IMPERSONAL RELATIONSHIPS• ADMINISTRATIVE CLASS; beaurocrats

EVOLUTION OF MANAGEMENT THOUGHT

– SCIENTIFIC MANAGEMENT (Taylor):

• Scientific task planning• Time & motion studies• Standardisation• Differential Piece rate• Functional Foremanship

EVOLUTION OF MANAGEMENT THOUGHT • ADMINISTRATIVE THEORY (HENRY FAYOL):

– Division of Work; Specialisation of labour & productivity

– Authority; must accompany responsibility– Discipline; systemmatic functioning– Unity of Command; each subordinate having one

Boss– Unity of Direction; all efforts focussed to Orgn’s

Goal– Subordination of individual interests to

organisation’s interest– Remuneration; fair

EVOLUTION OF MANAGEMENT THOUGHT

• ADMINISTRATIVE THEORY (HENRY FAYOL):– Balance between centralisation & decentralisation

concentration vs. distribution of power– Scalar chain; observe Formal chain of Command,

Top to Bottom– Order; orderly arrangement of men & material– Equity; fair treatment – Initiative; opportunity to initiate & implement

Plans– Stability & tenure of Personnel– Esprit de Corps; Strength in Unity

EVOLUTION OF MANAGEMENT THOUGHT

• NEO-CLASSICAL / HUMAN RELATIONS PERSPECTIVE:– Hawthorne experiments• Illumination Experiments• Financial Incentives Experiments

Conclusion:• Special Attention, feeling of Belongingness &

sympathetic Supervision are the motivating factors rather than physical working conditions / financial incentives

HUMAN RELATIONS AS A REFINEMENT

CLASSICAL THEORY• IMPERSONAL ORGNS• O.B. PRODUCT OF RULES• FOCUS IS ECO NEEDS OF

WORKERS• AUTHORITARIAN PRACTICES• RESULT: WORK ALIENATION

DISSATISFACTION

NEO – CLASSICAL THEORY• ORGNS A SOCIAL SYSTEM• O.B. PRODUCT OF FEELINGS• FOCUS IS EMOTIONS

• DEMOCRATIC PRACTICES• RESULT: HAPPY EMPLOYEES

&HIGHER PRODUCTIVITY

EVOLUTION OF MANAGEMENT THOUGHT

• BEHAVIOURAL SCIENCES THEORY:

– Elton Mayo, Abraham Maslow, Douglas Mcgregor– People inherently love work– People are more self-driven & creative than

opportunities given– Create Positive Work Environment• Clearly defined Goals• Incentives designed to Improve Performance• Participative decisions• Conflicts confronted openly

BEHAVIOURAL SCIENCES; A REFINEMENT

HUMAN RELATIONS• People want to Belong

• Seek participation on Routine matters

• Subordinate’s involvement will increase belongingness

BEHAVIOURAL SCIENCES• People want to Belong &

Contribute• Participation in Routine plus

Important Matters• Subordinate’s involvement

will increase productivity, quality of decision making, self-direction & motivation

EVOLUTION OF MANAGEMENT THOUGHT

• QUANTITATIVE APPROACH:– Use of maths & stats for managerial decision

making– Criteria such as costs, revenues,return on

investment etc determine decision making– Focus: Computer based MIS

EVOLUTION OF MANAGEMENT THOUGHT

• MODERN MANAGEMENT THOUGHT:– Mary Parker Follet• Constructive Conflict• Law of the Situation; Market conditions• Group Ethics over Individualism• Authority & Responsibilty

EVOLUTION OF MANAGEMENT THOUGHT

• Peter Drucker:– MBO; Joint Goal Setting– Decentralisation; criticised functional

specialisations & favoured self contained independent Product divisions

– Structure; reduction of Layers– Executive Development

MANAGEMENT IN THE NEW WORKPLACE(CHARACTERISTICS)

OLD WORK PLACE• RESOURCES:PHYSICAL

ASSETS• WORK: STRUCTURED• WORKERS: LOYAL

EMPLOYEES

NEW WORK PLACE• BITS; INFO, IDEAS

• FLEXIBLE, VIRTUAL• EMPOWERED EMPLOYEES,

FREE AGENTS, RESPOD TO CHANGING MARKETS,COMPETITION, SEIZE OPPORTUNITIES & SOLVE RECURRING PROBLEMS

MANAGEMENT IN THE NEW WORKPLACE(CHARACTERISTICS)

OLD WORK PLACE• STRUCTURE: TALL

HIERARCHY• DECISION MAKING:

CENTRALISED• WORK: REAL

NEW WORK PLACE• FLAT

• DECENTRALISED

• VIRTUAL TEAMS,FLEXI TIME

EX: IBM needs to staff a Project; Team raised consisting of suppliers, customers, interim Managers (skill; risk takers, quick learners, live with ambiguity & change, share knowledge

MANAGEMENT IN THE NEW WORKPLACE(FORCES)

Old Work Place• TECHNOLOGY:

MECHANICAL• WORKFORCE:

HOMOGENEOUS• VALUES: STABILITY,

EFFICIENCY• EVENTS; CALM,

PREDICTABLE

New Work Place• DIGITAL, E-BUSINESS• DIVERSE(GLOBALISATION)

• CHANGE, SPEED

• TURBULENT, UNPREDICTABLE

MANAGEMENT IN THE NEW WORKPLACE(MANAGEMENT COMPETENCIES)

OLD WORK PLACE• Leadership : autocratic• Focus: profits

• Doing work: individuals• Relationships: conflicts• Design: efficiency in

performance

NEW WORK PLACE• EMPOWERING• CONNECT WITH CUSTOMERS,

EMPLOYEES• TEAMS• COLLABORATION• BUILD LEARNING

ORGANISATION; VALUES EXPERIMENTATION, RISK TAKING, TECHNOLOGY & KNOWLEDGE SHARING

• Ex:WIPRO;writes software, performs consulting work,integrates back-office solutions,gives techn support

PLANNING & GOAL SETTING

• GOAL- DEFINES PURPOSE OF EXISTENCE OF THE ORGANISATION

• PLAN- BLUEPRINT FOR SPECIFYING RESOURCE ALLOCATIONS,SCHEDULES, & TASKS

PURPOSE OF GOALS & PLANS• LEGITIMACY: PURPOSE OF EXISTENCE• SOURCE OF MOTIVATION &

COMMITMENT:identification with Co, reduces uncertainty & clarifies goals for accomplishment

• RESOURCE ALLOCATION:employees, equipment, Capital

• GUIDE TO ACTION:sense of direction• RATIONALE FOR DECISIONS:on roles,

performances, structure, products,expenses

PURPOSE OF GOALS & PLANS

• STANDARDS FOR PERFORMANCE:specifies desired outcomes & performance criteria

SINGLE USE & STANDING PLANSSINGLE USE• PROGRAMS: PLANS TO ACHIEVE ONE-TIME

GOALS LARGE IN SCOPE EX:BLDNG NEW HQ,

CONVERTING ALL PAPER FILES INTO DIGITAL

• PROJECT: PLANS TO ACHIEVE ONE-TIME

GOALS SMALLER IN SCOPE EX:RENOVATING OFFICE,

SETTING UP INTRANET

STANDING PLANS

• POLICY: BROAD RULES, GENERAL

GUIDES TO ACTION EX: SEXUAL HARRASSMENT

POLICY, EMAIL USAGE POLICY

• PROCEDURE: PRECISE STEPS TO ATTAIN

GOALS EX:EMPLOYEE GRIEVANCES,

HANDLING REFUNDS

STRATEGIC MANAGEMENT

• SET OF DECISIONS USED TO FORMULATE STRATEGIES TO PROVIDE A FIT BETWEEN ORGANISATION & ITS ENVIROMENT TO ACHIEVE ORGANISATIONAL GOALS

GRAND STRATEGY

• GROWTH:– INTERNALLY: BY EXPANSION;NEW PRODUCTS,

NEW MARKETS– EXTERNALLY:ACQUISITIONS RELATED TO CURENT

BUSINESSES– EX: CITIBANK & TRAVELERS MERGE TO FORM

CITICORP

GRAND STRATEGY

• STABILITY:– AFTER RAPID GROWTH INTEGRATE BUSINESSES

• RETRENCHMENT:– DECLINE IN DEMAND leads to FORCED

LIQUIDATION OF BUSINESSES

SM PROCESS• EVALUATE EXISTING MISSION, GOALS &PLANS

(SITUATIONAL ANALYSIS) SWOT:– INTERNAL STRENGTHS & WEAKNESSES:• P&L STATEMENTS, BUDGETS, • EMPLOYEE MORALE SURVEYS• MARKET SHARE• CUSTOMER SATISFACTION• DISTRIBUTION CHANNELS• PROFIT-MARGINS• RETURN ON INVESTMENT• QUALITY CONTROL SYSTEM• STATE OF TECHNOLOGY• SALES FORCE TURNOVER

SM PROCESS

• EXTERNAL OPPORTUNITIES & THREATS:– COMPETITORS– CUSTOMERS– SUPPLIERS– LABOUR SUPPLY– TECHNOLOGICAL DEVELOPMENTS– POTICAL & INTERNATIONAL EVENTS– SOCIO CULTURAL CHANGES

SM PROCESS

• FORMULATE STRATEGY:– CORPORATE STRATEGY:BOSTON CONSULTING

GROUP (BCG) MATRIX• STAR; HIGH MKT SHARE, HIGH BUSN GROWTH RATE• CASH COWS; HIGH MKT SHARE, LOW BUSN GROWTH

RATE• Q MARKS; LOW MKT SHARE, HIGH BUSN GROWTH

RATE• DOGS; LOW MKT SHARE, LOW BUSN GROWTH RATE

SM PROCESS

• MICHAEL PORTER’S BUSINESS STRATEGY:– DIFFERENTIATION• CREATIVE FLAIR• STRONG MARKETING CAPABILITIES• REWARDS EMPLOYEE INNOVATION• CORPORATE REPUTATION FOR QUALITY• FLEXIBILTY IN OPERATIONS• STRONG CUSTOMER LOYALTY• EX: REEBOK, NIKE

SM PROCESS

• COST LEADERSHIP:– STRONG CENTRAL AUTHORITY– TIGHT COST CONTROLS– SOPS FOLLOWED– EFFICIENT PROCURING & DISTRIBUTION

SYSTEMS– CLOSE SUPERVISION– EX:BIG BAZAAR RETAIL, LOE COST DELL

COMPUTERS

SM PROCESS

• FOCUS:– CONCENTRATES ON A NARROW TARGET MARKET– EX: LOW-COST AIRLINES JET LITE PLYING LIMITED

ROUTES & STILL MAKING PROFITS

SM PROCESS

• STRATEGY IMPLEMENTATION:THROUGH– CHANGES IN LEADERSHIP

• PERSUASION, MOTIVATION

– ORGANISATION STRUCTURE• ORGN CHARTS,DECENTRALISATION

– INFO & CONTROL SYSTEMS• REVISE REWARDS, BUDGET ALLOCATIONS

– HR• RECRUITMENT, LAYOFFS, TRANSFERS

ORGANISING

• ORGANISING: DEPLOYMENT OF ORGANISATIONAL

RESOURCES TO ACHIEVE STRATEGIC GOALS

• ORGANISATION STRUCTURE: FRAMEWORK DEFINING HOW TASKS ARE

DIVIDED, HOW RESOURCES ARE DEPLOYED & DEPARTMENTS COORDINATED

ORGANISING

• WORK SPECIALISATION: The degree to which organisational Tasks are

subdivided into individual jobs; also called division of labour.

• CHAIN OF COMMAND: Unbroken line of authority which links all

individuals in the orgn. & specifies who reports to whom.

ORGANISING

• AUTHORITY: Formal & legitimate Right of a Manager to

make decisions, issue orders & allocate resources.

• RESPONSIBILITY: Duty to perform the Task

ORGANISING

• ACCOUNTABILITY: Mechanism which makes people with

Authority & Responsibility answerable to people in their Chain of Command

• Delegation: Process used to transfer Authority &

Responsibilty to subordinates

ORGANISING

• Line Dept: which performs tasks related to the Primary Goal of the orgn. Ex;Production, Sales, Accounts

• Staff Dept: which provides Advisory services• Centralisation: location of decision making

near top organisational levels• Decentralisation: location of decision making

near lower organisational levels

Functional Structure

Divisional Structure

MATRIX STRUCTURE

• Combines both Functional & Structural features:– Functional hierarchy runs Vertically (provides

traditional control within depts)– Divisional reporting exists Horizontally (Provides

coordination across depts)

MATRIX STRUCTURE

LEADING FOR HIGH PERFORMANCE

• LEADERSHIP: the ability to influence people towards the attainment of organisational goals

• LEADERSHIP VS. MANAGEMENT:– MANAGEMENT: promotes stability, order,

problem solving, within the organisational structure & systems

– LEADERSHIP: promotes vision, creativity & change

LEADERSHIP VS. MANAGEMENT:LEADERSHIP• Visionary • Passionate• Creative• Flexible• Inspiring• Innovative• Courageous• Imaginative• Initiates change

MANAGEMENT• Rational• Consulting• Persistent• Problem solving• Tough-minded• Analytical• Structured• Deliberated• stabilizing

TRANSACTIONAL vs.TRANSFORMATIONAL LEADERSHIP

TRANSACTIONAL• Clarifies role & tasks of

subordinates• Provides rewards• Tolerant & fair• Pride in smooth functioning

of organisation• Concern;impersonal aspects

like plans, budgets

TRANSFORMATIONAL• Ability to inspire & motivate

people to perform more than their capabilities through personal sacrifice

• Obsessed by visionary ideas to drive people

• Lofty visions, communicate to followers & win trust

• Ability to make the vision feel real, personal & meaningful to followers

Example of Transformational Leaders:– Richard Kovacevich of WELLS FARGO (Financial

Institution)– For selling motivated 1st line employees with slogan;Mind share plus

Heart share = Market share– Rewards employees– Spends time with employees interacting, giving pep talks– Awarded Banker of the Year 2003; cr to his 1,40, 000 employees.

Effective Leader

COMBINE Transactional + Transformational

Qualities

THE LEVEL 5 LEADER